Purchasing power will be eroded. It is a fine tight rope to walk. If there is enough surplus liquidity it is doable...(hence why China has managed it quite well and also India to lesser extent)....but Pakistan does not have the forex and tax base to do that without suffering major consequences. The margin elasticities of say textiles (input/output cost differentials) also could very well hurt Pakistan given Pakistan is already in dire need of capital good replacement.
Maybe after CPEC (and assuming enough buffers are created and enough economical injection by the Chinese into capital goods with hopefully low depreciation) there can be a more confident foreign monetary strategy by Pakistan.
@farhan_9909 @LA se Karachi @Arsalan @django