The Governor assured the public that the transition to the new notes would be gradual, aimed at avoiding disruptions and preventing public panic – challenges that have been witnessed in other countries undergoing similar changes in the past.
However, some financial experts are speculating about the potential inclusion of demonetization for higher denomination notes, such as the Rs 5,000, as part of this initiative to curb the circulation of counterfeit money and address issues related to the black money market.
Highlighting the impact of illegal black money on Pakistan’s economy, experts suggest that the ease of circulation of higher denomination notes contributes to the problem. Experts believe that the introduction of new currency notes will not only enhance reliability in circulation but also instill confidence in businesses.
Acknowledging these concerns, a banker emphasized the importance of ensuring a smooth implementation of the new currency notes. He stressed that the central bank must take measures to prevent inconvenience to the public and businesses during this transition period. As Pakistan prepares for this significant update in its currency system, the hope is that the enhanced security features will strengthen the integrity of the monetary system without causing unnecessary disruptions.
On Monday, the State Bank of Pakistan declared that the Monetary Policy Committee (MPC) has opted to uphold the status quo by maintaining the key policy rate at 22 per cent. SBP Governor Jameel Ahmad, during a press conference, said, “The MPC has decided that the current policy rate will persist.” He highlighted that the committee acknowledged the enhancement in the external account position. Ahmad also pointed out that, despite payments totaling $6.2 billion, there has been an improvement in foreign exchange reserves.
(Inputs from PTI)
