KARACHI, PAKISTAN, June 8.-Pakistani citizens, close to panic, tried to crowd into banks today to turn in huge amounts of paper currency suddenly without value as the result of a Government decree last night.

The Government removed from circulation all 500 rupee and 100-rupee notes worth respectively $106 and $21 at the legal exchange rate. These two types of bills represent approximately 60 per cent of all Pakistani currency in circulation.

According to the Government, militant Bengali separatists who briefly controlled the administration of East Pakistan in March left the banks of East Pakistan empty when the Pakistani Army attacked to crush the independence movement. The amount of money in their hands represented about one-tenth of the nation's currency in circulation.

Long lines outside banks gave way as mobs of sobbing women sought to force their way inside .

FAMILY HAS NO MONEY

"My husband was paid his 300-rupee salary yesterday in 100 rupee notes," one woman said. "We have no money now and how am I going to get milk for my baby?"

The tourist business was severely affected. Arguments provoked when hotel cashiers refused to accept the rupee notes in payment of bills and customers in turn refused to accept bills.

The banks gave receipts for the notes but there was no indication when the new currency would be given to citizens. Some bankers speculated that it might take a month or more.

Serial numbers of all bills are being checked against a list of bills taken from the East Pakistani banks, and anyone seeking to exchange such a bill is likely to be arrested, whether or not he had anything to do with looting.