From a purely demand-supply lens, it is clear that the demand for the USD far exceeds the supply that is available.
To achieve even a 3pc growth rate, Pakistan needs additional foreign currency of an estimated $7bn annually.
Plans to arrange foreign currency, as envisaged in the budget, seem to be a fantasy at best.
Decision making devoid of any data, and understanding of global macro trends, ought to end up in a disaster — as has happened in this case.
We have seen the consequences time and again, but no lessons have ever been learned.
The measure may address immediate solvency concerns but if reforms are not done, there will be no golden goose to cull in future.
The new budget is not just expansionary in nature, it also expects a substantial drop in commodity prices to square off its books.
Government bonds, National Savings Scheme or the stock market: which option would best suit you?
Enabling direct transfers of currency from exchange company to individual’s foreign currency account will minimise cash handling.