The ongoing programme with the IMF is experiencing a pause rather than a derailment.
The budget strategy will deliver growth but raises the risk of external account stress.
The fixation across the divide with the headline growth rate is dangerously misplaced.
The design of the IMF programme has led to perverse incentives and unintended consequences.
By putting together and leading the $62 billion CPEC, China is playing a potentially transformational role in Pakistan’s economy.
Rising inflation and depleting political capital are the most obvious reasons.
The primary purpose is to make the central bank completely independent of any oversight and accountability.
The government should seize the day, not merely save it.
Air quality is at hazardous levels, and a more robust policy response is needed.
Pakistan’s energy sector woes have cost dearly and have undermined economic stability.
Several critical development challenges stalk Pakistan’s longer-term prospects.
Fundamental reforms are needed to change the ‘system of spoils’, not save it.
Many challenges have festered and remained either unaddressed by successive govts, or addressed haltingly.
A concerted campaign has been waged to deflate the morale of the nation.
The PML-N bequeathed the largest economic crisis in Pakistan’s history and left behind a trail of policy lapses.
For Pakistan’s economy to grow sustainably, it has to overcome some serious constraints to growth.
Much of what needs to be done is in the realm of governance; hence, its impact may play out over a longer period.
The federal budget for 2020-21 due today.
The economic impact is via multiple channels.
Flawed reasoning and muddled maths are informing government action.