Chakar The Great
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It is said that PMLN had such good economic progress with 5.8% growth and PTI government destroyed it. So instead of showing myself what the problems of that growth were, I have compiled what international newspapers and economic institutions were saying about this growth. Lets have a look,
IMF In Feb 2018, the IMF reported that the macroeconomic stability achieved in 2013-2016 has been eroded with high fiscal and external deficits. It recommended a flexible exchange rate and more fiscal tightening for a more inclusive and sustained growth in the future.
World Bank Nov 2017 In the Pakistan Development Update, the WB talked about how external and fiscal pressures are piling up and must be tackled for sustained growth. It also recommended a flexible dollar rate to maintain REER.
World Bank Oct 2018 Again this time the WB says that the twin deficits have grown further and tightening the imbalances is now inevitable and now the GDP growth will surely slow down. Yes WB had already projected.
ADB In a research paper published by ADB in 2019, the frequent boom bust cycles in Pakistan economy are discussed and it is said that in the current structure, a growth of above 3.8% will lead to macroeconomic imbalances and will thus be followed by an era of lower growth.
World Bank Pakistan @ 100 In this comprehensive strategy paper, the WB talks about Boom Bust Cycles and how this has a structural nature and previous govts. had focused on short term reforms and in 2018 again this cycle was repeated.
World Bank PEFA WB released a report in 2019 covering three FYs of PMLN govt. and downgraded performance in all areas. The best thing about this was Maryam Nawaz tweeted this to show failure of PTI govt. and had to delete it later xD
So this is getting monotonous now, so I will just be posting headlines from international institutions, newspapers and attaching links in the replies. Almost all sources cited high CAD, low foreign exchange reserves, overvalued currency as reason for economic disaster.
Some headlines talking about difficult economic times incoming. Notice the dates. The sources include New York Times, CSIS, The Diplomat, Lowy Institute, DW, CGDEV, MarketWatch, Bloomberg
So next time you talk about the high growth in PMLN era, talk about these facts too. Its easy to see everything in black and white and criticize the outlier indicators but it is important to jump into the reasons for the indicators.
Thank you.
Credit: https://twitter.com/mobeen_hameed
IMF In Feb 2018, the IMF reported that the macroeconomic stability achieved in 2013-2016 has been eroded with high fiscal and external deficits. It recommended a flexible exchange rate and more fiscal tightening for a more inclusive and sustained growth in the future.
World Bank Nov 2017 In the Pakistan Development Update, the WB talked about how external and fiscal pressures are piling up and must be tackled for sustained growth. It also recommended a flexible dollar rate to maintain REER.
World Bank Oct 2018 Again this time the WB says that the twin deficits have grown further and tightening the imbalances is now inevitable and now the GDP growth will surely slow down. Yes WB had already projected.
ADB In a research paper published by ADB in 2019, the frequent boom bust cycles in Pakistan economy are discussed and it is said that in the current structure, a growth of above 3.8% will lead to macroeconomic imbalances and will thus be followed by an era of lower growth.
World Bank Pakistan @ 100 In this comprehensive strategy paper, the WB talks about Boom Bust Cycles and how this has a structural nature and previous govts. had focused on short term reforms and in 2018 again this cycle was repeated.
World Bank PEFA WB released a report in 2019 covering three FYs of PMLN govt. and downgraded performance in all areas. The best thing about this was Maryam Nawaz tweeted this to show failure of PTI govt. and had to delete it later xD
So this is getting monotonous now, so I will just be posting headlines from international institutions, newspapers and attaching links in the replies. Almost all sources cited high CAD, low foreign exchange reserves, overvalued currency as reason for economic disaster.
Some headlines talking about difficult economic times incoming. Notice the dates. The sources include New York Times, CSIS, The Diplomat, Lowy Institute, DW, CGDEV, MarketWatch, Bloomberg
So next time you talk about the high growth in PMLN era, talk about these facts too. Its easy to see everything in black and white and criticize the outlier indicators but it is important to jump into the reasons for the indicators.
Thank you.
Credit: https://twitter.com/mobeen_hameed
