Positive signals rising from Pakistan’s economy...

[Yaseen1]

when capital is expensive it will cause businesses to raise costs of their products so inflation will become higher,also production and availability of products in market decline due to less availability of capital as it is expensive so price of products go up,you cannot control public spending of items whose demands are inelastic in nature,I think after govt raised interest our inflation raised so I think in Pakistan economic circumstances this economic theory not applies properly,it applies on developed economies

Inflation happens because their is more money than value(printing notes)..
Interest rates are done to curb demand and decrease inflation ..
Surprising that such simple concepts are misunderstood here..


True
but not now when inflation at 10-12%...rates should be 1-2% above inflation

 

[Imad.Khan]

Inflation happens because their is more money than value(printing notes)..
Interest rates are done to curb demand and decrease inflation ..
Surprising that such simple concepts are misunderstood here..

To be honest i never actually paid much attention to economic side before, just started paying attention now so thats my reason for being a novice ( me being polite to my lack of knowledge).

True
but not now when inflation at 10-12%...rates should be 1-2% above inflation

Do you reckon heading towards a full-scale e-money would resolve the issue of banks not having enough capital?

 

[Manidabest]

hopefully our media will highlight government's achievements

 

[Syed1.]

hopefully our media will highlight government's achievements

Media is only there to highlight suwar's platelet count.

 

[Flight of falcon]

If you let locals buy T bonds then they invest their cash in buying secure investment instead of spending on setting up new businesses.

This dries up the local money supply causing severe liquidity crunch . That’s why we prefer foreigners to invest which brings us badly needed $$$$ and also let the foreigners invest in other things beside T bonds such as stock market..... this is how you lure foreigners money and most will keep their investment even if the rate drops to 8 percent which is still very good.

Unfortunately after paying capital gains and other taxes they don’t really take home full amount of return .