Currency notes are the only way to circulate the country’s wealth among its masses. As economy grows the spreading of money increases resulting in more sustainable financial situation of its population. A country’s financial strength is calculated based on its foreign reserves, that is how much foreign currency its holding currently.
For Pakistan the economy has dipped from past 20 years due to various political, geographic and export conditions. That is why we have saw large currency notes of 1000 and 5000. Till 1980s even 1990s the large currency note was of 500 while 1000 was still there but hardly there for common people except large companies and small group of rich people.
A couple days earlier India announced that their 2 top currency notes will be no more to cope with illegal money however the direct impact was on common people who were standing in long lines for several hours even for days as situation is now.
So what if Pakistan decided to stop circulating 1000 and 5000 notes?
A senator has filed a petition in parliament to ban the 1000 and 5000 notes but did not convey any alternative of how to achieve this. These notes are circulating in large numbers specially 1000. Because Pakistan is low on foreign reserves so it has large amount of its local currency that people are carrying. This would result in immediate shortage of currency notes because replacing a 1000 or 5000 note would require several new notes of smaller amount. So idea is fine but its implementation is most tough.
As Government takes huge debts from the Banks which are obviously in local currency that will make the common people suffer the most. The politicians and group of rich people never carries local currency, they always have foreign currency reserves. Same is for India as such things can only protect the rich and give hard time to poor people.