For all their differences, the global financial crisis and the corona financial crisis are similar in one respect — they both teach us life-enhancing lessons.
Duvvuri Subbarao writes: Unlike rich countries which can throw the kitchen sink at the crisis, India can’t afford to ignore the risks of fiscal excess of that magnitude, no matter the compelling circumstances.
It’s completely irrational to not admit the true fiscal deficit. We are fooling no one, least of all potential investors who base their decisions on our macro sustainability.
If institutions such as FATF continue to keep Pakistan on the grey list or even blacklist it, and IMF imposes more stringent conditionalities, global investor confidence in Pakistan could nosedive, deepening the economic crisis.
