Econ Mastery

17/01/2026

History of Economics

Economics evolved from moral philosophy into a scientific study of value, wealth, and resource distribution. From ancient ideas to modern models, it reflects how societies understand markets, growth, human behavior, and deals with scarcity problem.

1. Pre-Classical Era: Mercantilism & Physiocracy
2. Classical Economics (Adam Smith) & Comparative Advantage (Ricardo)
3. Marxism (Karl Marx)
4. Neoclassical Economics (Alfred Marshall)
5. Keynesian Economics (John Maynard Keynes)
6. Modern Economics (Milton Friedman)

11/06/2025

Miftah Ismail

08/06/2025

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06/06/2025

Bitcoin as Strategic Reserve

Bitcoin is the first decentralized cryptocurrency. It records transactions on a public ledger and generates new units through solving complex mathematical problems. It operates independently of any central bank. Bitcoin is highly volatile. It had a price of zero when introduced. In 2011, it reached $1. On November 22, 2024, it crossed $100,000 for the first time. Today, it is worth $102,836.30. It has also been used by criminals and terrorists for illegal activities.

Bitcoin as Strategic Reserve, the plan was unveiled by Bilal bin Saqib who is Minister of State for Crypto & Blockchain, CEO of the Pakistan Crypto Council (PCC) and Chief Advisor to the finance minister, during the Bitcoin Vegas 2025 event in Las Vegas last week.

Government of Pakistan is planning to use Bitcoin as its Strategic Reserve. But the question arises is it safe for Pakistan to do it. The coin has two sides. Bitcoin can add variety to Pakistan’s reserve which is now gold and US dollars. As of May 30, 2025, Pakistan’s total liquid foreign reserves stood at $16.60 billion. It may reduce dependency on US dollars. But it is highly volatile can be dangerous to Pakistan’s economy. It has no legal backing from central banks, as it does not function like traditional money. Money has three main functions: a medium of exchange, a store of value, and a unit of account. Some argue that Bitcoin can function as a medium of exchange and a store of value, but it's less effective as a unit of account due to its volatility.

Pakistan faces electricity problems due to its high cost for consumers and circular debt (Unpaid dues within the power sector) which is now Rs 2.396 trillion rupees. The Government of Pakistan is allocating 2,000 megawatts of electricity for bitcoin mining. This amount of electricity can power a large city, a significant number of businesses, or even the entire electrical grid of a smaller country.

In conclusion, Pakistan faces reserve problems, current account deficits, foreign loan dependency, and severe circular debt. Meanwhile, consumers are burdened by high electricity bills. Should Pakistan use Bitcoin as strategic reserve? Has Pakistan developed a clear framework for this move? Is the country capable of implementing it effectively? Why not to priorities industrial, service, and agricultural sector for increasing exports and producing final goods.

Time will reveal the results. For now, it is difficult to fully understand the government’s strategy. What’s your view on this decision to make Bitcoin a strategic reserve.

Writer - Qamaruddin Khichi

05/06/2025

Opportunity Cost

Anything what you give up to get something is called opportunity cost. Next best thing forgone is the opportunity cost of the best thing we chose.

Examples -

1. Increasing defence budget costs government to decrease development budget. (Decreased development budget is the opportunity cost of increased defence budget)
2. Studying for an hour costs not enjoying, playing, watching movies, or hanging out with friends.
3. For learning economics, you need to give up learning another thing (at least for that time whenever you learn economics)

It's not good or bad, it's just what is more important for us. Opportunity cost is the most often repeated term in economics to make us understand what is the best out of the bests.

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05/06/2025

Budgeting on sacrifice

The government plans to collect Rs14 trillion in taxes and spend about Rs23 trillion, mostly on federal needs. Defence spending will rise, so development projects may get fewer funds. Provinces may not reduce their own spending, creating more pressure. The salaried class paid huge taxes, almost 50% more than last year, even during hard times. If rich people like real estate investors get tax relief and no new people are taxed, the system will remain unfair. The country has a chance to fix problems, but only if real actions are taken—not just promises. People now deserve something good in return.

Article - We have a moment of opportunity here. The economy has stabilised. The inflationary fire has been doused, the deficits bridged, the exchange rate is on an even keel and foreign exchange reserves are on an upward path. Beyond this, the government enjoys the backing of the powerful establishment and there is no opposition to speak of. Rarely have conditions been this favourable to do something big and transformative.

Rarely have conditions been so favourable for a government to do something big and transformative.

04/06/2025

Govt to priorities high-value projects as development budget stands at Rs880bn only: Ahsan Iqbal

The government has only Rs880 billion for development in the 2025–26 budget, so it will focus on important and nearly finished projects. This small budget is due to high loan repayments and past borrowing. Most of the money will go to roads, energy, and water projects. Special areas like Gilgit-Baltistan and merged districts will still get funds. The government plans to stop low-priority projects and hand over provincial ones back to provinces. Pakistan also plans to increase exports, remittances, and tax collection. The minister said higher education and big dams will also get money as they are very important.

PM allocates Rs120bn of Rs1tr development budget to upgrade N-25 Highway in Balochistan; says govt to prioritise projects of "strategic importance" in PSDP.

03/06/2025

Budgetary Disillusionment Runs High

Business community in Pakistan is unhappy with the upcoming budget. Finance Minister Aurangzeb promises bold changes, but business leaders are doubtful. The Pakistan Business Council (PBC) says real reforms are missing and stresses the need for fair taxes, better exports, and support for industries. Experts say the government focuses too much on collecting taxes and not enough on helping people or planning for the future. They warn that raising taxes on struggling sectors and ignoring human development could hurt the economy more. Real, long-term changes are needed to fix the country’s problems.

"Many of the actions taken by economic ministries are labelled as structural reforms, but in reality, little has changed".

02/06/2025

I'm Qamaruddin Khichi , I have done graduation in Economics from University of Sindh, Jamshoro. I have created this page to share my knowledge about Economics.