There is hope continuity of political process may ease economic woes

This situation can only be managed through unconventional measures, which a political government may adopt

Currency rate provides main channel that fuels inflation in country

Attempts to bring down inflation via conventional measures will be politically costly

Inflation reduction will likely come at expense of large output drop

Growth in imports will put pressure on rupee whenever economy grows at high rate

Situation requires astute policymaking but political turbulence a stumbling block

Jacking up of policy rate will further slow economy along with high inflation

SBP cautious about raising policy rate despite massive currency devaluation

If govt does not intervene in market, it will lead to unfettered capitalism