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Printing money can help overcome loadshedding, suggests Gilani
Gilani suggests printing money to pour into electricity sector, Rehman Malik backs statement.
Gilani suggests printing money to pour into electricity sector to overcome loadshedding, Rehman Malik backs statement. PHOTO: AFP/ FILE
ISLAMABAD: Prime Minister Yousaf Raza Gilani on Wednesday suggested that the government should print currency notes and pour capital into the electricity sector in order to overcome loadshedding, Express News has reported.
During the federal cabinet session, Gilani said, “We can print currency notes and pour capital in the electricity sector in order to overcome loadshedding”.
Gilani’s suggestion surprised ministers present in the session, however, Interior Minister Rehman Malik, while endorsing the prime minister’s statement, said that the “2-3% rise in inflation could be overcome within a few years” and that there was no problem in printing money.
The participants also suggested that the recovery of dues that different sectors owed Water and Power Development Authority (Wapda) could be handed over to Malik to curb the circular debt.
However, this idea was opposed by some ministers, saying that this will cause a dispute between the trader community and industry with Wapda.
Finance Minister Abdul Hafeez Shaikh said that Wapda does not have a system to gauge the amount of electricity needed by different cities. He said that Wapda needs to develop a system to properly distribute electricity within the cities, prioritising on the demand.
Minister for Water and Power Syed Naveed Qamar could not answer a question asked 3-4 times in the session about the capacity of the electricity produced by Wapda.
Gilani says decision on Nato supplies be taken considering national interest
Gilani said that the decision on resumption of the North Atlantic Treaty Organisation (Nato) supply routes will be taken considering Pakistan’s national interest.
The prime minister said that the government has not compromised on its principles in the past and will not do so in the future.
A Memorandum of Understanding (MoU) is likely to be formally approved by the federal cabinet to reopen vital land routes for foreign forces stationed in Afghanistan.
He said that the government does not want to take an “emotional” decision which will not be beneficial for the country.
Reiterating his stance on the right to appeal the Supreme Court’s verdict in the contempt of court case, Gilani said that he is not “scared of any threats” and that he will continue to guard the constitution.
Earlier, Gilani had said that Pakistan’s relationship with 48 countries serving in the Nato cannot be put on stake just because of the US.
On Tuesday, Defence Committee of the Cabinet (DCC) finally gave a go-ahead to lift the almost six-month old blockade on Nato supplies passing through the country.
The supplies were suspended in November last year in reprisal to a Nato air raid on a Pakistani border post that had killed 24 soldiers and strained Pakistan-US relations to the breaking point.
PM briefs cabinet on UK visit
The prime minister said that during his visit to the United Kingdom from May 8 to May 13, 2012, he met UK’s Queen Elizabeth on her diamond jubilee and her reign of 60 years as head of the Commonwealth at the British Deputy High Commission.
He said that he also attended a parliamentary reception held by the speaker.
“I also visited Buckingham Palace for a meeting with Duke of York,” said Gilani. “Apart from the enhanced strategic dialogue review, all major ministers called on me for detailed discussions on various strands of cooperation between Pakistan and the UK.”
The premier said that the warm welcome given to him as an elected prime minister reflects the importance and confidence the UK government attaches to its relations with a democratic Pakistan.
He said that British Prime Minister David Cameron applauded the fact that the current government of Pakistan was working to strengthen democracy in the country.
“His categorical statement that Pakistan’s friend is UK’s friend and Pakistan’s enemy is UK’s enemy was a strong reiteration of Pakistan’s standing and importance in the committee of nations.”
Gilani further said that the UK has vowed to build a deeper, stronger relationship with Pakistan and that that it wants to strengthen relations in the fields of trade, defence, health and education.
“We [Pakistan and the UK] have also agreed to boost bilateral trade,” he said.
Cabinet apprised of CASA-1000 project
While reviewing the status of the implementation of the cabinet’s decisions pertaining to Water and Power Division, the cabinet meeting was informed by Qamar that the CASA-1000 Megawatt project meeting being held in Dubai was expected to make substantial progress.
CASA-1000 is a joint project of Kyrgyzstan, Tajikistan, Afghanistan and Pakistan. Prime Minister Gilani told the cabinet that economic indicators of Pakistan’s economy were moving in the right direction despite the global recession and the devastating floods of 2010 and 2011.
Shaikh assured the cabinet that full financial support will be extended to the Ministry of Water & Power to eliminate unscheduled loadshedding immediately and also to decrease scheduled loadshedding at the same time.
For this purpose, it was decided to utilise the full thermal and hydel power generation capacity in the country.
Correction: Due to an editing error, an earlier version of this article incorrectly mentioned hydel power as hydal power. The error is regretted.
Read more:
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Reader Comments (103)
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what is our national interest?
we hearing this word from last 65 years, But every thing is going wrong with Pakistan
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……..and will someone tell me what is our “national interest”, Mr PM !!!!!!!!
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……………..but what is our national interest and who will put us wise on this? Will and can you, Mr PM???????
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A PM who came to power under a foreign brokered deal called NRO to support the on-going war on terror for a super power….will make decision(s) in national interest….come on gilani sb you must be joking?
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Decision in National interest…………. has that ever happened in the last 4 years.Recommend
Any and all taliban attacks in response to reopening of NATO supply lines will be DIRECTLY on the shoulders of this government and it’s liberal elite supporters. PERIOD.
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Ha Ha Ha… Ha Ha Ha…
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I hope that our Govt. know the real meaning of national interest. They are such a disgrace.Recommend
Nice said mr barkat ali. but nato supply will be restored soon,….. all the decisions have already been taken, in return of restoration of nato supplies, US will help pakistan to boost the economy and IMF will release the next installment.
these things are the part of politics, at the moment we need the money, and we are not in the situation to have the bitter relationship with USA, because india wants to be it happened and make pakistan isolated in the region.Recommend
And who will define NATIONAL INTEREST
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Nation consist of 200 plus families only. 200 are rulers of this country and their wealth and families are living, enjoying, in NATO countries. This is their only national interest.
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After the SC judgement episode does he expect to be trusted by the common man in Pakistan. This guy has two faces. He is supposed to be a protector of Pakistan’s honour, something he has already sold for his kursi.
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What is the national interest these supply (NATO) are using against Pakistan and our Muslims. are you believe that it will use for Afghan help…? i don’t believe.
Please wake up and open your mouth tell to our stupid PM President that we will stop this NATO routs also bring out Pakistan from this unknown WAR.
Please please please stop these peoples from NATO rout resumptions.Recommend
He is a funny man … don’t mind him please !!!
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ya , u are right Mr PM ,,, but i think u r talking about the national interests of US ??? is’init????Recommend
These supplies are using for against Muslim and Pakistan. do you want to give an aid to some one and then attack on your home. Like drone attacks
those who lost father, brother, sister, mother, son. We can keep them silent against USA. No no no they are becoming the suicide bomber and targeting our own peoples.
We are getting aids from these Nato countries but these aids are killed our peoples
Please think about it. You need aid or need safe life safe PakistanRecommend
Dear Hamid,
Your are absolutely right this is their national (family) interest.Recommend
Who says that Raza Gillani is prime minister of Pakistan. He is no more Prime Minister of Pakistan. If he think he is the prime minister of pakistan and ruling on behlaf of Gen.Kiani, then Liani should go under Court Martial. Gillani should be removed asap. He is the enemy of Pakistan.Recommend
NATO supply line should be block forever as they never respect our freedom. This GOVT is corruptest GOVT in the history of Pakistan and we never expect national interest from this GOVTRecommend
What national interest? Have we open NATO supplies or going to open?
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Convicted PM’s usual sentence…. NATIONAL INTEREST… huhRecommend
@ayaz bukhari(awaz e sindh):
“we are not in the situation to have the bitter relationship with USA, because india wants to be it happened and make pakistan isolated in the region.”
Don’t raise India bogey here. It’s give and take relation between Pak and US.
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@barkat ali:
national intrest mean secrifise only for public of pakistan not for governanceRecommend
national intrest mean secrifise which has been countinig since long timeRecommend
I was not a supporter of IK or PTI, but from now on i will support IK. He has principles and have constantly rallied against the drone attack and for blocking of NATO route. Now, PPP and khakis have already gave into USA’ carrots and threat. But not IK.
I know IK/PTI will bring its tsunami out and block the NATO supply as he had promised. So, far no word from PTI or IK!! I am afraid if IK/PTI falls in line with establishments desire to open NATO supply, then PTI would lose its moral high ground!
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National Interest means ( PERSONAL INTEREST )Recommend
Well said Mr. Crime Minister. There was no principle in the past and not at present.
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well Gilani sb , go ahead . Now the taliban hiding in Pakistan will come out and Pak army will treat them accordingly . A wise dicision .
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Print more Money ???? I think Mr. Gilani was intoxicated when he said this. Does he understand the consequences of printing more money & that too in Billions. Already Pak economy is in shambles and printing more money will bring us to our knees. It amazes me to hear this, its absolutely absurd.
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Wow !!! I mean WOW. If I express my true feelings here, ET will not publish my comments. This is PM’s vision and understanding of economy. God help us and save us from these clowns !!!!
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I don’t know whether to laugh or cry at these inane statements being made by our worthies. They are imbiciles.
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@ LionOfPunjab, Khakis stoped NATO supplies and now they have restored it. Government is busy in corruption. It has no time for these complicated issues. This is the reason Imran and Mullahs who were making noise against NATO supplies are silent over restoration. Only PML(N) is firm on its stand against NATO supplies. You should have joined PML(N).
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Last para – “For this purpose, it was decided to utilise the full thermal and hydal power generation capacity in the country.”
Please correct “hydal” to “hydel”. Thanks.
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Ever heard of printing money creating inflation?
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our Govt leaders should have economic workshops… i meaning printing currency note would not have any impact????? where do these guys think from??? what are they thinking???
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Man…. national interest is loto tay phuto….They are gone mad …
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For a moment I thought I was reading a headline from “The Onion”. No Mr. PM, printing money will not solve load shedding. However, you have reminded us all that you need to go back to school and attended Economics 101.
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they will do each every thing for elections.. God save Pakistan.
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You cant print dollars.
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@F Khan: “A PM who came to power under a foreign brokered deal called NRO to support the on-going war on terror for a super power”
Please get over with it…. Four years on and you are still stuck in the past. The truth is PPP defeated its opponents fair and square, whether you like it or not, or whether your CM Shahbaz Sharif accepts it or not.
Another newsflash for you, PPP will be winning the next general elections as well. Pakistanis are fed up with the terrorists killing their children, women and men, and they won’t vote for the parties without a clear stand against them.Recommend
For the last four years, PPP Government has already printed money day in and day out. Another 300-400 billion circular debt injection will shred the economy to tatters.
I am surprised the Finance Minister listened to the foolish idea and did he pass any comment?
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Clap Clap: i am impressed with Mr Gillani Idea. You can expect anything from this Man now. The recent Interview where he said why dont they left Pakistan who stops them from leaving the country was shocking.
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Guys, would you pls pledge not to vote for Gillani and other looters in coming elections….. This could only save us, otherwise, we have nothing left…. no recources, no economy, no respect and no military might….
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@ Osama
This ruling lot will be voted in again from the rural constituencies as evident from the various by-election results. We, the urban lot can blog but unfortunately constitute a minority.
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printing money is our national interest…hah
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PRINT MORE CURRENCY NOTES.......WOW..WHAT A SOLUTION
RecommendWho does not know the value of these 3rd class politicians which are elected by the ignorant people. If the people are fully awared they will not grab in their trap. But they dont want the development in education feild due to the fear that it can demolish their Empire if the people became wise and educated.
If the people want to get rid from these Politicians then they will have to think about their livelyhood for 5 years not for one month.
They will print the currency and fulfill their wrong and ugly intension and increase the burden on poor people who elected them.Recommend
I think most of the people don’t even realize where this is leading to.
We will have MASSIVE inflation once these notes are printed.
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nothing new, this happened in India,Britain ,America gulf states and almost in all countries
Salute to PM for having the courage to face upto the realities of life, A Poor country like Pakistan can not have every thing for nothing
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Typical 3rd World response to economic issues — and then they wonder why it takes a wheelbarrow to carry around enough of their worthless currency to buy a loaf of bread.
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Mr.Gilani is a very good economist. The Pak government can print $ instead of Rupees. People also be permitted to print their own required currency. How nobody got this idea till now. Pakistan is having a bright future with this type of leaders and we will be richest country in the world.
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My question to Mr. Malik is that has any Govt. present and previous, ever been able to counter the effects of increase of inflation ‘in a couple of years’, due to our constant and regular deficit financing in the past? Who struggles with inflation – a common man, not these parliamentarians who dont spend their money any way, it is all stashed out side. Reminds me of someone, in Pakistan parliament, once suggesting reduce the voltage from 220 to 110 and the electricity will be doubled. May Allah have mercy on us.
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What? Printing Currency Notes is the solution to Load shedding. * Face palm *
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As a matter of fact this is the sensible idea. As remittances come to the country, govt should print equivalent amount of money.
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Our PM does not know the disastrous consequences of inflation.
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The ‘printed money’ is more than likely going to end up going towards buying political influence and votes in the run-up to the elections – and pray tell us Mr. PM, what exactly is the PPP strategy to increase State revenues and enact reforms to prevent yet another circular debt situation from rising again?
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Yes let everyone print currency notes… Poverty will be gone forever
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So these are supposed to be the best minds:
PM: print more money and give Rehman Malik more power to collect dues.
Naveed Qamar wasn’t even prepared to the meeting.
I am going to give an alternate solution and please Express Tribune put this on the front page on exactly the copy PM reads (if he does);
Curtail corruption i-e bijli chor in Pakistan, that will save you a lot of money and increase efficiency. Lay off useless workers and it’s about time someone think of cost synergies. Pessimistic view would say half the problem is gone; for the other half, issue a revenue bond and pay off in time.
WOW These guys don’t even care to prepare for the meeting.
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@dv sikka: You talk like as if SC is the purest of pure; our so called free judiciary chair Iftikhar chaudry took oath twice under martial law rule. Hence my argument you can’t back one bad guy and criticize the other. I am in no way supporting PM, just stating a fact.
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Why not bring out money from the pockets of zardari, gillani, gillani`s sons and many such corrupt elements in this most inefficient and incapable government in the history of Pakistan to come out of this economic crisis.
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Subhan Allah, Our PM is full of intelligence!
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What surprises me is that most comments here are cut off from reality (those discussing national interest). Guys you realize we are up due for next IMF tranche and a payment due next year. The payment is huge it could make you go bankrupt if you don’t pay it. Their is no way around your budget because we as a nation are tax evaders and we do a good job at that. So by national interest – my take – you will starve financially. Just to give you an example; African, sub Saharan countries can’t feed their population. Hopefully no one will reply with muslim ummah this that, chief justice this that, islam this that, pti this that…. bla bla bla. Thank you.
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Outrageous suggestion by the PM. Most outrageous because it is from the PM> If Pak does this, then it will set the trend for future govts, to print money as they seem fit. It will be become like the african currencies one day. 1 Million Pak rupee will be equivalent of 1 Indian paise.
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He doesn’t give a damn about inflation,
which will hit the poor the most.
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Yes, print more money so that inflation can soar through the roof…and majority of pakistani’s wont be able to buy basic necessities
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Is our PM that stupid and ignorant? Can’t believe it…
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In Pakistan the definition of National interest is:-
National Interest = Politicians interests + Corruption Mafia Interest – Pakistani people interestsRecommend
Are we interested in a nation?
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The best things that the government can do for national interest is to quit government.Recommend
No Jobs, terrible education system, business sector on the verge of collapsing, no water, no electricity, inflation is at the highest peak, law and order out of control, corruption at the highest level, PM cabinet as over 100 ministers and he is talking about printing currencies. WOW.. Our convicted Prime Minister and Interior Minister want to print more Pakistani currencies. Seriously, I wish he had taking a Economics 101 in his college days, sorry they never went to college.
Wake UP people of Pakistan.. Time to stop supporting your corrupted leaders. If we want change, then we need to fight for the change.. We need to stop supporting the crook leaders, Zardari’s, Nawaz’s, Gilani’s and MQMs..
Let’s fight for our rights..
Concern Pakistani
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Lol Malik says printing more money would only increase inflation by 2-3 percent I think its likely to be much higher when we are talking about 300 billion circular debt! Gilani’s statement typifies his urge for a quick fix before election time so he can claim he solved the loadshedding crisis! What he doesn’t realise is that on the other hand he will further cripple an ailing economy! But Gilani isn’t interested in Pakistan’s long term interest! Recommend
I never heard such a asinine statement but what could you expect from these incompetent who are preaching printing money and contribute to the already burdened masses’s misery by fueling the inflation. They are talking now of investment in the energy sector, where the heck were they for the last 4years,nothing solid was done for the long run basis but they were good at short run solutions because they got the kickbacks and bribes from these deals, even the Asian and world banks warned them not to do it. People wake up and throw this looter out for a long long time to come otherwise you will have the same year after year.Recommend
There is not a single post above that has implied or otherwise shown any understanding of the implications of seigniorage from the angle of monetary economic theory. Sad.
Granted, Gilani’s idea is ‘silly’ – to be kind – given the present economic climate. Inflation however, for those of you who are not familiar with monetary economic theory is essentially a down-payment of taxes on future productivity. Excessive money creation is obviously not a good thing in the very short run because of the welfare losses that it creates, but if our economy can handle it (i.e. future growth looks good) then, given the right circumstances, it is alright.
While I think Gilani is a disgrace, readers should not be so quick to dismiss everything he says. Base your criticisms on some fact rather than speculation. Ignorant banter about corruption, bribery and general frictionary inefficiencies are not a rationale Recommend
When did Rehman Malik or Gilani become economists? They do not know what they are talking about. The rupee will be Rs 200 per US dollar if they follow this advice. But then when did they care about the country or the masses. They care for themselves only.
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Printing Notes is easy but what about its backing. You have crossed the Fiduciary line. What is the Market Value of Pakistani money. Your grin is not going to help the people of Pakistan,
If you have to print notes go ahead print it even on water carrier’s bag. Before giving such statements please please think twice.
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Kia baat hey hamaray PM sahib ki. Solved all the problems by just printing the money. You people should thank God for providing us such a visionary PM.
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Why not use the new “transit fees” to pay off the circular debt?
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@Salman Khan:
I 100% agree with you Salman. I also suggest that we should have a national thanks giving day for have such a visionary PM.
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With leaders like him, who needs enemies.
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What? Is he out of his mind? Printing money = more inflation. What does he want? Put us into hyperinflation?
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Liberal thought process in action.
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@SM:
having dollar at 200 doesn’t mean it is bad. It could very well mean we can triple our exports hence more jobs. Question isn’t about printing money and removing circular debt. Question is even if we do that it is going to have on impact on functionality of WAPDA; hence you have to solve the core issue reform wapda.
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If printing money can solve Pakistan’s problems, then what’s the issue ?
Are you short of paper ?
Ask people to bring paper and your press can convert them to currency notes.
Everyone will be rich and Pakistan will be richest nation in history of the world.
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Dear PM – Stop minting money can also save this nation from load-shedding – also our beloved PM please note in case no one told you that printing money without following the required banking procedures will lead to hyper-inflation, devaluation other economic issues!
So stop looking for more short-cuts, already you have sold our national dignity and blood of our people to secure you political interest. Use the blood money now and run the turbines, but this nation also know how good are you and your fellow friends including our dear President when comes to handling hard cash
May God help us save Pakistan from such ignorant, corrupt, unethical and unwise leadership in future.
Pakistan Zindabad Recommend
Pak PM and IM are the true followers of Uganda’s former President Idi Amin a well known dictator , who shot dead his Reserve bank governer for not printing more money and personally went to money printing press and got the money printed at gun point. However, printing more money has distinct disadvantages ie in layman terms, if the supply of money goes up, the supply of goods go down. Increase of money causes the prices to rise and inflation would go up to un-controlable proportions. If this was the solution every country would have adopted it but Pakistan is different and who knows that this out of box idea by its genius rulers may solve all problems facing this country. Recommend
Pakistan is blessed with genius rulers.
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If by printing money the PM means creating oil out of thin air, I am all for him. Maybe the forces of democracy can do that.
Mumbrah ha ha ha ha
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People of Pakistan really do know as too how to pick their leaders !!!
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OH MY GOD, Does his Cabinet not contain an ECONOMIST, with little common sense ?
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Which currency note do you have in mind to print Mr prime minister?If it is Pakistan currency better take some advice and if need be help from Zimbabwe .Their rate of inflation is over 1000 percent.
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@Hedgefunder:
we’re still at 101 level so yeah !!!
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@Moise:
“You cant print dollars.”
That is exactly what he meant by printing “currency”. What is the use of printing Pak rupees? Would any foreign firm accept rupees for installing power plants?
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@Salman Khan:
“Mr.Gilani is a very good economist. The Pak government can print $ instead of Rupees. People also be permitted to print their own required currency. How nobody got this idea till now. Pakistan is having a bright future with this type of leaders and we will be richest country in the world. “
Good sarcasm! However, as for the idea, Pakistan has indeed been printing rupees, but Indian rupees for the past many decades. I guess you can fault them for not thinking about printing dollars!
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Let us hope he meant printing Pakistani currency
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Zardari & Gilani should bring back looted money of the nation from Swiss banks, load shedding problem will be solved.
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“Mujram & Saza Yafta (Convicted) PM statements are really funny…
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Much the best,excellent and impressive statement given by convicted ex-PM Gillani and indirectly he wants to increase more and more corruption money so that he could lead kingly life after the government’s tenure completion.
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Someone buy this Prime Minister ‘Economics for Dummies’
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I would like to strangle him to death. National interest is nothing, its all about gillani and zardari’s interest.
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You need electricity 24×7 to print money. Duh !
Gilani makes Nawaz Sharif look like an economics Nobel Prize winner.
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India has already extended 500 MW /day power supply for the purpose , despite of shortage at home .
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At least he is secular, that great magic-wand which will solve our all problems.
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Sounds like Mr. Gilani wants to run Pakistan in the American style. The American system is one of printing money and going broke. Due to printing money American domestic debt levels as of yesterday were $15,718,885,948,588.08 (nearly 16 trillion) and increasing by $3.96 billion per day. Total U.S. debt has reached astronomical proportions and America is spending $120,000 per second. I do not think that printing money to get out of trouble is a good economic solution.
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