Dual Currency System, An Idea to Devolve the Import Current Account Problem of Pakistan

[HAIDER]

 

[Abdul Rehman Majeed]

Literally everyone on this thread seems to not understand my proposed dual currency system.

Re-read my posts about how it works.

You are pretending that it's a simple peg or a currency board system.

It is neither of those things.

You should have tagged PDF's resident economists @ziaulislam

 

[ziaulislam]

You should have tagged PDF's resident economists @ziaulislam

Pretty stupid thread
Govt desire/people desire is not to compete or export

Of you want off load the central bank then do what other countries(failed countries) have done


Simply adopt the dollar as a currency(>10 countries use USA dollar as currency)

Or use indian rupee

View attachment 856813

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Blame the educated liberal and silent majority(neutral people)

IK couldnt even make a 1 lac people go out in a population of 12 crore adults

That is less then 0.1% of the people..

 

[Communism]

Pretty stupid thread
Govt desire/people desire is not to compete or export

Of you want off load the central bank then do what other countries(failed countries) have done


Simply adopt the dollar as a currency(>10 countries use USA dollar as currency)

Or use indian rupee


Blame the educated liberal and silent majority(neutral people)

IK couldnt even make a 1 lac people go out in a population of 12 crore adults

That is less then 0.1% of the people..

Simply using Dollar or Euro as your de facto currency has massive drawbacks though.

This system that I have outlined is an attempt to get the benefits while limiting the harms.

I don't think that Pakistan is forever fundamentally broken, I think Pakistan is simply broken due to having the wrong incentive structure.

 

[ziaulislam]

Simply using Dollar or Euro as your de facto currency has massive drawbacks though.

This system that I have outlined is an attempt to get the benefits while limiting the harms.

I don't think that Pakistan is forever fundamentally broken, I think Pakistan is simply broken due to having the wrong incentive structure.

Pakistan is broken because of delustionals fed to its people that corruption is fine by its elite, selling your body (& people to drones & war) is fine and that its a necessity to counter india

Once that delusion is gone that surely there is great talent in pakistan

 

[Communism]

Pakistan is broken because of delustionals fed to its people that corruption is fine by its elite, selling your body (& people to drones & war) is fine and that its a necessity to counter india

Once that delusion is gone that surely there is great talent in pakistan

Even without fixing any of those problems, I think it is possible to fix pakistan's most fundamental economic problems as long as the elite can be convinced to change their corruption and scams to a different set of corruption and scams that are more economically productive.

That's pretty much what my posts on this thread is advocating for.

Corrupt elites that are more economically productive.

 

[Wood]

The man didn't even know even if you use USD to deal with import, that does not shrink the demand of your own currency, because import/export and domestic market goes hand in hand. You buy crude oil with USD but you pay the people who process them in Pakistan with Pakistan Rupee, and everything from the gas station attendant to the car mechanic that have no connection to the import of crude oil would not be dealing with USD, because if so, every economic activities would be paying in USD.......

On the other hand, how much USD you can get your hand on? Remittances is not going to be enough to cover majority economic event. And what about those people who don't have relative in US? You only earn USD (if they are willing to pay it on the other hand) if you have the first "Starter" money to make goods and trade. So if they don't have the money to make goods, how are they going to do import/export? All those issue is going to hit Pakistani economy harder than the devaluation of their own currency.

This is truly the most comedic economic theory that I've read on this forum. Thanks to the internet for bringing such wonderful ideas for our entertainment

Currently, the reason why extremely non-productive sectors keep getting financing and investment is because of the ability to print USD with PKR.

Without the ability to print USD with PKR, then those non-productive investments will no longer reliably earn the investors USD denominated returns.

This will lead to deflation of the prices of those non-productive industries and products.

That demand destruction would lead to the investment automatically being redirected to the industries and sectors that can produce export profits.

The reason why Tropical climate is an extreme advantage is tropical climate is both the best agricultural environment in general, and also that the subsidized developed market agriculture simply does not have much acreage in tropical/subtropical climates, and therefore the prices of products that are specific to tropical/subtropical climates are indeed not depressed by the agricultural production coming out of developed markets with subsidized agriculture.

The solution to lots of unproductive mouths to feed is simply to reduce reproductive rate to the rate that pakistan can afford to educate the population.

In other words, reduce reproductive rate to the point where pakistan can afford to get literacy rate to 90-95%.

Literacy Rate In Pakistan 2023 Province Wise For Male And Female

Get the Latest Information About Literacy Rate In Pakistan 2023 Province Wise For Male And Female For Punjab, KPK, Sindh, and Balochistan

ilm.com.pk

You have not explained what is productive and non productive sector? You Keep recycling that nonproductive sector will not get investment and fail to say why this will happen?

Tech industry in India is run by engineers. Unlike the developed countries, not anyone can contribute to the core jobs in this industry in developing countries. Pakistan does not nearly have enough engineering talent as the significant portion of its labor force to replace other sectors. Please do not try to pass regular literate as software engineering talent

 

[jhungary]

This is truly the most comedic economic theory that I've read on this forum. Thanks to the internet for bringing such wonderful ideas for our entertainment


You have not explained what is productive and non productive sector? You Keep recycling that nonproductive sector will not get investment and fail to say why this will happen?

Tech industry in India is run by engineers. Unlike the developed countries, not anyone can contribute to the core jobs in this industry. Pakistan does not nearly have enough engineering talent as the significant portion of its labor force to replace other sectors. Please do not try to pass regular literate as software engineering talent

Well, he did applies game theory on his economy theory, as for why? I don't know.....

 

[R2D2]

Trying to bring down currency system just like Afghanistan. Things would become very costly in dollars. 5th Columnist.

 

[Communism]

It seems it is pointless to cast pearls before swine.

Especially when a large portion of the thread was crapped by CIA trolls and Indian trolls.

The only thing that this exercise has shown to me is the lack of knowledge of political economy present on this forum. The lack of knowledge of game theory on this forum. The lack of knowledge about how an economy works in real life on this forum.

 

[Abdul Rehman Majeed]

It seems it is pointless to cast pearls before swine.

Especially when a large portion of the thread was crapped by CIA trolls and Indian trolls.

The only thing that this exercise has shown to me is the lack of knowledge of political economy present on this forum. The lack of knowledge of game theory on this forum. The lack of knowledge about how an economy works in real life on this forum.

The best solution is to replace PKR with Chinese Yuan and import/export everything through China.

 

[Wood]

Post an absurd idea and self certify it as a pearl

 

[SoulSpokesman]

@Abdul Rehman Majeed

The best solution is to replace PKR with Chinese Yuan and import/export everything through China.

That is a capital idea provided PRC is willing to fund Pakistan's CAD. It is quite doable if PRC wishes to do it though.

Regards

 

[Abdul Rehman Majeed]

@Abdul Rehman Majeed

The best solution is to replace PKR with Chinese Yuan and import/export everything through China.

That is a capital idea provided PRC is willing to fund Pakistan's CAD. It is quite doable if PRC wishes to do it though.

Regards

I am sure China will accept if we ask.

 

[SoulSpokesman]

@Abdul Rehman Majeed

I am sure China will accept if we ask.

So why dont you? Neither Kaptaan sb nor your imported Crime MInister Showbaaz has done the needful

Regards