Business

Should Pakistan discontinue the Rs5,000 currency note?

Published

8 months ago

Farwa

KARACHI: Former chairman of the Federal Board of Revenue (FBR) Shabbar Zaidi on Thursday insisted that the discontinuation of Rs5,000 note and curbs on the physical movement of dollars is key to curbing the cash economy in the country.

The financial expert made these remarks on Geo News show Aaj Shahzeb Khanzada Kay Sath just hours after a fake notification fuelled rumours among the people claiming that the government has decided to ban the note of the highest denomination.

Zaidi maintained that currency circulation is very high in Pakistan and the Rs5,000 note provides convenience in the cash economy, adding that people have kept wealth in their lockers in dollars and Rs5,000, which should be banned.

“What will a person do with cash dollars in Pakistan, if anyone is seen with the greenback, should be arrested until he proves where the dollars came from.”

This is fake. The Govt of Pakistan shall act against the people spreading this kind of fake news to create chaos.
یہ جھوٹا نوٹیفکیشن ہے۔
حکومتِ پاکستان ایسے جھوٹے نوٹیفیکیشن پھیلانے والوں کیخلاف سخت کارروائی کرے گی۔
👇 pic.twitter.com/9yU3DlM5UK
— Murtaza Solangi (@murtazasolangi) September 7, 2023

50% of the people will not encash if they are asked to deposit the note in banks, Zaidi added, and cited the example of India which discontinued the Rs2,000 note some time ago in a bid to curb corruption.

He, however, suggested the authorities give some time to the holders so that they can exchange it.

“I spoke about shutting down exchange companies, now people have understood the reason behind it. The work of the exchange companies should be given to the banks, these companies will be abolished in a year. There are no exchange companies anywhere in the world except Dubai. By establishing exchange companies, the dollar has technically been made the currency of Pakistan.”

‘Discontinuation of Rs5,000 will create uncertainty’

On the other hand, former finance minister Miftah Ismail has strongly opposed the idea, saying the move will only create uncertainty and fear and will not solve the problem we are trying to address.

MIftah Ismail shared that the Indian economy suffered a setback of 1-2% due to this.

The former minister mentioned that people do find ways to avoid restrictions and every note of Rs2,000 was encashed in India.

“It is not proved anywhere in the world that discontinuation of currency stops corruption.”

Opposing Zaidi’s idea, Ismail said it would increase dollarisation.

He credited the appreciation in rupee value to an increase in confidence after the recent meeting of military leadership with the businessmen.

“Smuggling of petroleum products from Iran is necessary,” Ismail added.

Business

Nine months yields Rs66 billion for Pakistan Railways.

Published

4 mins ago

Farwa

They stated that the passenger and goods trains generated the majority of the department’s Rs 66 billion in revenue, with additional cash coming from other departments.

In comparison to the previous year, when 86 trains were in service, Pakistan Railways is currently operating about 96 passenger trains, according to their statement. Comparably, the number of goods trains operated this year reached seven, compared to an average of 3.75 the previous year.

As work on the Mainline-I (ML-I) project gets underway, things will be more streamlined, according to the sources who stated the department stressed that the problem of employee salary delays has now been rectified.

Responding to a query, they stated that only six minor accidents involving no fatalities occurred over the nation’s whole railway network in the previous three months, and that Pakistan Railways had increased preventative efforts to lower passenger train mishaps.

According to them, the efforts made to prevent trespassing at unmanned level crossings and unauthorised sites have resulted in a significant drop in accidents.

The department’s primary concern is passenger safety, thus our workers are constantly keeping an eye on the nation’s railway tracks and thoroughly inspecting the trains, the sources stated.

Business

PIA privatisation: The restructuring plan is approved by SECP

Published

22 mins ago

Farwa

The legal segregation of PIACL, one of the most complex restructuring exercises ever carried out, has reached finality, according to a press release released by the Privatisation Commission on Sunday. This is because the SECP approved the Scheme of Arrangement on May 3 for the transfer of PIACL’s non-core assets and liabilities to Pica Holding Company Limited.

The Privatisation Commission, Finance Division, Aviation Ministry, and PIA have been working together to reform the airline, and this order represents a major turning point in that work.

Turn off the silent
Additionally, the press release said that the plan went into effect on April 30, 2024.

The PSX, Central Depository Company, and National Clearing Company of Pakistan have been instructed by the SECP to enable the seamless listing of PIA Holding Company Limited in accordance with the relevant laws and guidelines.

Business

Pakistan’s gold prices continue to decline.

Published

3 days ago

Farwa

The price of ten grams of 24 carat gold dropped by Rs 1,201 to Rs 205,418 from Rs 206,619, while the price of ten grams of 22 carat gold dropped to Rs 188,300 from Rs 189,400, according to the All Sindh Sarafa Jewellers Association.

Silver, priced at Rs. 2,620 per tola and Rs. 2,254.80 per ten grams, stayed at that level. As reported by the organization, the price of gold dropped by $11 on the global market, to $2,297 from $2,308.