Pakistani econ analysts are an interesting breed. They want export growth but cry hoarse over a weaker currency which reflects fair value. They want economic growth with borrowed FCY on an overvalued exchange and then wonder why the CA went bust and why we had to run to the IMF.

Going to IMF means undertaking a massive economic adjustment which brings about unprecedented inflation but they’ll wonder why tomato prices are going up. SBP has to raise rates and the gov has to borrow heavily from banks and they wonder why private sector credit is crowded out.

International supply chains are badly affected by covid and food inflation increases worldwide but they’ll wonder why french fries costs so much more.

We have cost push inflation vs demand pull inflation hence SBP should not raise rates. It will badly affect private credit. How does that theory not work when they want SBP to reduce rates ignoring inflation?

We should money print our way out of the recession but the rising M2 number is somehow ignored which shows we’ve been doing exactly.

Stock market goes up and down relative to this boom bust cycle but they’ll say stock market is run by AKD/AH/space cowboy and has nothing to do with market fundamentals.

In short the economic discourse is this country is often pedantic and lacks rigour in any sort of economic theory. Shooting from the hip is common and we like to think we operate on a galaxy far far away where normal rules of engagement don’t apply.