Dharshini RDA 
A brand new recommendation has been submitted to the upper house of parliament Senate Standing Committee on Finance regarding ceasing the circulation of the Rs 5,000 note. Hazards associated with the said currency note were pointed out by some members of the Senate of Pakistan the PTI’s Senator Mohsin Aziz, who argued that the circulation of this currency note would fuel the increase in the so-called cash economy. The proposal has drawn a lot of controversy about what it might mean for the economy and transactions in everyday life.
A Move to Curb Cash Economy
This draws the attention of the House towards the fact that sovereign notes such as Rs 5,000 notes have supported a cash economy in Pakistan. According to him, this move fuels non-transparency of financial transactions. FBR has been heavily challenged for less effort towards ensuring financial inclusion and encouraging people to adopt digitization adoption. The reform, if adopted, will bring the country close to a more extensively controlled economy by limiting the use of huge cash-based deals.
However, the concept has left its controversy. Critics of the decision have insisted that while the Rs 5,000 note is an ideal form of currency for large-value transactions hence discontinuing it will add more inconvenience in transactional activities. Thus such changes could increase the discomfort of the public regarding the monetary policy as Pakistan goes on with the inflation fight. This plan has fostered further discussions towards understanding the conflict between physical and electronic monetary networks.
Changes to Tax Laws and Banking Accounts
Besides, the Senate Standing Committee has endorsed another important amendment to tax laws apart from the currency note proposal. This amendment aims at preventing people who have not filed income tax returns from managing current or savings accounts. As outlined by Senator Aziz, with the new law in place, only unregistered persons will be allowed to continue to use ‘Asaan Accounts,’ which also eschew elaborate features denying its user many elaborate transactional privileges.
According to the FBR, the government will not burden most of the people since only 10% of the population will be impacted. The move is expected to enhance tax compliance and reduce evasion since only those people who file their taxes will be allowed to engage in banking activities. The necessity of this decision is criticized by the opiners who state that many people from the unregistered population will cease to recognize official actions as suitable for business.
