India showed about 30 years ago that you can walk out of the IMF program and need never go back. Pakistan rejected that model simply because it is an Indian model.

This is a very good discussion. As someone who studies Economics, especially Modern Monetary Theory. I believe I should rewatch and review. Lets start 2:41 In my Opinion, a free floating Pakistani Rupee is required. When you fix the conversion rate it doesn't mean that people cannot convert the Rupees at unsanctioned rate. It means that the central bank will have to back the Rupees in exchange of dollars. This means that you will end up depleting dollars just to defend your currency. Yes your imports will become expensive but the price will soon stabilise. And yes your debt obligations will increase in Rupee terms but thinking that fixing the exchange rate will save you money is wrong way of thinking. It will cost you even more as the cost of defending Pakistani Rupee will be even higher. This has been proven by Economic models for decades now. 5:40 Yes Pakistan is too dependent on import but if Pakistan saves money by reducing Military spending, they will be able to impose good impactful changes. India went to IMF in 1991 and did not have to go again. Bangladesh, a nation which does go to IMF more often, has even less resources than Pakistan but brought about correct changes and improved. 11:55 Virtually Every country controls the exchange rate in some capacity but the Exchange rate should be mindfully and realistically set. India had similar problems in 91. Pakistan doesn't even attempt to reform service sector. 16:16 yes that is true and correct. 18:49 Beggars can't be choosers. Just because the majority in the country has decided something doesn't mean that it is good. Segregation in USA was democratic. Do you have the right to implement the policies you want. Yes. But then you can't crib and complain about things not going your way. 21:22 No IMF has not stopped you from doing all of these thing. Your Army has. Janab aapne kabhi IMF ki baatien nahi mani hain. 23:20 I am not informed on this but if this is true then it makes no sense. Taimur Bhaijaan is right to criticize it. 23:46 Spending aapke control meh hai Janab. Spending sudharen. 25:45 The most important thing is budget and government spending. 29:18 (with regard to what has been discussed in the last 4 minutes) In my opinion, Taimur Bhaijaan's recommendation while sometimes good cannot improve Pakistan if they go beyond IMF's framework. The framework presented by IMF is genuinely important for growth. 33:25 I commend the dedication Taimur Bhaijan has with regards to his standings. I wish you well and hope that you do well in Pakistani Politics. *** Bhutto's Nationalization *** I will not comment on this part because I am not aware of the history of this part. Neo-Liberalism has lot of problem and Taimur Bhaijan is right to be weary of Neo-Liberalism. I don't blame Bhutto for any economic failure. Man was under a lot of pressure during his entire tenure. ******************************** Private is better than Public generally because private firm do not suffer from corruption and everyone in the firm is incentivised. Private can work but you need good and honest workforce which I don't think Pakistan has. 47:00 Yes that is true. This is part of Modern Monetary theory. Yes they only give these loans for profit. Yes that would incentivise Real Estate loans. 48:58 This is interesting. Taimur Bhaijaan does not understand what the word free means in free market. Yes The spending by the Government in USA is a lot but that does not mean that USA is a command (un free) economy. You can go and check the economic freedom rating by various agencies which rate Pakistan poorly especially when it come to business freedom. Spending does not mean control. Restriction = Control. Pakistan has constricted business activity. www.heritage.org/index/visualize 52:45 Taimur is correct here and while Shehzad is correct to point out the short coming in Pakistani system, it is not the responsibility of Pakistani banks. 55:46 Not necessarily. It is possible to give that money and not have inflation because Inflation occurs only when the money supplied is spent on a single type of commodity in large proportions. You can get away with not having inflation if the money is spent on things like Heavy machinery, stocks, etc. or yes, if the money is converted to dollar and taken out of the country. Inflation is really complicated. I would suggest anyone reading this to watch this video by PHD Joeri Schasfoort kzfaq.info/get/bejne/sN6ngpep3JqnimQ.html 57:29 Taimur is right. This should be implement and should work in my opinion. The reason IMF has not allowed you to have a state bank which can lend money to the state is because Pakistan might use that printed money for paying loan which will be disastrous. First prove that you can spend the money correctly after cutting your budget and then go on to reform the Bank. 1:05:00 Shezad is correct. SME can grow in my opinion I don't trust the Pakistani Government to lead industrialization. MSME should be empowered to lead industrialization. ***** END****** I would have to write more but I don't feel the topics after this are relevant to me. Thanks for reading. Keep up the good work Shehzad. P.S. I might have some spelling mistakes. I am not proofreading to correct any mistakes. I am tired.

As a small business owner, outside of Pakistan. I completely agree with Dr. Taimur, it is very difficult almost impossible to compete with big companies. We do not have the money or accessories to compete with Wallmart.

Any young guys who are listening to this dialogue, should also see Taimur Rehmans tutorials on political science, economics and also his LUMS lectures. Outstanding academician, scholar, speaker and teacher.

"Yeh jo karay ga uska Mazar kahan banay ga" was epic by Shehzad. Great podcast

He actually makes some brilliant points backed with data. If we look at India, Modi is doing the same thing. He is giving incentives to Tata, Ambani, Adani (using them as state tools) to create large scale industries. He is incentivising sectors through PLI which create growth like electronics manufacturing, capital goods and defense. He is putting trade barriers to protect local economy. Investing heavily in technology like UPI, JanDhan, ONDC etc.

Very hot discussion. Amazing!! What a classy podcast.

Very well expanation of the Left Perspective in the contemporary politics...The host gave tough time but all the questions were answered politily,logically, and patiently...collected lot of onowledge.thanks

we need more conversations like this for bringing social change in Pakistan. Only social change will challenge forces of status quo and bring economic change.

The core point is why will elite & establishment improve economy when they are living in super luxury. Who the hell is awam of Pakistan. When army is in the business why would they do structural reforms to kull their own companies? Get real . Nothing will change in Pakistan.Enjoy the daily comedt show

سر مزہ آگیا قسمیں 🎉

Fact Sheet about Pakistan economy -GDP -$340 billion -GDP growth -0.3% external debts-$132 billion (39% of the GDP) Exports-$35 billion+ Remittances-$30 billion Imports-$60 billion Interest rate-22% Inflation-39% Citizens below poverty line-35.7% (8.6 crore)

Teacher ❤

You can watch this episode in 4K also!

I am always (mostly) convinced by Taimur's (must try!!) ideas and study on economics. As a small business, I can totally understand the associated pain and gains. Good content Shaikh sab! :)

I wish Uzair Yunus could have been here. A number of arguments being presented by Dr.Taimur here are either flawed or incomplete.

Western economies government expenditure to GDP ratio is high e.g 40-45% but he forgot to mention that tax to GDP ratio is 35-40% as well 😂😂

Appreciate your endeavours to cover all views with an open mind!!

This man makes so much sense ❤

It was a brilliant, thought-provoking conversation.

I'm really looking forward to this podcast and the much-needed insight into the Pakistani economy. Hopefully we will get a clear understanding on what’s actually going on.

I agree with dr taimur's viewpoint on division in left ... lovely podcast btw

Before watching this video I had never heard anyone giving solutions to Pakistan economical problems and I had never seen any podcast in Pakistan where you learn a lot.

Yet another great show. And great guest. Excellent effort so proud of you 👏👏

The more the state is involved .. more goes to bureaucracy’s pocket … it doesn’t matter what you write in your constitution.

If people like Taimur Rahman are teaching economic in Pakistan universes then its not surprising to see current economic condition of Pakistan. The theories and argument presented by this gentlemen have fundamental flaws in its core basis.

Shahzad bhay thank you so much for inviting DR Taimur Rahman sb. ❤

Very informative specially with queries and responses accordingly

Very useful discussion. Thank you Shazad and the learned professor!

What the professor is actually saying is kind of utopia. This looks good when talking while you are sipping coffee. The only way a nation comes out of poverty is when it has a free market capitalist economy. ( with a good governance who gives equal opportunity to its citizens without any discrimination). South Korea,Japan, Singapore, Israel are the best examples in Asia for it.

Aww, I was looking forward to get my questions asked : ( They were really good!

How much difficult to explain to any Pakistani that it is not IMF that is going to fix their economy. It is not their job.

He argues that western contries contribute a high percentage of government funds to the GDP. What he fails to mention is that this government expenditure is made towards education, public services, socialised healthcare (euro countries) etc.

2020 Tak Pakistan Chaand Par Baithkar, Dharti Ke Faislay Kar Raha Hoga - Laal Topi ( Zaid Hamid - E - Azam )

This is the observation nicely stated

I must say this interview is really v v informative, bysted many myths. Earlier I did not v much like Dr. Sab but now I am feeling v convinced from his thoughts. Kudos. Plz make more podcasts with hjm to let us, non-economics students gain more clear concepts about macro economy. This is a very appreciable show!!🎉🎉

Despite your health at the time it was a delightful podcast. Prof Taimur always makes his points eleqointly even when I totally disagree with his perspective &/or analysis. Cant wait for the rest of this Lahore Session. Keep up the great work Shehzad!

That "To phir me na hi samjhun" by shehzad cracked me up 😂

Great economist! Love Pakistani economists!

Apologies Dr. Taimur, but it is not IMF's problem that even after bailing Pakistan's economy out more than a dozen times, Pakistan's export industry has not created enough value addition on its imported raw materials, that devaluation of Pakistan's currency still does not translate to substantial increase in Pakistani exports' competitiveness. The core problem lies in the elite capture of political economy, red-tapism and control of establishment in Pakistan's economy, that doesn't let Pakistan get out of its cycle of debts. I do agree that strategically important sectors should have govt control of export-import, but to base an economy entirely on the idea of protectionism, doesn't lead it anywhere in the long run. It rather creates more red-tapism and corruption of bureaucracy. A good example is the Licence-Raj period in India. Secondly, your argument that Pakistan's economic policy especially viz-a-viz import restrictions and currency value, has been strictly dictated by IMF during the entire period of 3-4 decades, is honestly a weak argument and sounds like an easy escape. Many govts in the past in Pakistan have often manipulated exchange rates e.g. Musharraf and Ishaq Dar, for lengthy durations, so the evidence here suggests otherwise. It is only now after 3-4 decades of carrying Pakistan's economy (and also the fact that Afghanistan and hence Pakistan has lost its strategic significance it once had), that IMF is so strict on having their way with Pakistan's future economic policy.

Thank you Shahzad for any other great podcast 📻 ❤️

His comment on govt expenditure to GDP is very misleading. Look at the tax intake of those countries like US or UK. It is slightly less than govt expenditure, so the metric one needs to look at is Govt Expenditure/ Tax. For US or Western countries it is under 1.5. In Pakistan it is > 2. So even though Govt expenditure is lesser as percentage of GDP , you "loose" the right to spend if your tax system is leaky. Which is the case with 3rd world countries. And I am not accounting for corruption etc in poor countries

I think Marx also said relegion is opium of masses..Yeh sach hi hai 😢

My dad (late) was inclined towards left and had been politically active among the left movements too. What I observed is that left is comprised of free thinking intellectuals and artists of all types, things which are frowned upon in our extreme theistic society. This has been a significant impediment to left’s political success, especially with the association of communism/socialism/marxism with atheism.

Excellent Podcast . Shehzad you have been improving, fantastic questioning and good strength on Economic policies. Keep up the great work buddy.

In India banks are following individuals to give Home loans and personal loans, very strange to hear that this is not very prevalent in Pakistan.

Was eagerly waiting for this podcast. Thanks shehzad bhai. Bas aik gila hai. ENGINEER sahb wali podcast expectations py nai utri

That's a great podcast. Thank you Shehzad for this interactive session with Dr. Taimoor. You didn't ask my questions as I was waiting for that🥺. Anyway keep it up man💯

Just saw both of you eating wuth Engineer Muhammad Ali Mirza. I then watched both of the podcats, and man both of you did a fantastic job. I'm glad i found your channels. Looking forward to all og your podcasts from now on.

Very good podcast ❤

Excellent show...loved the guest!!

Appreciate taimur rahman sahib analysis.. great suggestions.. should be right people on the right chairs.

One point I agree with him is priority sector bank lending. In India, RBI does have some levers and push for say agri loans or SME loans. Why cant the SBP do that I wonder

My questions 1. Relegious fanaticism (muzhubi touch) is actually divideding people of Pakistan then how public sentiment or public unity can generate public awareness for economic policy or development of Pakistan? 2. India is growing & becoming major exporter for world then trade relationship between India & Pakistan can help Pakistan for decrease the cost of import. Thus pak can make low cost product from importing row materials from India at cheap prices and then export it at international market at competitive prices. Pakistan can also take advantage of geo location for transferring goods from thier roads or act as intermideatary. Aslo can take advantage of education as language is similar but why Pakistan is not trying to improve relationship with India? Why still not controlling terro2233m? 3. When the trade was open between india & Pak, India had given pak the status of most favoured nation for trade but why Pakistan has not given any such preference? India has provided air space for travel but Pakistan had blocked air space? Whenever india has started peace negotiations then pak has backstabed India again & again why? And when pak will realise and stop doing it? 4. Pakistan army possesses 12 percent of the country's land, out of which two-thirds is owned by senior military officers. Fauji Foundation is the world's largest military owned conglomerate worth over $20 billion. Then why IMF can't see the asset of pak army? Still subsidy & land grabbing going on...why?

Thank you very much for your very informative and very interesting program on borrowing money from IMF Taimur Rehman sahib I am a student of Commerce and belong to a business family Anyway the point you have explained very nicely If $ increase the rupees value goes down Prices of commodities will decrease But if we are importing Raw Material from outside We have to pay in $ After processing if we want to export the commodity Because of the high price of $ The price of the commodity naturally will be more Nobody would like to buy our products

This podcast will trigger so many hardcore capitalists

SME/ MSME can compete with bigger brand. I couldn't understand his setup there. Be it in tech/ product based or service based, in India most of MSME has been competing with larger brands. Obviously they might eventually end up bought by the same big fish😅

I believe in capitalism but the argument was even rational ,humble and knowledgeable ❤

Gotta be my fav podcaste bcz docter shb is there ❤

Very good discussion ❤

Next time koi Star Wars ka economic expert bulana. Equality reality based hoga 😂

damn ..... may pakistan be blessed with more such geniuses like taimur 😇😇😇😂😂😂🤪🤪🤪

Thank u so very much absolutely love this man 🫶🙏

Another amazing episode, thanks!

Shehzad you made more sense as a non-economist than dr taimur. The military budget/ subsidies should not be cut because we have debt repayments? What kind of logic is that? Every penny counts…. The more budget we divert to health and education the better chances of developing the country

Dr Taimoor Rahman Economics is mix of Marx university as well as Labbaik ya rasool Allah university. 😂 🤣 No doubt pakistan 🇵🇰 🕌 🐫 economy is in dol drum 🥁. 😂 🤣 😂

He was spot on. China has grown exclusively due to this policy. Chengdu Metro made Lahore Metro. Here in Chengdu, Chengdu Metro was establish by Chinese government creating money in yuan, Using Chinese steel industry and construction industry, and Xinan Jiaotong University which was primarily established to create local engineers for railways. And in Lahore, we imported engineers, imported steel, imported construction equipment and imported metro or foriegn financing from Chinese Financial Institutions in a currency we do not print or control. This is a product of current free market economy setup. Dr. Sahab is absolutely spot on.

Loved it

The second half of the podcast was good. And the studio set-up and acoustics look much improved. Content was good, as it usually is. Only thing is, economic theories and encapsulated principles work in ideal situation, not in such real life situation far moved from ideal and all things remaining constant kind of situation like where Pakistan is placed currently. People blame higher interest rates, but can someone suggest any other measure that can be taken to incentivize savings as against consumption. If the real interest rate is so deeply negative like in Pakistan, people will have strong propensity to consume rather than save. Without savings, investments wont happen. Quick-fixes and band aids and chest-beating are no solutions at all.

Salam Namaste Sat Sri Akaal sab bhai behno ko🙏

dr taimur is one of my favorite person to listen to

1:00:00 It's in the hand of private because private capital is not sovereign. They make stupid decisions they would suffer whereas if sovereign make stupid decision we will suffer.

To keep a balanced view, you should invite someone from the other camp as well. Chicago school of economics/Austrian Economists/Free Market Economist. Someone from the Free-Market Camp

2 elites discussing pakistan's problem that too idealists🤣, little do they know they are the part of it!

Loved the part " Ju yeh karey ga ..Us ka mazaar kahan baney ga"

Hi Shehzad, appreciate your work! Wanted to add to the point professor made during 1:03:00 (private enterprise vs state production). If you look at most developed economies you'd see their biggest source of income is from industries like telecom, health, automobile production and sale, insurance, and other commodity production (some countries made it through oil or tourism but that's not the general pattern). All such industries require some state intervention and funding. The government can spend with much more scale and targetted effort until the player/s reach a level where specific minimum standards are set. To this day governments have majority shares in major airlines and even industries like semiconductor (which is probably the next big world industry). The probability that an innovator or disruptor comes through private ownership is at best exceptional and has only happened in already industrialized countries, so highly improbable to say the least. During 1:08:00 you gave an example. I think you still need Carbon Fiber at a cheaper price if you could sell it to the world. You could take debt in Pakistan but the rates are going to be massive. If the government backs you, probably might make it, if not, a very high chance a Chinese or American firm buys you. And yes you gave the example of Atoms. Their revenue is 0.01% of Nike. I felt that comparison was odd.

Dr. Taimur explain such concepts so easily. He is brilliant in explaining economy.

Why do capitalism and communism have to be mutually exclusive? Many countries already have hybrid systems in place such as "Communism with Chinese characteristics" and socialism.

Dr Sahab pushed hard on the left politics in Pakistan.. twas fun to watch ;d

Just enjoyed your company

Among what Ive come across unlike IMF the much worse problem for 3rd World economies has been the WTO. I've known people who've been at important meeting in my country and have been unable to secure local govt made cheap nedication or food for the poor of the nation because of WTO mandates despite having the facilty in the former and 100's of tonnes of it going to waste due to stagnation in govt. storages in latter. Systems like healthcare really do struggle in densely populated countries because of such mandates.

IMF is a lender n would put conditions to ensure that its loan is secured.. If you are so much against it then don’t go to IMF.. Manage your affairs with your own funds. Taimur is not talking about productivity, Innovation, R&D etc. playing an important role in economic development… Govt should never sit in Businesses rather provide efficient governance to drive economic growth… So Taimur is absolutely wrong n misleading…

best podcast, shehzad keep it up the good work

Awesome podcast

Perils of free economy are true.Totally agree .First we in the third world countries have to provide minimum basic to the people.

him using word utopia in condescending manner is funny.

Please do comment like this or any other comment...if you want to continue to watch free content like this because it encourages KZfaq algorithm to give this video more reach and more views....Keep doing the good work sir ....

I am shocked that this guy taught economics. I feel sorry for his pupils. What absurd and silly economic view.

India also removed all Import Restrictions in 1991, and allowed Foreign Capitalists to Invest and Take Up a Significant Chunk of Indian Economy. Taimur Rahman is wrong, when he says that there should be import restrictions. The ppl in power in Pakistan don't want to dilute their power, which is IMF recommendations aren't followed.

Maza aaya 👍

Worth watching podcast to understand pakistan economy crisis

Capitalist Adani Bought Port From Communist Government in Kerala Kerala Government literally begged him to invest their port.

Dr. Taimur is always a delight

Great episode!

Very nice talk show

Apologizes to this gentleman...but his ideas were implemented in Bengal...and we can see the devastation.... Venezuela is a other example....🙄

Most of finance minister in have been either accountant, banker or pencil pusher like Sheikh Shahib. Thats why Pakistan does not have economic policy since 1947 except during PPP govt in 70s.

No talk about the Free Trade Agreement between Pakistan and China!

problem is that ... protection does not help consumers and creates local monopolies

Bro can you have debates on your podcast with people with from different viewpoints