Pakistan’s central bank Governor Shahid Kardar resigned, the second person to quit the post in 15 months.
“I have resigned over policy differences with the government,” Kardar said in a phone interview with Bloomberg.
Despite one of the highest inflation rates in Asia, Pakistan's government objected to Kardar's attempt to bring the price inflation under control.
Kardar raised rates in September and November by half a percentage point each. The benchmark discount rate stands at 14 percent since January this year. Consumer prices in Pakistan climbed 13.1 percent in June. Government borrowing rose 58 percent to 716 billion rupees ($8.3 billion) in the last fiscal year from the previous 12 months.
Bottom line: The country is a basket case, and it is the same road the U.S. is on.
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