Economy of Pakistan as per my understanding; Gas prices already raised Oil and electricity prices will increase in coming month Interest rates are raised and will be further increased to double digits Exchange rate will further depreciate (Expected 140+/$, Currently; 128, at start of Calendar year; 105) All this will push inflation to double digit Imports will further raised in dollars due to further depreciation of rupee) exports will definitely increase but after approximately 1-2 years (how much ... time will decide) PSX is down due to no clarity in government policy CPEC is on stake due to mix statements of government ministers; include Saudi Arabia, not including, public all CPEC agreements etc) Opposition is under attack by NAB and Courts will further raise political instability in the country,
cases on many business tykones resulting in low foreign and local investments (high cost of doing business due to inflation and high interest rates and taxes) Government has no plans for economic development. Taking lots of time to decide what to do? Pakistanis in foreign countries did nothing for improving economy as it was expected by Government of Imran Khan Conclusion: Next year/s is/are not good for the people of Pakistan
How to improve it? what are the solutions?
It is almost similsr to Sri Lanka back ground. Fuel prices and gas price increaed and $ rate is also having a great hike.
Reading your post I think that situation in Pakistan is somehow closer to that in Turkey. Inflation goes up, the exchange rates of the turkish curency go down and the recession is on the way. The usual measures recommended by macroeconomists are focused to purposed government expenditure increment. I addition to rising interest rates, increasе the budget expenditures toward subsidies in industrial assets would reduce the recession caused by the interests. The Turkish President demands lowering the interest rates, but the central bank do not tend to do it. This is considered to be the right way. Stable and slightly increment of the interests, and government expenditure toward industrial expansion.
If anything I can learn from past, it's always down but never out.
Thanks to all of you. it was a fruitful discussion. I hope things would go positive in coming years (not expecting it in upcoming 2 years).
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