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.
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@Ali The sooner the better. If Pakistan leaves AJK, that will be the best thing that happens to both economies. Embarking on the road to self-sufficiency,,,,,,,
Dear indian trolls, please have the decency to use Indian names at least :d you guys are so obvious :d
Congratulations ! How is this printing backed by? Continue on this hair brain scheme and Pak Rs will be $1.50 before the year is out !
@ Tanveer... Its time not to include AJK in budget allocation. If AJK is separate (according to Mr Tanveer Opinion). Why we r allocating portion of budget to them. They should learn to self generate their income source n also not to depend on Pakistan for any thing.
RS 592 Billion? Where did u get that figure from? Please count the cash injection via OMO by SBP in the REPO market. I tried to keep up the count from jan to may and it was exceeding Rs 1.6 trillion!
Time for AJK to resort to another currency before it introduces it's own. It's importing economic ills from Pakistan for 'free'.