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This is what I have telling about, the amount of depreciation in REER of pkr is record in plmn time.
This is what happens when one prints 7 trillion rupees coupled with meager growth in inflows and massive growth in external outflows. ( These are the biggest factors that affect currency).
With the SBP printing and pkr depreciation comes massive inflation. In order to sudbue that inflation they artificially manipulated currency ( since economy was highly import dependant). Couple that with compromised central Bank and incompetent finance ministry that is non existant monetary policy ( interest rate) on SBP part and fiscal policy ( tax regime to control consumption) on finance ministry part, it was a cycle of complete destruction.
Furthermore they levied irrational taxes on greater than 50k pkr transactions and such measures promoting massive shift in favour of cash undocumented economy. I remember during that time we sold a plot and the buyer paid ( North of 2 crore) through cash in locker with the same bank ( same branch) he had the account in and paid down-payment through check. It took us the whole day moving cash in multiple trips to our bank. The money was all clean.
When ppp left our economy was in a much better position with currency, momentum in exports, and balanced monetary and fiscal policy combination to check in runaway externals and consumption.
GDP numbers in dollars is irrelevant when one is actively subsidising currency.
@Jungibaaz @Pak Nationalist
