On October 13, 2024, Dr. Shahid Rasheed Butt, former President of the Islamabad Chamber of Commerce and Industry (ICCI), expressed concerns that the Rs 5,000 banknote is a significant barrier to Pakistan's economic progress. He argued that this high-denomination currency note fosters corruption and strengthens the underground economy, which undermines legitimate business practices [6b843caa]. Butt praised the non-political finance minister for his efforts in steering the country away from economic collapse, emphasizing the importance of continued cooperation with him [6b843caa].
Butt also criticized government interventions in the wheat and sugarcane sectors, suggesting that such actions lead to recurring crises. He proposed that enhancing trade with neighboring countries could help alleviate vegetable shortages, which have become a pressing issue in Pakistan [6b843caa]. He highlighted that there is currently Rs 9.5 trillion in circulation, indicating a concerning ratio of currency in circulation and the prevalence of illegal transactions in the economy [6b843caa].
In a comparative analysis, Butt noted that Pakistan's currency system is less stable than that of the United States, where the largest banknote is $100. He argued that this difference contributes to greater economic stability in the US, suggesting that Pakistan could benefit from similar reforms to its currency system [6b843caa].
These insights come at a time when Pakistan is grappling with a multitude of economic challenges, including the recent approval of a $7 billion loan from the International Monetary Fund (IMF) aimed at stabilizing the economy amidst ongoing crises [8f1c52e8]. While the IMF program includes significant tax increases and fiscal measures, the underlying issues of corruption and structural inefficiencies remain unaddressed, raising questions about the long-term viability of these solutions [ccdf0ae3]. As the government navigates these complex challenges, the debate over the impact of high-denomination currency notes like the Rs 5,000 will likely continue to shape discussions about Pakistan's economic future.