عمران خان نے جو 5.37 فیصد گروتھ کی ہے اس سے غربت میں اضافہ ہوا ہے۔ پٹواری

[arifkarim]

Printing of currency is not a solution else US might have done this instead of having over USD100tr loan.

Central banks of US, UK etc "print money" all the time. They do it primarily through the process of quantitative easing:

What is quantitative easing and how will it affect you? - BBC News

The Bank of England begins to unwind a key support it brought in during the 2008 financial crisis.

www.bbc.com

US instead of printing money directly to finance its record debt and deficits issue treasuries and securities that foreign investors such as China and Japan can buy with their own trillion dollar reserves. This way foreign investors fund US govt indirectly and make sure that USD remains global reserve currency

Net Foreign Assets (NFA) Meaning & Creditor/Debtor Status

Net foreign assets (NFA) determine a country's indebtedness status by measuring the difference in its external assets and liabilities.

www.investopedia.com

The US is increasingly a net debtor nation. Should we worry?

At the end of 2020, Americans owed $14 trillion more to the rest of the world than the rest of the world owed to America, according to the latest reading on the nation’s Net Investment Position (NIIP). How did we get here? Is this increase in net foreign liabilities a cause for concern?

www.brookings.edu

 

[arifkarim]

Let's assume if government wanted to borrow this USD from commercial bank, will they pay them in Pak Rs or USD? Also what will be source of money of GoP to pay back loan.

Govt cannot borrow from local commercial banks in foreign currency such as USD. By law Pakistani commercial banks can only give loans in Rupees. They are however allowed to keep foreign currency in foreign currency deposit accounts. This infamous law was made PM Khota Biryani Sharif back in 1992 and has been the major source of money laundering since.

Pakistan's laws facilitate money laundering, tax evasion | The Express Tribune

Economic Reforms Act, Income Tax Ordinance, prevent authorities from taking action

tribune.com.pk

Govt urged to revisit Economic Reforms Act 1992

A review of the immunity scheme would to check outflow of foreign exchange and to arrest the depreciation of rupee.

www.dawn.com

 

[Okara]

Govt cannot borrow from local commercial banks in foreign currency such as USD. By law Pakistani commercial banks can only give loans in Rupees. They are however allowed to keep foreign currency in foreign currency deposit accounts. This infamous law was made PM Khota Biryani Sharif back in 1992 and has been the major source of money laundering since.

Pakistan's laws facilitate money laundering, tax evasion | The Express Tribune

Economic Reforms Act, Income Tax Ordinance, prevent authorities from taking action

tribune.com.pk

Govt urged to revisit Economic Reforms Act 1992

A review of the immunity scheme would to check outflow of foreign exchange and to arrest the depreciation of rupee.

www.dawn.com

Then what will be use of USD for the local commercial banks? Also in order to give loan to government of Pakistan in Pak Rs from where they will get money? When government can print currency why do they need loan from commercial banks in local currency?

 

[arifkarim]

Then what will be use of USD for the local commercial banks?

Local commercial banks keep foreign currency deposits for various reasons. The most obvious one is to keep the remittances money. They along with money exchangers can profit from it through currency price fluctuations between USD / PKR in the open market. Then there are international investors (Roshan Digital for example) who wish to invest in Pakistan and they keep their investments in such foreign currency deposits.

Roshan Digital Account inflows reach $2bn in 11 months

Since its launch in September last year, the RDA inflows have been increasing as more and more banks joined the scheme.

www.dawn.com

 

[arifkarim]

Also in order to give loan to government of Pakistan in Pak Rs from where they will get money?

Local commercial banks in Pakistan operate on the similar structure as other commercial banks of the world. Banks are allowed to issue loans (credit) as much as the borrower is able to return. Since govt collect taxes, commercial banks can loan risk free to govt because they know govt would be able to return the loan through taxation. That's why govts in the past became reckless and borrowed too much, hence presently very high debt repayments in the budget

 

[arifkarim]

When government can print currency why do they need loan from commercial banks in local currency?

How many times I must tell that govt cannot print money? Only state bank can on behalf of govt. After passing the new laws, state bank is no longer allowed to continue this practice

 

[Modest]

Calling Bughaz Imranis to destroy you now
Rajarawal111 shujauddin LeanMean2 Siberite Tit4Tat

No bughaze Imrani, they are just paid Patwaris doing their job.

 

[Saboo]

No bughaze Imrani, they are just paid Patwaris doing their job.

Excuse me, if they are paid ptwaris, are they being paid in Rs or US$? and if in US$ where are the dollars coming from? ?

 

[Modest]

Excuse me, if they are paid ptwaris, are they being paid in Rs or US$? and if in US$ where are the dollars coming from? ?

Patwarion ki itni auqat nahi k un ko dollar may pay kiya jaye ?