Pakistani politicians want to ban large notes, say they can do it better than India
Published: Dec 21, 2016 8:44 a.m. ET
Upper house of Pakistan’s parliament recommends withdrawal of the country’s
highest denomination note to counter corruption, criminal activities
After India took the radical step of voiding the majority of its currency overnight to cut corruption and the nation’s reliance on cash, other countries with similar problems have been watching closely.
Venezuala already followed suit by taking nearly half its bank notes out of circulation and now some politicians in Pakistan, India’s rival and neighbor, want their country to do the same.
The upper house of Pakistan’s parliament this week recommended the withdrawal of the country’s highest denomination currency note to counter corruption and criminal activities, and help document the country’s large informal economy.
A resolution was passed by the Senate Monday, echoes the reasons given for India’s swift action that caused a severe cash shortage.
Senator Osman Saifullah Khan proposed that Pakistan’s central bank should stop printing the 5,000 rupee note (worth almost $50) and then phase it out over three to five years. Sen. Khan is from the Pakistan Peoples Party, one of the ruling party’s main rivals.
But he said if Pakistan did make a move to void currency, it would do it better than India.
Published: Dec 21, 2016 8:44 a.m. ET
Upper house of Pakistan’s parliament recommends withdrawal of the country’s
highest denomination note to counter corruption, criminal activities
After India took the radical step of voiding the majority of its currency overnight to cut corruption and the nation’s reliance on cash, other countries with similar problems have been watching closely.
Venezuala already followed suit by taking nearly half its bank notes out of circulation and now some politicians in Pakistan, India’s rival and neighbor, want their country to do the same.
The upper house of Pakistan’s parliament this week recommended the withdrawal of the country’s highest denomination currency note to counter corruption and criminal activities, and help document the country’s large informal economy.
A resolution was passed by the Senate Monday, echoes the reasons given for India’s swift action that caused a severe cash shortage.
Senator Osman Saifullah Khan proposed that Pakistan’s central bank should stop printing the 5,000 rupee note (worth almost $50) and then phase it out over three to five years. Sen. Khan is from the Pakistan Peoples Party, one of the ruling party’s main rivals.
But he said if Pakistan did make a move to void currency, it would do it better than India.