Iran makes airspace off limits to PIA over payment backlog

[Shadow_Hunter]

Things are spilling over. There is so much circular debt that now it is extending outside of borders. If this continues Pakistan's international credit ratings will go down. PIA owes amount to PSO as well, just like almost every other department. It seems this circular debt will eventually eat many corporations in Pakistan. They should just bail them out in the larger interest of the country just like US did. Print money and bail them out.

if they print money, the already high inflation of pakistan will rise even further, everything in your market will get more expensive.....

 

[nForce]

Things are spilling over. There is so much circular debt that now it is extending outside of borders. If this continues Pakistan's international credit ratings will go down. PIA owes amount to PSO as well, just like almost every other department. It seems this circular debt will eventually eat many corporations in Pakistan. They should just bail them out in the larger interest of the country just like US did. Print money and bail them out.

The only problem with your solution is while US was printing USD you will be printing Pakistani rupee.You cant pay off the debts outside your border in Pakistani rupee.
And yes, of course,you risk an abnormal rate of inflation.So,unless you can print USD as well,your solution will not be working.


The solution is to privatize these institutions and make them responsible for their own bread and butter.