Shaukat Tareen appointed Pakistan’s finance minister, third in 2 weeks

[Norwegian]

We will know that soon but as i said before PTI may sccub to the populist demand of low interest rates and printing notes..it seems that will be happening to some degree...to what degree is the real question

It seems PM has given Shaukat Tareen free hand to print notes to boost growth which will be temporary and lead to a bust, forcing country back to IMF.

Bro I might have missed something but there is nothing in the video which says what you wrote.

At 4:39 he tells Shaukat Tareen's great economic plan that is artificially low interest rates which is another word for massive money printing. It leads to boom and bust cycle, bankrupting the country forcing it back to IMF.

 

[ziaulislam]

It seems PM has given Shaukat Tareen free hand to print notes to boost growth which will be temporary and lead to a bust, forcing country back to IMF.

Not while raza baqir is there..
The ultimate power to print notes lay with him

As i said before printing some notes is okay(hell we did it during covid and hence didnt went through indian style recession) but to what degree is the real question

One thing is for sure ..we will know in next 6 months

If some state bank lending is done(not huge) and subsidies are targeted and focus is for private sector to do spending rather then govt sector and export /remittences keep on grwoing strong then we should be fine

 

[HRK]

Told you Shaukat Tareen is a dinosaur. In his recent meeting with PM and economic advisors he seemed to convince everybody that money printing through artifically low interest rates is the only solution to achieve short term 6-7 percent gdp growth

We are screwed again as this exact policy resulted in past three balance of payment crisis.
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May I know where it is said in this video what you have wrote in your post .... ???

 

[Patriot forever]

At 4:39 he tells Shaukat Tareen's great economic plan that is artificially low interest rates which is another word for massive money printing. It leads to boom and bust cycle, bankrupting the country forcing it back to IMF.

Nope bro that's not what it means. The most likely parameter it will have an undesirable impact on is inflation. It will be controlled, if you see raza baqir recent I think an interview, he gave clear hints that policy rate will be almost same in the near term. Currently we have negative interest rate (which is very much understandable as inflation figures are mostly low base effect due to suppression during Covid lockdown same time last year). It will continue the same trend.


The video is very much clear in terms of not using SBP to propel growth/ increase spending via PSDP.

 

[Norwegian]

May I know where it is said in this video what you have wrote in your post .... ???

At 4:39 where Shaukat Tareen layouts his great plan for Gdp growth at 6-7 percent by artificially low interest rates aka money printing.

Nope bro that's not what it means. The most likely parameter it will have an undesirable impact on is inflation. It will be controlled, if you see raza baqir recent I think an interview, he gave clear hints that policy rate will be almost same in the near term. Currently we have negative interest rate (which is very much understandable as inflation figures are mostly low base effect due to suppression during Covid lockdown same time last year). It will continue the same trend.


The video is very much clear in terms of not using SBP to propel growth/ increase spending via PSDP.

But Shaukat Tareen in his interviews has bashed govt / state bank policy of high interest rates. How is interest rate high when it is just above inflation? Shaukat Tareen wants to lower interest rate below inflation which already happened in past 3 govts boom bust cycles.

 

[Arsalan345]

I think there is a an old nab case open against this person. it's amazing. you can become superman in Pakistan also. all it takes is just resources and corrupt political parties.

 

[Patriot forever]

At 4:39 where Shaukat Tareen layouts his great plan for Gdp growth at 6-7 percent by artificially low interest rates aka money printing.

But Shaukat Tareen in his interviews has bashed govt / state bank policy of high interest rates. How is interest rate high when it is just above inflation? Shaukat Tareen wants to lower interest rate below inflation which already happened in past 3 govts boom bust cycles.

Bro lower interest rate is not aka money printing. Lower interest rates support economic growth with affordable capital and credit via banks to private sector mostly.

For example India interest rate is in negative as well to support economy in Covid times, that does not mean they are printing money to finance lavish government spending.

SBP policy of high interest rate was very well reasoned in my opinion. It spread out the inflation over a period of 2 years. Had it not been done there would have been a massive spike in inflation (expected compound inflation of around 20-25% due to devaluation in rupee along with tariff adjustment in both gas and electricity, this was targeted in a preemptive manner by SBP ). The rates were kept higher than inflation to restrict money supply in market as supply of goods was curtailed especially imports to bring CAD under control. To bring supply and demand in equilibrium.

 

[HRK]

by artificially low interest rates

exactly where in that video or in the plan it is said to "Artificially Low Interest Rates" .... ????

bhai Neem Hakeem mat banoo ..... and don't translate the said sentence in manner you deem fit ..... because other can translate the sentence under discussion as strict financial discipline by government and no borrowing from STATE BANK ....

Under this policy government would continue to stop absorbing already available extra liquidity in financial system this alone would translate low interest rates ..... for this you you have to have understanding of financial policies adopted by SBP of Pakistan .... and currently this policy is already in practice so ST is not only advocating the same the but hinting to support this policy

So plz don't post without better understanding of both Economic and Financial Policies ....

Bro lower interest rate is not aka money printing. Lower interest rates support economic growth with affordable capital and credit via banks to private sector mostly.

this is exactly what he is not understanding ST is propagating for decrease the cost of economic input and increase of Domestic Purchasing Power .... so that local industry could increase the production ....

Low inflation and and Low interest rates policy is indicating in this direction ....

 

[Norwegian]

Bro lower interest rate is not aka money printing. Lower interest rates support economic growth with affordable capital and credit via banks to private sector mostly.

If it's going to private sector then well and good. But if goes to overblown government sector, then expect another boom bust cycle.