The Ministry of Finance has categorically denied rumours regarding the demonetisation of the Rs5,000 banknote in a press release issued on Monday.

A statement issued by a spokesperson for the ministry said that the government has neither taken such a decision nor is there any justification to do so.

"The current denomination of highest value notes in Pakistan, ie Rs5,000, is significantly smaller compared to those of major currencies such as the $100 note, Euro 200 and Pound Sterling 50. During 2015-16, only 17% of the notes printed were of Rs.5000 denomination," the statement further added.

It also explained that, "Given the continuing use of cash in transactions, the government believes that discontinuation of the Rs5,000 note will adversely affect the efficiency of exchange in commercial activities and be a source of major discomfort and anxiety for the people."

The ministry further stated that it is pursuing the National Financial Inclusion Strategy in association with the State Bank, through which digital transactions and branch-less banking will be brought to the doorstep of people.

This is expected to significantly reduce people's dependence on currency, it said.

Last week, the Senate had passed a resolution calling on the government to withdraw the Rs5,000 note from circulation.

The resolution was moved by Senator Osman Saifullah Khan of the opposition Pakistan People Party.