Govt prints Rs846 billion notes to cover expenses
The government found a new way to cover its expenses as it has issued notes worth Rs185 billion during the third week of May and a total of Rs846 billion in just nine weeks since the coronavirus pandemic, reported 24NewsHD TV channel on Sunday.
As the distribution of money to the poor and other government expenditures picked up pace due to coronavirus, the government started printing new notes. The printed notes were worth more than the relief package announced by the government.
According to the State Bank of Pakistan (SBP), new notes worth Rs185.10 billion were issued during the third week of May and a total of Rs845.88 billion were printed in just nine weeks after the outbreak of the coronavirus pandemic in Pakistan. During this period, the total value of notes in circulation in the country has reached a record level of Rs67.82 trillion. During the current financial year new notes worth Rs1.34 trillion have been issued which is 107 percent more than from last year.
The economists believe that the issuance of new notes is a major cause of inflation in the country.
According to another report aired by 24NewsHD TV channel on May 16, the PTI government had made the coronavirus an excuse for printing currency as new notes worth Rs21.83 billion were printed daily on average during the first week of May.
In this scenario, the value of currency in circulation reached the mark of around Rs64.46 trillion for the first time in Pakistan’s history.
Amid the distribution of money among the poor and the rise in other government expenditure, the government opted to printing currency, as the State Bank said new currency worth over Rs152.79 billion came into circulation in the said period.
During first eight months of the financial year, the government had issued new currency bills worth Rs338.90 billion. It means there has been an increase of more than 132 percent in printing currency in the next 10 weeks.