Experts flay govt’s ‘nonsensical’ economic policy

Two prominent Pakistani American scholars — an economist and a political scientist — have warned that the national economy is near collapse and needs immediate course correction. “To thump your chest and say, ‘see we have not defaulted’ means nothing if you continue to ignore the underlying crisis,” warned Atif Mian, a professor of economics, public policy and finance at Princeton University. “The only thing worse than indecisiveness in the face of a crisis is incompetence.” Shuja Nawaz, a scholar whose books on the Pakistan army are widely admired, warned that the current political crisis “has already weakened the economy and destroyed public trust.” The crisis “has destroyed trust in Pakistan as a site for investment by other countries and even by overseas Pakistanis,” he added. In a series of tweets on Wednesday, Mr Mian compared Pakistan with two other countries — Sri Lanka and Ghana — that have also been facing economic crises. He pointed out that both Ghana and Sri Lanka have defaulted during the last two years, Pakistan did not but its currency devalued by 1/2, as did Ghana’s. Sri Lanka’s currency devalued by 1/3rd. The Pakistani currency, he noted, has devalued significantly more than Sri Lanka’s.