The Senate adopted a resolution to withdraw the Rs5,000 note from circulation on Monday.
According to a private news channel, Pakistan Peoples Party (PPP) Senator Usman Saifullah tabled the resolution, arguing that the note was being used in illegal transactions and should be withdrawn.
Opposing the resolution, law minister Zahid Hamid said the move would have repercussions on the economy and the masses in general, as is unfolding in neighbouring India.
At this, Saifullah said the banknote shouldn’t be withdrawn at once as was done in India, but halting its printing and withdrawing the notes in a time span of three to five years. The House later adopted the resolution.
The resolution was submitted by the PPP lawmaker on November 10, seeking to reduce illicit money flows and encourage people to use banking services.
The move came after India’s recent demonetisation drive, in which notes of 500 and 1,000 rupee notes were pulled from circulation.