Pakistan follows India's footsteps; Senate passes a resolution seeking withdrawal of high denomination Rs 5,000 currency notes.
Pakistan's Senate passed a resolution seeking withdrawal of high denomination Rs 5,000 currency notes to curb the flow of black money.
Senator Usman Saif Ullah Khan of Pakistan Muslim League tabled the resolution that the withdrawal of Rs 5,000 notes will encourage the use of bank accounts and reduce the size of the undocumented economy.
The withdrawal of the currency notes should take place within three to five years in order to purge markets of the notes.
Law Minister Zahid Hamid said that the withdrawal of the notes will create crises in the market and the people will resort to foreign currencies in absence of Rs 5,000 notes.
He also said that 3.4 trillion notes are currently in circulation in country of which 1.02 trillion notes are of Rs 5,000 denominations.
Pakistanís this demonetization appears to be inspired by India's recent demonetization drive on 500 and 1,000 Indian rupees .