There has been a considerable debate on currency management for a while. The pendulum of currency swung between defending currency to supposedly market based exchange rate in the recent times. The side-effects of both extremes are much clearer in hindsight and this may perhaps be a good time to look at their pros and cons objectively.
After over four and a half months, I am finalising and releasing this article on my 50th birthday. I had gotten much more birthday wishes this year than ever before which was a great feeling indeed. Some people, however, suggested that there should be birthday celebrations for me twice a year – once on 9th October and other on 22nd May.
Pakistan seems to be suffering from the same syndrome. The obsession and the unwavering trust in multilateral agencies, including IMF, and the traditional foreign bilateral partners, particularly Saudi Arabia in the context of helicopter money, and the bells & whistles attached with the helping-hand ever extended by them in the past, fits the bill perfectly to categorise the situation, as such, in the context.