Why is Pakistan’s Economy Crashing Again? Petrol, Policy Rates & Inflation Explained

Описание: As global tensions between Iran, Israel, and the USA escalate, Pakistan’s economy faces a new wave of uncertainty. In this episode of CPDI Economy Talks, we sit down with Mukhtar Ahmad to dissect the recent 1% hike in the policy rate, the surge in petroleum prices, and the looming risk of a "storm of inflation."

Key Discussion Points
🔹The Interest Rate Pivot: After dropping to 10.5%, why did the State Bank just hike rates back up?
🔹Energy Crisis: The cost of importing expensive spot-rate LNG and how it will impact your electricity bills.
🔹The Debt Cycle: Repaying UAE loans while leveraging relationships with Saudi Arabia for stability.
🔹FBR Shortfalls: A 611 billion PKR revenue deficit and what it means for the fiscal deficit.
🔹Alternative Trade Routes: Can Pakistan bypass Afghanistan via Iran and China to boost exports?

What’s Next?
We explore proactive measures such as targeted subsidies for farmers and the motorcycle class, the shift toward green energy (Solar & Wind), and the critical need for macroeconomic discipline to avoid a total derailment.

Disclaimer:
The views and opinions expressed in this video are those of the speakers and do not necessarily reflect the official policy or position of the Centre for Peace and Development Initiatives (CPDI). Any content provided by our guests is of their opinion and is not intended to malign any religion, ethnic group, organization, company, or individual.