Yeah that destructive mode witnessed 5.8 GDP growth even after the effects of D chowk dharna, inflation and currency value was under check and the industries never shut down their production......
i totally agree with you .
You can disagree, it's your right, but I will try to present the scenario.
Your growth is 4% without taking much loan, but you decide to increase imports and so your growth increases to 4.6% but the CAD also increases for which you need to take loans, now next year you increase your imports furthermore to support even more jobs and your growth increases to 4.9% but so does your CAD and to balance that CAD you need to take even more loan than last year, and the cycle continues. Now of course if you have reserves of your own then you can import things with your own resources and support more jobs and have a good growth but for an economy like Pakistan where there were only 2-3 months worth of import reserves and you had to take loans to balance your CAD, this policy was disastrous and in the last year of PML-N they had taken 12$ billion loan and before their government was ending it was known to everyone that whichever government comes they will have to take $10-12 billion immediate loan to balance CAD, because imports were more than double than exports, and the CAD was close to $20 billion.
Now you Saw how much negotiations did IMF do for just $6 billion, just imagine if KSA, UAE and China didn't have helped Pakistan ease some pressure this year, what the situation would be? And then by keeping the same policy of imports/exports next year you would be needing Around $20 billion again to balance CAD, who would be willing to give you that amount of loan? And so Pakistan was going to be doomed, so the only way around this was to put a stop to this policy, reduce imports, increase taxes(to generate some extra billion dollars), and stop artificial control of dollar to save some foreign reserves and also to support exports. All these measures meant a slow down of economy, laying off jobs and inflation but this also meant that next year you will be able to have a CAD which will be within your affordable reach.
