Deputy Secretary Information PTI says we are going to back to 2017-2018.

[Patriot forever]

The whole purpose of the reserve is stop manipulation or speculation attacks and if that purpose is gone that reserve will wanish anyway because people not deal in PKR like Zimbawe and only will be dealing dollars. So dollar will wiped out in days not months from the reserve.

Artificial overvalued currency does that which plmn did, the falling reserves in 2017 and 2018 is evident, ultimately you run out of dollars to supply dollars at that fixed overvalued rate. When that happens dollars start trading in the black market at a much higher cost leading to hyper inflation. Which happened in Lebanon etc.

Fixed overvalued currency leads to a differential in SBP overvalued rate and the market rate based on supply and demand dynamics.

Market based currency prevents such from happening.

 

[Norwegian]

What benefits we got from devalued rupee?

Saved foreign exchange reserves. That's the whole idea behind devaluation.

 

[313ghazi]

Yes to save Pakistan. It is a pressure on Imran Khan because failed to control inflation in Pakistan since 3 years.

Pakistan witness highest inflation in Covid period just behind Iran and even not beating a default country Sri Lanka ,which only hard 2.6 billion dollar reserve and they had to pay 5 billion of debt in 6 months. Imran Khan is the worst administrator Pakistan ever witnessed. He is good at talking only but zero at ground level.

I'd be interested to see what we're importing. If it's stuff that will help setup industry - maybe the short term pain is worth it. I suspect it's still frivolous stuff.

There are a million things that could be done to help this situation but the govt just doesn't seem to want to make drastic steps.

It seems we've moved from incompetence and heavy corruption to incompetence with somewhat reduced corruption (at least at the top).

 

[Desprado]

Saved foreign exchange reserves. That's the whole idea behind devaluation.

We will not save. As if IMF program end prematurely we will have to pay 7.8 billion dollar in 6 months, We can convince China but we are agreement with KSA and UAE that we will pay them there deposit whenever our IMF program ends so we will have give them back their 3 billion dollar, we have to pay 13th October 1 billion dollar euro bond maturity. So altogether it is all debt and we have not earned by exports and inflows.

We wasted our time Since PTI came that devaluation brings joys, export increase and import increase that totally opposite and legacy of PTI in finance is finished because they are doing what PMLN did in a much worse manner. It is because did not had any plan for our economy and they are just doing time pass just fulfill there 5 years of terms and they do not hope to win next election as they are just forcefully working, PTI has lost the heart because they fail to counter inflation.


For IMF program. What will Shaukat Tarin tell IMF when they ask that you have the commitment with us that you will only 2.5 billion CAD this FY ,which was also said in Shaukat Tarin budget speech. They will say you breach your commeitment twice and that is why Shaukat Tarin is going to IMF Washington 13th October because they are not convinced with PTI because they have breached their commitment with IMF 3 times (Electricity prices, SBP Act 2021, and now CAD). Trust me we are only weak line and this all due to Shaukat Tarin hire because he very bad history with IMF and just like he did with PPP in 2009 but now he doing a much faster rate than that to PPP. Hafeez saved them in 2010 and neogaited IMF program properly but he was disgracefully kicked out by PTI. So now we are on mercy of IMF and depends on their mood.

Insallah IMF will agree to resume our program in October 2021 ,however, Condition will be following.

1) Shaukat Tarin will be fired IMF condition

2) 20% Interest rate stop CAD

3) Devalue currency to 180 will be on cards

4) Massive Hike in Electricity.


If we had agreed to IMF in June we would avoided all that expect Massive Hike in Electricity but thanks to shaukat tarin we did the impossible and we heading towards another 2019.



@Norwegian is right our reserve our negative and we are on mercy of IMF program review in October. All reserve will be vanished IMF we do not resume IMF program in October.

@Patriot forever the reserve are meaning less if we do not resume IMF program and Shaukat tarin is a barrier for IMF program and IMF never allows CAD and Shaukat Already exhausted CAD in 2 month what he committed with IMF in June 2021.

 

[Norwegian]

It is a pressure on Imran Khan because failed to control inflation in Pakistan since 3 years.

Failed to control inflation? Is Imran Khan doing inflation?

Pakistan witness highest inflation in Covid period

So? During same period debt to gdp fell for Pakistan while it increased even in developed economies

 

[MH.Yang]

Is it forcing Pakistan to accept refugees?

 

[Norwegian]

Imran Khan is the worst administrator Pakistan ever witnessed.

Worst administrator that saved Pakistan from default in 2018

The whole purpose of the reserve is stop manipulation or speculation attacks and if that purpose is gone that reserve will wanish anyway because people not deal in PKR like Zimbawe and only will be dealing dollars. So dollar will wiped out in days not months from the reserve.

Looks like Khota Biryani overdose @Patriot forever

 

[Desprado]

Worst administrator that saved Pakistan from default in 2018 View attachment 775456

Hafeez Sheik. He did something he did when was in PPP. Took Pakistan reserve in most positive high in 2011 and 31 billion dollar export without GSP+ status.

Now you show should comparison should be Dar vs Shaukat Tarin but your data will benefit Dar because they way Shaukat Tarin has applied the method.

 

[Patriot forever]

I'd be interested to see what we're importing. If it's stuff that will help setup industry - maybe the short term pain is worth it. I suspect it's still frivolous stuff.

There are a million things that could be done to help this situation but the govt just doesn't seem to want to make drastic steps.

It seems we've moved from incompetence and heavy corruption to incompetence with somewhat reduced corruption (at least at the top).

It's the international inflation cycle. We are not importing more but paying more for our imports to a great deal. Only essential imports have jumped up e.g. Crude fertiliser raw materials textile imports etc that are needed to sustain growth.

Hardly we can save a couple of hundred million if we go full on import ban.

The August figures are not out yet but July and June will give an idea.

 

[Norwegian]

they do not hope to win next election as they are just forcefully working, PTI has lost the heart because they fail to counter inflation.

Hahahaha. Straight from Maryam Nawaz media cell
@Patriot forever @Del @Dual Wielder

 

[Desprado]

Hahahaha. Straight from Maryam Nawaz media cell
@Patriot forever @Del @Dual Wielder

no. All Political Parties are cancer. Maryam is worse cancer.

Pakistan can only be governed with King style or Dictatorship as UAE, KSA, Jordan and most Muslim countries has.

Pakistan always progressed under Dictatorship like Musharf, Ayub Khan and Zai.

In democracy we are always chasing ghost and just waiting for 5 years to cover and get another lollipop from Parties in a different manner. Our Relationship, diplomacy and Economy has always progressed under Dictatorship and all the progress reverses when ever democracy came to Pakistan.

 

[Zibago]

You rather have the entire country default on its payments just so people have few months of cheap consumption

Yai Norwegian is a chutyia of the highest order. He's been drinking all that sweat of imran Khan's ball for god knows how long. Living outside, earning in dollars and talking about devaluing currency.

Ever heard of a country called Lebanon ?

 

[Mentee]

Entertainment allowance that was used for tea parties has been dead for years now so its nothing more than political jargon

It was in the audit books and I've seen it. Samaa broke the news i guess two months earlier

 

[Norwegian]

Yai Norwegian is a chutyia of the highest order. He's been drinking all that sweat of imran Khan's ball for god knows how long. Living outside, earning in dollars and talking about devaluing currency.

Dumbo it's better to devalue currency than to default on external payments every 5 years

 

[El Sidd]

Needless to say corruption levels are not the same as 2017-18.

I am sure GoP has graphs, curves and pie charts ready for calming the nerves of business sector dealing with post pandemic market shuffle.