18 – 06 - 2018

NOTES

•Pakistan's central bank recently devalued the

Pakistani rupee for the third time in six months,

stoking concerns that the country may have to go

to the IMF for a bailout.

(Speculations about Pakistan going to the IMF for

borrowing loans since 2013.)

NOTES

While a stronger dollar benefits some economies, it hurts

others, especially developing countries. Argentina's peso has

depreciated by about 25 percent this year, while Turkey's

currency, the lira, has also suffered a bruising year, falling

more than 15 percent against the US dollar in 2018.

Many other emerging economies such as Brazil, Indonesia,

South Africa and India have also had a hard time with their

currencies

A BALANCE OF PAYMENTS CRISIS LOOMS

• Since gaining independence in 1947, Pakistan has endured significant

periods of military rule. However, for the last few years, it has been

governed by the democratically elected governments of three

different political parties: the PML-Q, PPP and PML-N.

• I am not biased or affiliated with any political party, but having a

commitment to democracy and free speech, I must point out what

the word on the street is: these three governments have

disappointed the people of Pakistan.

IMF OR CHINA? WHO WILL BAILOUT PAKISTAN’S ECONOMY FROM LATEST

CURRENCY CRISIS?

• Between 2001 and 2013 Pakistan turned to the IMF three

times. In fact, there were as many IMF bailouts of the country

over that period as there were World Cups.

BASICS

•Pakistan was already spending 45% of its GDP to

repay loans.

•Now Pakistan has over 22.8 Trillion rupees debt.

Now that’s too much for a $300 Billion economy

to handle.