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This is not unique for Pakistan. Most developing countries want to import the capitalist goods (everything necessary for modern urban life) that are ideated and manufactured by more developed countries. Only resource exporting countries (like those in middle east) can afford to consume modern...

BoP is typically a result of twin deficit (fiscal and current account). Some countries are able to avoid BoP despite running twin deficits because of Capital Account surpluses (FDI is one way). Pakistan does not have that luxury. Pakistan's BoP episodes could be because: a) Pakistanis have been...

It appears that the hit against PKR has run out of steam. By the time the bridging finance is arranged and IMF board approves bailout, PKR may well be below 200. Perhaps even towards 170 after the deferral of other outstanding debt. The current administration has to control inflation, but at the...

I do not care for PLM N or PTI. I say what rationally appeals to my understanding of how the economy works. I'm at frequent odds with the PTI narrative because it is simple populism. If you disagree with my views, please contest them rationally. Perhaps you can correct me and other readers with...

India did this in 2010

Au contraire, Pakistan is unable to increase exports without running into BoP. It is common for most developing countries to run twin deficits because they simply don't add enough value (with sufficient efficiency) to justify what their industries import.

What is the use case for green hydrogen produced through this project in Pakistan? 🤔

Exports are manufactured by importing necessary parts, equipment, energy and raw materials. When people say that Pakistan 'manufactured' mobile phones, what really happens is that components are imported and then assembled in the country. Value addition is less than 20%, perhaps even 10%. So...

The economy was cooled on purpose to control CAD

I'm aware of problems that result from sugar intake. But trans fat is also an important problem to avoid.