Courtesy: Geo News
- “The system is coming hinged,” Atif Mian says.
- Economist blames “foolish policy choices” for economic woes.
- “We are seeing uncertainty that results in flight of capital,” he adds.
Economist Atif Mian on Wednesday claimed that the $350 billion Pakistan economy is in a “tailspin, going from crisis to catastrophe” as the nation teeters on the brink of a default as the International Monetary Fund’s (IMF) bailout hangs.
“The system is coming hinged,” Mian said, elaborating that this can be seen in the increasing stagflationary forces — growth is rapidly falling, and prices are rapidly rising.
The economist — in a detailed thread on Pakistan’s economy shared on his Twitter handle — warned that these are “very worrying” signs.
The US scholar reiterated that the “bigger worry now is that the entire system is getting unhinged.”
“We are witnessing the kind of uncertainty that results in the flight of both capital and humans — pushing further downward pressure on supply,” he wrote on Twitter.
However, with inflation at all-time high and foreign currency reserves barely enough to cover a month of imports the people teeter to make ends meet.