Too Good to Be True
"Poor governance and low productivity per capita in comparison with other low to middle-income developing countries have added to this balance of payment crisis in which the economy is unfortunately incapable of earning enough foreign exchange to fund the imports that it consumes," former Engro Corporation Unit Manager and financial specialist Dr. Shahid Rashid shared with Sputnik India.
"Low foreign reserves, a depreciating currency and high inflation have contributed to this scenario, as this week 1 US dollar is trading at 306.33 Pakistani rupees. It is highly likely that the depreciation will reach 500 Rs to 1 US dollar in the coming months. I would say that the country's distortive policy measures have slowed down economic activity which decreased drastically with policy tightening, flood impacts, import controls, high borrowing and fuel costs," the manager explained.
“It is simple economics. It is a matter of cause and effect. Words are not enough, actions are needed and long-term policy changes with implementation of new concrete policies which cannot be done by a short-term government, but rather by a strong, stable, elected leadership,” the specialist stressed.
Placating the Public for a Short-Term Solution
"There are reports of people committing suicide because they are not able to pay their bills. Millions of people are going under heavy debt. Such laughable claims from members of the caretaker government should be seen as a way to placate the public in the short term. Will it work? We don't know. But there's simply no substance to these claims," Jaffery concluded.