A notice announcing the end of production of the Rs. 5,000 currency note effective September 30, 2023, is making the rounds on social media.
However, the Ministry of Information and Broadcasting’s (MoIB) Fact Checker account has branded this story as false and without foundation, asserting that it is not only illegal but also does the country harm.
In addition, there have been no official statements from the Ministry of Finance or the State Bank of Pakistan (SBP) on this matter. This implies that the Rs. 5,000 currency note will continue to be in circulation in Pakistan.
It is pertinent to mention here that the Rs. 5,000 currency note was introduced in Pakistan on 27 May 2006.
Earlier this year, a top energy economist, Ammar Khan, suggested demonetising the Rs. 5,000 note, which is the highest banknote in circulation in Pakistan.
He said that a similar demonetization strategy worked well and improved tax collection in India when it stopped the circulation of Rs. 500 and Rs. 1,000 currency notes.
India demonetized its currency in November 2016 by removing the Rs. 500 and 1,000 notes from use.
Although more digital transactions were made both during and after the demonetization phase, despite the move’s intention to eradicate black money, numerous reports indicated that it was a failure.