Our Beacon Forum

Pak Economy - Imran Khan, do not worry at all
By:Ather Mohiuddin, Pakistan
Date: Sunday, 19 May 2019, 9:30 pm

Economic warfare is as lethal as physical warfare. Pak is in classic debt trap. There is no bankruptcy for nations as there is for individuals. Previous leaders borrowed and mismanaged. PTI inherited mess.

IK should go for debt write off; file a racketeering charge against IMF on the grounds they knowingly lent money to dishonest governments; but that’s fighting talk.

Two lessons for future. People are quite capable of huge blunders collectively; an efficient central bank is as important as military.

IK can print more money; issue specific government bonds in order pay IMF debt; but those involve interest; there will be hue and cry; probably bring down his government. Pak govt already issues investment bonds. I don’t know at what scale.

During the time of Prophet pbuh people would donate willingly; no such possibility now.

The other option is declare martial law; forcibly take away all gold from people in exchange for government bonds; payoff all foreign debts with gold.