The government has resorted to continuous printing of currency notes to generate liquidity and cover expenses in financial year 2012-13, causing core inflation accelerate to 11.4 percent in June 2012, according to Confederation of Asia-Pacific Chambers of Commerce & Industry (CACCI) Vice President Tariq Sayeed.
He said that Pakistan has printed new currency notes worth Rs592 billion during June 2011 to July 2012, which is not the solution to overcome the problem, adding that the government resorted to continuous printing of currency equivalent to 2.4% of the GDP to generate liquidity.
He said that unfortunately, the State Bank of Pakistan is being treated as a printing press for making currency notes worth billions of rupees every day when it should be taken as an institution providing monetary stability for the country. This simply shows lack of proper economic planning, Sayeed said.
Published in The Express Tribune, July 29th, 2012.