To Jump Start Economy, stupid, CUT Interest Rate

[Altruist]

Don't know the qualification of the Governor of State Bank of Pakistan but definitely he Doesn't understand what to do with economy doldrums. Just because he worked at IMF doesn't mean that the man is qualified or understand what to do with a stagent economy.

He is fixated on inflation and keeping the interest rate high. That is an old school of thought. A high-interest rate results in less demand for money and chokes the economy and leads to unemployment. If this man is smart enough then he should react after seeing results of the higher interest rate.

To jump-start the economy, the State Bank of Pakistan needs to cut interest rates drastically.

 

[Will_Bite]

And then what? Banks start lending incessantly. People borrow more than they can manage, and a couple of years later, you have a line of defaulting loans all over, with banks scrambling to recover assets

There has to be some semblance of order in how things are implemented..and we need to let the inflation subside before interest rates are cut to fuel growth.

 

[Altruist]

What State Bank has done is old school of thought and he should know what it results in. And if didn't know then should be smart enough to see the mess that he has created.

What you are saying is all true. But in bigger scheme of things it is "minor". Remember, there is no road without obstacles.

 

[pkpatriot]

It's catch 22 situation
Decrease interest rate.. national exchequer get empty.
Increase interest rate .. less borrowing and less economic activity.

They are going by book
The country need reserves right now that's y book says keep money, sell bonds etc.

Let's see

 

[Will_Bite]

What State Bank has done is old school of thought and he should know what it results in. And if didn't know then should be smart enough to see the mess that he has created.

What you are saying is all true. But in bigger scheme of things it is "minor". Remember, there is no road without obstacles.

Pakistan has never had a conventional economy, nor a conventional financial system. Our currency is not free float. I wish PTI had made it free-float last year. It would have jumped higher, but would have recovered to the current level. But maybe that was a nuclear option, and was avoided.
Because of the way our economy 'works', it has to be managed unconventionally. Give it time. The mess created by Dar is too deep. There is a reason he refuses to return.

 

[Altruist]

Indeed, State Bank to manage money supply while using interest rate keeping an eye on inflation and unemployment. At this point it will not hurt to reduce interest rate by two basis points. A jump start in economy will create jobs and thus ultimately bring money in treasury.

Dar was an accouant who knew how to juggle numbers. He was not an economist neither understood it. Pakistan was fined by IMF for cooking numbers by him.

too bad we have pundit on TV who talk about all the ills but wonder where they we when Dar & Co. Was screwing economy.

 

[Steyn]

Don't know the qualification of the Governor of State Bank of Pakistan but definitely he Doesn't understand what to do with economy doldrums. Just because he worked at IMF doesn't mean that the man is qualified or understand what to do with a stagent economy.

He is fixated on inflation and keeping the interest rate high. That is an old school of thought. A high-interest rate results in less demand for money and chokes the economy and leads to unemployment. If this man is smart enough then he should react after seeing results of the higher interest rate.

To jump-start the economy, the State Bank of Pakistan needs to cut interest rates drastically.

Youthiya feeling the hate but shifting blame to pawns instead of the real culprit.

Don't worry, one day youthiya will blame Niazi too when it will be too late and Pakistan will be F U C K E D beyond anyone's imagination

 

[Altruist]

Youthiya feeling the hate but shifting blame to pawns instead of the real culprit.

Don't worry, one day youthiya will blame Niazi too when it will be too late and Pakistan will be F U C K E D beyond anyone's imagination

Don't know if you comprehend what is being said. The problem is not Imran Khan but his incompetent team which is going to drag him down. Before that happens he needs to react.

 

[Steyn]

Don't know if you comprehend what is being said. The problem is not Imran Khan but his incompetent team which is going to drag him down. Before that happens he needs to react.

His incompetent team suddenly appeared out of nowhere right?

Niazi doesn't see his team as incompetent. Niazi believes in meritocracy and thinks his team is perfect.

For the job of destroying Pakistan, Niazi tram is perfect