I'm wondering how are you saying that zero interest rate is miraculously gonna fix the supply side?
Zero interest rate means people are going to spend, but that doesn't mean what they're going to buy is going to multiply. Investment does not mean that automatically we will have a huge supply! Resources are scarce. If they aren't scarce they come without price e.g. air.
Zero interest rate also means domestic investors will shift their FINANCIAL investments to other countries where there is at least rate of return, even a low rate of return(which is better than zero)!
They will supply rupee and demand foreign currencies esp. dollar or euro in foreign exchange markets which will depreciate the rupee. Result? Further inflation. Now depreciation in rupee will make imports more expensive! And that means Oil will be more expensive and it will raise other commodity prices which are linked to the Oil price. Inflation!
You're assuming investments are going to fix everything and beef up supplies. Can you tell us where will those investments come from and in what sectors will they be invested in? FDIs? Or domestic financial investors instead of taking their capital to financial markets abroad will decide let's invest in Pakistani mining or transportation? Risky business! Are their investments going to pay them back? Instead they will take a more reliable route and take their capital abroad to secure it.
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He that increaseth knowledge increaseth sorrow (Ecclesiastes 1:18)
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