Wednesday, June 28, 2023

What is Daronomics ?

 Daronomics is a term coined to describe the economic policies of Ishaq Dar, a former finance minister of Pakistan

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 Dar's policies have been criticized for their short-term focus, which has led to distortions and worsened structural imbalances in the Pakistani economy
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One of the key features of Daronomics is the fixation on fixing the currency price, which has led to an overvalued Pakistani rupee and made exports uncompetitive in the international market
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 Dar's approach was to keep the greenback's value artificially around Rs90 by pumping dollars into the market
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 However, this approach is problematic because fixing prices has never worked, and market forces eventually lead to worse consequences
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Dar's policies have been described as problematic because of his inability to understand fundamental realities and principles of economics
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 Critics have also pointed out that political leaders and the military in Pakistan prefer to hire chartered accountants and bankers over economists and appoint them as financial czars
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Overall, Daronomics has been a controversial topic in Pakistan, with some commentators giving a "yes" or "no" answer to whether it is good or bad for the economy
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 However, this response is generally not based on objective criteria but on political partiality
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In conclusion, Daronomics refers to the economic policies of Ishaq Dar, a former finance minister of Pakistan. His policies have been criticized for their short-term focus, fixation on fixing the currency price, and inability to understand fundamental realities and principles of economics.

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