The State Bank of Pakistan (SBP) has printed currency notes worth Rs1.167 trillion during the last four fiscal years 2007-2011.The government has plans to eliminate the revenue deficit in FY12 by successful implementation of revenue generation measures and expenditure rationalisation plan as envisaged in Medium Term Fiscal Framework, according to written replies of Ministry of Finance submitted to the national assembly on Thursday.Value of currency notes printed during the last four fiscal years till 30th June 2011 is Rs201 billion in 2007-08, Rs439 billion in 2008-09, Rs154 billion in 2009-10 and Rs373 billion in 2010-11.According to explanation given against the printing of currency notes, the printing does not directly impact inflation. The prime reason for this increase in currency in circulation is heavy government borrowings from SBP for budgetary support. The government is constantly striving to reduce reliance on the borrowing from SBP.Government borrowing from SBP has shown some respite during the last few months. The declining government reliance on SBP for financing of fiscal deficit since mid-December 2010 is likely to continue as an understanding has been reached with the government to restrict such borrowings at the end-September level of Rs 1290 billion. This is expected to help in restraining the printing of new notes and slowing down growth in money supply. Total amount of foreign loan borrowed (disbursed) by the government during the last three years till date i.e. 2008-09, 2009-10 and 2010-11 amounted to $8,961 million, comprising $4,113 million during 2008-09, $3,019 million during 2009-10 and $1,830 million during 2010-11. Budget Estimates of disbursement of foreign loans are $3,059 million during 2011-12. Debt servicing (principal repayment “ interest payment) of foreign loans is being made on due dates and appropriate budget provisions are made as per amortisation schedules. Repayment of foreign loans has to be made on due date and cannot be delayed even for a single day.The reasons for increasing NPLs are economic downturn, rising borrowing cost, falling repayment capacity due to reduction in production because of shortage of electricity. From / Gulf Today