Pakistan prints more money, to replace coronavirus-contaminated notes

The State Bank of Pakistan (SBP) has increased the printing of its currency notes to replace the coroanvirus-contaminated notes. Experts have said that following the decision, it’s likely that inflation would go up, causing prices of essential items to increase. Economist Baqir Jaffari clarified that prices in the economy increase when the bank increases its liabilities and the money supply in the economy without any reason.

He added that as coronavirus has tightened its grip across the globe, countries have given relaxations to credit customers. Pakistan can do the same but it already is in so much debt that it won’t make much of a difference.

Source: Samaa