Opinion: π΅π°'s economic revival wayout
1 Free exchange rate
2 Follow all IMF conditions
3 Reschedule loans
4 Allow imports, no focus on $ price, saving businesses is important. Will also help in taxes
5 Pay demurrage losses
6 Real interest rate=0
Result = inflation<default level
1 Free exchange rate
2 Follow all IMF conditions
3 Reschedule loans
4 Allow imports, no focus on $ price, saving businesses is important. Will also help in taxes
5 Pay demurrage losses
6 Real interest rate=0
Result = inflation<default level
This is a complex route itself but only a possible one to save Pakistan. The process of import ban & demurrage losses to companies killed many businesses, they are a source of employment & future growth of Pakistan must be protected.
The problem is people & the government is underestimating Inflation bomb π£ by default like situation is knocking our doors.
Just to understand, Inflation in 2 recently defaulted nations, a month after default:
Sri Lanka (September): 75%
Ghana: 50% (recent, impacts are coming)
Just to understand, Inflation in 2 recently defaulted nations, a month after default:
Sri Lanka (September): 75%
Ghana: 50% (recent, impacts are coming)
*are
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