Friday September 29, 2023

Stagflation nation

December 05, 2022

Pakistan’s economy is going through what can only be called stagflation. Our levels of consumption and investment never fully recovered from the Covid pandemic, and yet we are facing sky-rocketing inflation. Prices are climbing while growth is falling and no one seems to be able to find a way out.

Debt repayments have chewed up any fiscal space we had to lower prices through subsidies or boost spending. The current government needs to come up with some solution other than just asking for more aid and raising more debt.

Faris Khaliq