Zohaib
10K posts



Govt decides to keep petrol prices unchanged. Two possible reasons: 1) Rs. 55/litre hike in early March was adjusted to the then peak $120/barrel. Since then, prices remain below the peak (Brent $111 today). 2) Govt was able to ensure supply of oil, including cargos from Oman.

Jeffrey Sachs is spot on.....



Pakistan’s foreign exchange intervention crisis deepens as Business Recorder reveals the unsustainable foundations of the country’s claimed economic stability. According to the analysis, Pakistan’s reserves are entirely debt based as roll-overs are estimated at 16 billion dollars while reserves reached $14.525 billion. The State Bank reportedly picking up 8 billion dollars from the open market has created severe dollar supply shortage in the open market leading to a fall in the rupee value in spite of the current account surplus. The piece reveals the Fund’s own warnings that external and domestic risks may quickly eviscerate Pakistan’s hard won economic stability. The IMF has documented how economic volatility has only increased over time, with a tight correlation between Pakistan’s boom-bust economic outcomes and its economic policies. Business Recorder highlights the fundamental contradiction: massive central bank dollar purchases creating artificial scarcity while maintaining exchange controls. This mirrors the failed Sri Lanka model, burning reserves to maintain unsustainable exchange rates rather than allowing natural market adjustment. Despite stability claims, the analysis notes large-scale manufacturing at negative 1.52 percent, poverty at 44.2 percent, and unemployment at 22 percent. The discount rate reductions haven’t translated to genuine recovery because underlying currency pressures remain unaddressed through artificial interventions. As Business Recorder documents, Pakistan is following the exact trajectory that destroyed Sri Lanka: debt-based reserves, artificial exchange stability through massive interventions, and structural problems ignored until reserves inevitably run out. Article below👇


















