Total number of new banknotes printed by SBP from 2018 to 2022

In the literal sense, the number of tickets printed from July 1, 2018 to June 30, 2022 amounts to Rs 7,201,480 million.

However, the literal printing of banknotes does not necessarily mean an increase in the overall cash flow of the economy by the same amount.

The major factors that determine the amount of banknotes printed by the State Bank of Pakistan (SBP) are the replacement of soiled and damaged banknotes, the maintenance of stock by the SBP, and banknote stocks held by commercial banks.

Second, in terms of the growth of currency in circulation (CiC), which increases due to the issuance of currency by the SBP against (i) government checks drawn on the SBP (ii) demand for foreign currency from banks.

In addition, the natural growth of CiCs also occurs due to increased economic activity, the cumulative nominal GDP growth for the period was 53% or 23 trillion.

The expansion of currency in circulation from July 01, 2018 to June 30, 2022 is as follows:

Third, in an economic sense, money printing is broadly defined as the direct borrowing of the government from the central bank.

In this regard, outstanding government borrowing from the State Bank of Pakistan stood at Rs 5.07 trillion as of June 30, 2022 compared to Rs 3.54 trillion as of June 30, 2018.

The above information was shared with the National Assembly by Minister of Finance and Revenue Ishaq Dar on October 14, 2022.

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