In Pakistan, printing in the past has had a number of challenges. The COVID-19 has made life a bit more difficult for many small printing shops, and the lack of government funding for printing in Pakistan is a major issue.
Digital Printing Vs Offset Printing
If you are looking to print your next business card or brochure, there are two printing methods to choose from - digital and offset. They have different advantages and disadvantages, so you should be able to make a decision based on your needs.
Digital printing in Pakistan is the process of using a computer to transfer an image to paper. It is a more economical option for small runs, and offers faster turnaround times and variable data capabilities. However, it can also be expensive for large projects.
Offset printing, on the other hand, is the traditional method of printing. It involves transferring an image from a matrix plate to a rubber support and then printing it on paper. The image is sharper, more vivid and more authentic than a digitally printed version.
Unlike digital printing, however, the process does involve the use of plates, and it takes a bit more time and effort to set up. Although this is one of the oldest printing processes, it still provides beautiful results.
Lack of Government Funding For Printing in Pakistan
The government of Pakistan is printing huge sums of cash in order to pay the interest on a massive debt. This money is also being used to fund the defense budget and pay subsidies for consumers. However, the country's foreign reserves have fallen to their lowest level in a decade.
The country has only enough foreign reserves to cover a month of imports. Hence, it will have to raise taxes or cut subsidies in order to provide the needed fiscal space.
Moreover, the government has been under pressure from the International Monetary Fund (IMF) to reduce the subsidies. But, removing the subsidies would be unpopular. And the government has little time in office.
The paper industry is facing a dire situation. In particular, publishers have stopped production because of the high import tax. Paper prices have also soared. This is a symptom of a growing crisis in the country.
Abid Nisar, a former vice chairman of the All Pakistan Paper Merchants Association, has urged the government to subsidise the printing sector. He has pointed out that the dollar is overvalued.
Demand for Cash
One of the reasons why the Pakistan government has been offset printing money to pay pensioners, subsidies, and defence expenditures is the growing demand for cash. However, the rising demand for cash is also affecting the cost of printing.
The demand for cash is driven by several factors. Besides the transactional motive, people are afraid of being taxed and they also want to save the money they spend on cash transactions.
Another factor influencing the demand for cash is the opportunity cost. This is especially true if the economy is in crisis. In case of a recession, investing in education and health services could be very helpful.
The government of Pakistan is facing massive financial problems. Its foreign debt stands at US$50 billion, and its GDP is among the lowest rates in the world. A slew of financial problems has led the country to face economic instability and political uncertainty.
According to the Asian Development Bank, the economy is now living on borrowed time. While the world economy has recovered from the global financial crisis, Pakistan's economy has faced slow growth. Moreover, Pakistan has been unable to increase exports. Consequently, its income tax base has declined 12%.
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