The Minister stated that Demonetization of Rs. 5000 notes will increase sufferings of the business community.

Last week, Senate passed a resolution seeking withdrawal of high denomination Rs 5,000 currency notes “in a phased manner” to curb the flow of black money.

Senator Usman Saif Ullah Khan of Pakistan Peoples Party (PPP) tabled the resolution that was endorsed by the majority of lawmakers in the Upper House.

The resolution said that the withdrawal of Rs 5,000 notes will encourage the use of bank accounts and reduce the size of the undocumented economy. It said the withdrawal of the currency notes should take place within three to five years in order to purge markets of the notes.

Law Minister Zahid Hamid, however, said that the withdrawal of the notes will create crises in the market and the people will resort to foreign currencies in absence of Rs 5,000 notes.

He said that currently 3.4 trillion notes are in circulation in country of which 1.02 trillion notes are of Rs 5,000 denominations.