Bailout or not bailout during recession

Abstract

This paper is written to present the shortcoming of capitalism to stabilize the economy from recession and Covid -19 pandemic. The capitalist economy is on the brink of its collapse is the main argument of this article. After establishing this argument and the reason behind this collapse, which is the debt-oriented economy and domination of the financial sector over the non-financial sector. I present my alternative Islamic solution for Pakistan under this pandemic condition. My fundamental demand is that the GOP immediately repudiate all its financial contracts, both bilateral and multilateral. All the policies regarding the liberalization of the economy immediately stop and domestic policies for our national interest should be implemented.