August 5 was distinguished by another dark day by Amar Khan, former Prime Minister of Pakistan and one of the greatest cricket players in the world. This was the second anniversary of his prison at Adiala Prison in Rawalpindi on suspended charge. Thanks to General Ameme Monir, Chief of Staff of the Army, Khan was detained in solitary confinement in the “death cell” of six eight years. Anyone less than that “Captain Pakistan”, as well as Khan, would have been met with the dark Riber for a long time.
The last time I spoke to Khan on April 2, 2023. We talked for an hour and a half Enlargement. I was at my residence in Baltimore, and was Khan in Lahore. We had an intensive discussion that lasted until midnight in Lahore. What we talked about?
Cricket player and the currency council
The concentration of our conversation was economic policy. Not for the first time, we struggled with what to do to extract Pakistan from the economic perishing episode. Our starting point was the rupee, which launched 48 % of its value against the US dollar since June 2021. To remove Pakistan from the ring of torment and proof of stability, it was recommended by the drug that we successfully provide in Estonia (1997), Lithuania (1994), Bulgaria (1997), and Bosnia-Heerzina (1997). In all these cases, the currency council made a trick, as they always do. In fact, since the first currency council was created in Mauritius (1849), there have been more than 70 areas of the currency, and none of them failed. Even the currency council, which John Mainard Keynes worked in the Archangel during the Russian Civil War (1918) without defect.
Just what is the currency council? The currency council notes and notes the transformed coins upon request in a foreign anchor currency, such as the US dollar, at a fixed exchange rate. Required to hold the currency reserves, equal to 100 % of its cash obligations.
The currency council does not have estimated cash salads and cannot issue credit. It has a exchange rate policy but there is no monetary policy. Its only function is to exchange the local currency that it exports to the anchor with a fatal rate. The currency of the currency council is a cloning of the anchor currency.
The currency plate does not require any preconditions and can be installed quickly. Government financial resources and state -owned institutions and trade are not required before the currency council can issue funds.
Bulgarian examples and anthinoa
I and I spent a long time in the Takbeer call in April 2023 in the discussion of the currency council that I installed in Bulgaria, when I was head of the Economic Consultant at Petar Stoyanov. In 1997, Bulgaria faced 24 % monthly inflation and a banking crisis. Once the currency plate is installed in July, excessive inflation stopped immediately. By 1998, the Solvebnt banking system was, and the market interest rates decreased from the triple numbers to 2.4 % on average, turned a huge financial deficit into a surplus, and deep depression became economical growth, and retains Bulgaria reserves to adopt a foreigner more than three times. Today, thanks to its currency council, Bulgaria has the second lowest debt ratio to GDP in the European Union, only behind Estonia.
What surprised me about Khan during that evening in 2023 is that he understood the technical details and the political repercussions of the installation of the currency council. The brainstorming session reminded me of the days when I was a state advisor in Lithuania and the head of the prime minister in Lithuania Adolfas Chtchevius (1994-1996). Not surprisingly, šleževičius was able to deal with artistic arguments and their political repercussions. After all, he obtained a doctorate from Moscow State University.
The episode of torment in Pakistan
The currency council will lead to the stability of the Pakistani economy and provide a huge confidence shock, however, Pakistan will come out of the torment link, which is characterized by a lack of confidence in the rupees, the capital journey, and the accumulation of more debts.
What is the size of the problem? Using the remaining way for the World Bank to measure a capital journey, I appreciate that the capital of Pakistan has reached 37 % of the huge debts that have accumulated Pakistan since 2000. Unfortunately for the Pakistanis, 37 % of the boxes flowing to Pakistan were removed in the first place. This perish episode requires more borrowing. For this reason, Pakistan has transferred a begging bowl to the International Monetary Fund 24 times, and the count.
While I write in the second year of Imran Khan prison on multiple fake charges, I can understand why Pakistani elites, including General Moner, want to keep him behind bars. They want to keep parking money in Dubai.
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