Dont you think sooner or later we will go default? we will never come out frol debt trap and will keep paying interest. On other side population will keep increasing and we will have shortage of food and will habe inflation.
From where we will generate dollars?
Population rise is not an issue but an oppurtunity
Debt is not an issue for pakistan
Issue is curving to subsidize everything..
Subsidize govt institutions and subsidize food or depress food prices by desrroying the farmers..
We have cheapest oil prices in the region..
All this evetually is counter product and leads to collapse and rebound inflation..in 2015-2017 inflation was at 2% ..unnatural for a country with dropping imports..
Compare this to bengaldesh with booming economy and inflation of 5% but poverty is probably still very high in bengaldesh
Pakistan wants shortcuts to development..unfortunately they dont exists..in the search for shortcuts we jump 10 feets ahead and then jump 20 feets back..
Regarding inflation..first 24 months was all due to devaluation that we did all due to prior govt policies
Regarding this year inflation..mostly due to withdrawal of subsidies and global inflation which at USA is around 6% so what do you expect in pakistan for it to be??
What i expect is PTI govt buckling under pressure and we going back to cycle of boom and burst ..that is printing notes..
Let see whether arabs bail us out this time or will we end as lebanon.. default..and wether we will use indian rupee or chinese yen as our local currency afterwards..geniuenly thought rupee will hit 200 after IMF deal in 2018 but it didnt happen..may be i will be wrong again..who knows
But to think that it took 10+ years of policies for bengaldesh and India to stand on toes and we will do it in 24 months whilebour crisis was 10 times worse is nothing but dewaney ka khawab..
You dont fix your productivity in few months..infact you dont even get investor confidence in that period
These decision will impact next election as all voters will feel impact of rise in prices
- Imran Khan is being slowly led into a very bad political position , and decisions like hiking prices for food at such drastic margins will be felt widely
Voters should vote for nawaz sharif
I think pakistan needs to default to learn it lesson.
especially the middle salary class and army needs to learn the mess it created
We have created a huge pending doom for inability to fix power sector and huge pension liabilities, in addition to the opium of subsidies
50% inflation due to 50% devaluation and global inflation isnt enough
We need true defualt and and 500-1000% inflation so people understand that this isnt a joke