Macroeconomics of empty promises
The State Bank of Pakistan’s (SBP’s) foreign exchange reserves have dropped by nearly a billion dollars in just eight weeks, from December 13 to February 7. This decline occurred despite…
Macroeconomic projections of IMF, WB
There have been two very recent sets of macroeconomic projections for Pakistan. The first is in the IMF Staff Report on the Extended Fund Facility for Pakistan. The second set…
Missteps and missed marks: macroeconomic stability is just a distant mirage
Despite ostensibly achieving some macroeconomic stability—as evidenced by falling inflation, a stable exchange rate, and an improved fiscal balance—the government is falling short on multiple fronts, failing to meet several…
What sustainable macroeconomic stability?
The fall in inflation (to be precise CPI inflation) to single-digit in August –stood at 9.6 percent – meant that it was almost after three years that inflation had come…
Restore macroeconomic stability to revive private sector credit
Since the 2008 economic crisis, the private sector’s contribution to economic growth has been marginal, replaced in large part public sector projects and CPEC (China Pakistan Economic Corridor). This has…
The macroeconomics of electricity tariffs
In Pakistan, the landscape of power tariffs is shaped significantly by the framework of Power Purchase Agreements (PPAs) and is directly connected to macroeconomics. Under these agreements, the costs associated…
Elusive macroeconomic stability
In a recent statement reportedly, interim finance minister Dr Shamshad Akhtar indicated that there were signs of economic recovery, whereby she pointed out: ‘There are some initial signs of economic…
Beyond macroeconomics
The International Monetary Fund (IMF) epitomizes a global economic paradigm rooted in inequality with little emphasis on inclusiveness. Advocates of this model argue that some degree of inequality is essential,…
Lack of prudent macroeconomic policies
“The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design” — Friedrich von Hayek Pakistan is facing a…
IMF’s macroeconomic projections for FY23
The IMF staff report on the seventh and eighth reviews of the EFF with Pakistan contains a detailed set of macroeconomic projections of the economy of Pakistan for 2022-23, and…
