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asked ago in General Economics Questions by (140 points)

1 Answer

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answered ago by (2.7k points)
It depends. If Pakistan is an exporter country they should believe in their own resources but if there is an economic crisis I bet that Pakistan is an importer country so the crisis will repeat itself again in the future. Pakistan is a muslim country and there the growth of an economy is slowed by the sin of earn an interest after giving credit to firms. That can make the growth of the economy be too slow to recover the economy with their own resources so a big government expenditure due to a bailout from the monetary international fund can push the economy to a better position looking to the future of the economy. Pakistan should try to stabilize the country and base their economy on exports and try to absorb wages from other arab countries being a productive place so that bailout should be used in educative programs and in help towards the productivity of the whole economy seeking to improve their chances of supply other countries with goods and their chances to become an arab center of production with skilled workers and a situation of calm. If they can't reach this point the next crisis will happen again years after and the bailout can be not paid. Anyway, I don't like this but it is what works on the current capitalism, Pakistan should become a low cost producer for other countries or bet for the development and become a goodquality producer for arab countries trying to export more than import. The bailout will help the country and the system is not perfect at this moment so a few help from another countries with more knowledge about the deepths of capitalism or more luck that are "taking advantage of other countries" can be a good idea. I hope we find a system without negative economic cycles soon. We are working on it and maybe if the world moves fast Pakistan will be able to repay the debt. Because the problem is that if Pakistan doesn't absorb wages or export a big amount of goods or services or even the growth of the economy is too low, the nonreturned bailout will leave Pakistan without financial help in the future and that can mean a continuous crisis.