Case Discussion Questions
Pakistan seems to have persistent economic problems. Why do you think this is the case?
What are the conditions attached to the current IMF bailout designed to achieve? If implemented correctly, do you think they will improve Pakistans finances?
The U.S. dollar exchange rate fell from $1 = 142 rupees to $1 = 163 rupees in the immediate aftermath of the IMF bailout deal being announced. What is the likely impact of this currency devaluation of the Pakistani economy?
Given that Pakistan has already had 12 prior IMF bailouts, what confidence do you have that this bailout will produce the desired results? Should the IMF continue to give funds to countries like Pakistan that seem unable to solve their structural economic problems?
The Chinese Belt and Road initiative has resulted in Pakistan being heavily indebted to China. Does China have an obligation to help Pakistan here?
Why do rescue packages of this nature matter to an international business doing business in the country, or considering doing so?
