Rs5000 banknote proposed to withdraw from circulation

Rs5000 banknote proposed to withdraw from circulation

KARACHI: A former chairman of Federal Board of Revenue (FBR) has recommended the government to stop the circulation of Rs5000 banknote and phase out in circulation the banknote within one year.

Syed Shabbar Zaidi, former FBR chairman, submitted his proposals for budget 2021/2022 to Prime Minister Imran Khan.

“There has to be gradual evaporation of Rs5000 banknote. A time limit be prescribed up to which Rs5000 note will be valid say June 30, 2022 and in the meantime the same can be exchange with bank. This is completely different from Indian Scheme.”

Shabbar Zaidi served the FBR as chairman during May 10, 2019 to January 06, 2020. Being a FBR chairman from private sector, he had taken major decisions during his stay despite bureaucratic hurdles.

The suggestion to stop Rs5000 banknote from legal tender has importance because Prime Minister Imran Khan had on many occasion lauded Shabbar Zaidi.

The proposal for withdrawal of Rs5000 banknote was not new as it had been submitted time to time for stopping corruption and black economy.

Sources said that the office of the prime minister had forwarded the proposals of Shabbar Zaidi to the finance ministry for further consideration to make part of final proposals for budget 2021/2022.