CAD shrinks 78pc in 2019-20

[Patriot forever]

Here is another way of looking at it with out feeling too good about it.

View attachment 653321

so in 2018 Feb real growth was achieved adjusted for devaluation ,that also shows that devaluation has no impact on export growth

Bro you got it all wrong, the value you need to use in the above equation is Pkr not Us dollar. Replace dollar values by Pkr this will give you the actual growth in export sector.
The actual growth is only negative in export sector when it can not keep up with the pace of devaluation, which is not happening here.

 

[volatile]

Bro you got it all wrong, the value you need to use in the above equation is Pkr not Us dollar. Replace dollar values by Pkr this will give you the actual growth in export sector.
The actual growth is only negative in export sector when it can not keep up with the pace of devaluation, which is not happening here.

This is even insult to injury reason being we are exporting more volumes to come up with same dollars ,I assume this logic is what you are referring to .If yes let me share with you all input costs are Dollar base so technically you are using expensive dollar to create cheaper goods .

 

[Patriot forever]

lol first you people say rupee over value then loans ,by the way you know what loan figures are now ? It is 10 Trillion added on telly of 24 Trillion ,There is no word as loan ,its loans to GDP where we are on this ? Aur kis kis ka shukriya ada kerna hai .

Rupee devaluation helps in external debt (dollars) as you no longer require to take loans to subsidize rupee. It has a negative impact on internal debt in circumstances as ours ( e.g. take energy sector the contracts signed by previous governments with IPP's were in dollars so you can imagine the impact it will have on circular debt)

This is even insult to injury reason being we are exporting more volumes to come up with same dollars ,I assume this logic is what you are referring to .If yes let me share with you all input costs are Dollar base so technically you are using expensive dollar to create cheaper goods .

Nope the labour, electricity, gas,rent, repayment of debt if any taken by exporter are all in rupees. Pakistan major exports are all domestic with little imported raw material impact.

You do employ more people, you do earn more profits in Pkr, more factories are running. Your base has expanded.

 

[Yaseen1]

import of raw material and industrial machinery is needed when you develop technology items and add value to products but we are mostly exporting raw materials without added value except for few textile products and not improving industry which is bad indicator for our economy

Rupee devaluation helps in external debt (dollars) as you no longer require to take loans to subsidize rupee. It has a negative impact on internal debt in circumstances as ours ( e.g. take energy sector the contracts signed by previous governments with IPP's were in dollars so you can imagine the impact it will have on circular debt)


Nope the labour, electricity, gas,rent, repayment of debt if any taken by exporter are all in rupees. Pakistan major exports are all domestic with little imported raw material impact.View attachment 653348

You do employ more people, you do earn more profits in Pkr, more factories are running. Your base has expanded.

 

[Patriot forever]

import of raw material and industrial machinery is needed when you develop technology items and add value to products but we are mostly exporting raw materials without added value except for few textile products and not improving industry which is bad indicator for our economy

I completely agree, just take an example of marble or pink salt. We are by nature greedy people, just want to become millionaire by the end of the day, don't have patience to invest in R&D make use of local resources. It's either real state or book a container from abroad and earn cheap profit, destroy our economy in the process.
We basically have no industrial base, majority of large scale manufacturers are just foreign assembly plants be it home appliances or auto industry who are here to earn money and benefit their parent company.

 

[Cornered Tiger]

For haters, read out the full thread/story.

Jute export from Pakistan is an inspiring success story. Export of Jute products to several countries, including Australia and New Zealand, has started. I want to congratulate our manufacturers for this achievement.

This non-traditional export is a testimony of our philosophy that reducing all duties on import of raw materials facilitates exports.Duties were reduced to zero on raw jute and now our exports have been able to compete with Bangladesh and India who grow raw jute in abundance.

Source:

https://twitter.com/x/status/1285902662941245441

 

[crankthatskunk]

This is even insult to injury reason being we are exporting more volumes to come up with same dollars ,I assume this logic is what you are referring to .If yes let me share with you all input costs are Dollar base so technically you are using expensive dollar to create cheaper goods .

Well, your good friends in PPP and PMLN were devaluing Rupee for decades to increase the exports.

I am sure you were fine with that strategy.

 

[volatile]

Well, your good friends in PPP and PMLN were devaluing Rupee for decades to increase the exports.

I am sure you were fine with that strategy.

I have presented the data which shows who is devaluing .Ignorance is a blessing

Rupee devaluation helps in external debt (dollars) as you no longer require to take loans to subsidize rupee. It has a negative impact on internal debt in circumstances as ours ( e.g. take energy sector the contracts signed by previous governments with IPP's were in dollars so you can imagine the impact it will have on circular debt)

Wrong assumptions and let me tell you this is IMF theory ,who says that US $ is benchmark where many countries are barter trading as well ,India did with Iran ,China did with Russia and many countries .If i take your comments on the face value the variables you shared care to enlighten us where these are right now ,We have taken 10 Trillion Rupee Loan in 18 months ,Dollar wise our GDP is shrinked to 265 Billion US$

Nope the labour, electricity, gas,rent, repayment of debt if any taken by exporter are all in rupees. Pakistan major exports are all domestic with little imported raw material impact.

Input costs means Raw material cost which is major cotton which we are importing , electricity generated is bought in dollars cents , Furnace boil is imported for steam generation so we take higher input cost and sell it on lower margin what business model is this ? Issue is people commenting never work in any manufacturing organization ,only raw material which is resource is local i.e 2-4 % max of product cost