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Showing posts from July, 2018

The insanity of Our Economic Policy

“Insanity is doing the same thing over and over again and expecting different results.” Einstein
Pakistan is an IMF addict: we have had 12-13 IMF programs in the last 30 years and have spent more than 22 years in a program (more if you count program monitoring). So, what will change with another program? Will both Pakistan and IMF repeat the past and prove insanity as in Einstein’s maxim. IMF gave us a clean bill of health about 2 years ago, yet we are in another BOP crisis. You can see the exchange rate collapsing. Will the doctor repeat the old medicine?   While policy, IMF and our policy remain engaged in a dismal dance, the economy beyond the control of the MOF chugs along creating a middle class. People are largely better off despite the shenanigans of the trio (MOF, IMF and pundits). People have worked hard to build a life for themselves whether through migration or some trading and even informal work at home.  But then the trio (IMF, MOF and our economists) call the hard work of …