Exports have increased by 24% in rupee terms

[xyxmt]

my numbers are showing what I mentioned in the original post. That quantity of exports have increased. And also that export industry has earned more revenue in rupee terms. And also that dollar revenue has not changed much.

See my post above in response to Death Professor on why it matters.

my question is why is this a good news when you gave 1.4 tons of rice for the same price you were giving 1 ton of rice. this is not a good news, you export commodities, you are giving more food to importers for the same price as before...this is what Western economists told you what they kept a secret is that your 90% exports are commodities. Net result is your plate is getting smaller.

Add: why westerners and WB and IMF always insist of currency devaluation...more good for them for same $$$ and an added benefit: increases poverty in your country, their main objective.

 

[VCheng]

I keep listening to TV Analysts saying that exchange rate devaluation has not increased exports.... This is TOTALLY wrong!

The quantity of exports has increased significantly during the first six months of fiscal year 2019 compared to similar period last year. This is true especially for value-added textile exports (see table 5.5 on page 68 here: http://www.sbp.org.pk/repo…/quarterly/fy19/Second/Chap-5.pdf)

In rupee terms, exports have increased by 24% over similar period (see here: http://www.sbp.org.pk/publications/export/2019/Jan/1.pdf).

How big is this number? This is Rs355bn extra in revenue for the export industry.

Yes, the dollar revenue from exports has not increased as much. But it is wrong to say that exports have not increased. The effect of exchange rate devaluation on quantity of exports is quite obvious.

This is excellent news. If PMIK accepts IMF conditionalities, we can expect the exports to go up further in rupee terms without increasing much in dollar terms, if the same logic holds true.

 

[xyxmt]

This is excellent news. If PMIK accepts IMF conditionalities, we can expect the exports to go up further in rupee terms without increasing much in dollar terms, if the same logic holds true.

PTI supporters were celebrating Rupee devaluation and cursing Dar for keeping rupee value high and finally a messiah in the form Asad Umer have realized this and devalued rupee, hail to corporate economist. IMF would let go any condition if you only accept currency devaluation, more you devalue more loan you will get till you get to the point where you one Rupee can only get half a grain of rice.

the real currency is Commodity, less you give for more money makes you wealthy, more you give for less money will break you sooner or later

 

[Syed1.]

Rupee terms mein achaar dalna hai kya?


dolla chahye bhai dolla

 

[ziaulislam]

I keep listening to TV Analysts saying that exchange rate devaluation has not increased exports.... This is TOTALLY wrong!

The quantity of exports has increased significantly during the first six months of fiscal year 2019 compared to similar period last year. This is true especially for value-added textile exports (see table 5.5 on page 68 here: http://www.sbp.org.pk/repo…/quarterly/fy19/Second/Chap-5.pdf)

In rupee terms, exports have increased by 24% over similar period (see here: http://www.sbp.org.pk/publications/export/2019/Jan/1.pdf).

How big is this number? This is Rs355bn extra in revenue for the export industry.

Yes, the dollar revenue from exports has not increased as much. But it is wrong to say that exports have not increased. The effect of exchange rate devaluation on quantity of exports is quite obvious.

The effect will be visible in 6-8 months from now..
Your assessment is wrong rupees value doesn't matter

 

[AZ1]

my question is why is this a good news when you gave 1.4 tons of rice for the same price you were giving 1 ton of rice. this is not a good news, you export commodities, you are giving more food to importers for the same price as before...this is what Western economists told you what they kept a secret is that your 90% exports are commodities. Net result is your plate is getting smaller.

Add: why westerners and WB and IMF always insist of currency devaluation...more good for them for same $$$ and an added benefit: increases poverty in your country, their main objective.

This policy is to bring dollars in country as we have to payback loan in dollars and not in rupees.

 

[SecularNationalist]

the point I am highlighting here is that devaluation has helped exports as intended.

This is the first time i am hearing the devaluation of rupee was intended to increase exports.
A few months ago when this devaluation started the incumbent government was blaming it on the previous government and amount of foreign debts they have to take.

 

[CrazyZ]

The drop in PKR will cause inflation inside Pakistan, however our dollar labor costs relative to other nations have come down. Pakistan may know be cheaper for low end manufacturing relative to India, Vietnam even Bangladesh. Now is the time push exports of low end manufacturing, in particular garments, and especially to China, GCC, and Russia. Combined with import replacement of energy using Thar coal and Hydro... forex crisis will be a thing of the past.

 

[volatile]

Exports are done to get US $ ,Infact this 24% increase in rupees is termed as failure since we buy major utilities in dollar term so putting more strain on Imports

 

[ajpirzada]

my question is why is this a good news when you gave 1.4 tons of rice for the same price you were giving 1 ton of rice. this is not a good news, you export commodities, you are giving more food to importers for the same price as before...this is what Western economists told you what they kept a secret is that your 90% exports are commodities. Net result is your plate is getting smaller.

Add: why westerners and WB and IMF always insist of currency devaluation...more good for them for same $$$ and an added benefit: increases poverty in your country, their main objective.

First, it is mostly textile exports which have gone up (see SBP data).

Second, it is indeed a good news. Why? Because jobs depend on how much you are producing. If you are producing more, you need more labour hours.

PTI supporters were celebrating Rupee devaluation and cursing Dar for keeping rupee value high and finally a messiah in the form Asad Umer have realized this and devalued rupee, hail to corporate economist. IMF would let go any condition if you only accept currency devaluation, more you devalue more loan you will get till you get to the point where you one Rupee can only get half a grain of rice.

the real currency is Commodity, less you give for more money makes you wealthy, more you give for less money will break you sooner or later

It was Miftah who allowed devaluation to happen. And yes he was right in doing so. We don't want factories to close down or operate at below capacity because we cannot compete with other countries.

The effect will be visible in 6-8 months from now..
Your assessment is wrong rupees value doesn't matter

Rupee value has gone up because factories are now selling more than before. And, if you want to produce more, you have to hire more labour hours. Do we not care about jobs?

This is the first time i am hearing the devaluation of rupee was intended to increase exports.
A few months ago when this devaluation started the incumbent government was blaming it on the previous government and amount of foreign debts they have to take.

I dont know what the government was saying. But there are plenty of articles arguing that exchange rate needs to be devalued to increase exports.

 

[VCheng]

PTI supporters were celebrating Rupee devaluation and cursing Dar for keeping rupee value high and finally a messiah in the form Asad Umer have realized this and devalued rupee, hail to corporate economist. IMF would let go any condition if you only accept currency devaluation, more you devalue more loan you will get till you get to the point where you one Rupee can only get half a grain of rice.

the real currency is Commodity, less you give for more money makes you wealthy, more you give for less money will break you sooner or later

As I said above, this is excellent news if the logic presented holds true. More jobs, more rupees for exports, same dollars. Great progress, working and producing more for the same dollars.

 

[Yaseen1]

I think jobs are not added much and capacity of industry has not raised much,one reason of raise of exports along with devaluation is due to low domestic consumption of food and other item because of rise in inflation so public living standard is declining which is not good.

 

[forcetrip]

you are selling more good for same money in $, what are you gaining?
you assumption is now you can increase quantity enough to get more $$$s, but your number are showing otherwise, you only exported 24% more goods and same $$$. your bottom line is the same, there is no gain for you

Economies of scale my friend. Once you get a foothold you start working on value adding production lines as well. You can not charge $2 for something that someone else is charging a $1. You can charge $2 for something that someone else is charging $3. Since Pakistan does not make anything anyone desperately needs its time to start from the basics. Get the orders, work those lazy people and train them into adding value to products fit for international consumption. The next 2 or 3 years will be hell. If change can not come now it will never come later. Export and taxes. Stop importing butter, cheese and the likes. Tell this population that you can have the finer things when everyone can afford them. Wishful thinking but either way thats the only way out fast. Otherwise to stabilize a country out of a $100 billion debt problem while also periodically kicking your larger neighbors *** is practically impossible.

 

[ziaulislam]

First, it is mostly textile exports which have gone up (see SBP data).

Second, it is indeed a good news. Why? Because jobs depend on how much you are producing. If you are producing more, you need more labour hours.



It was Miftah who allowed devaluation to happen. And yes he was right in doing so. We don't want factories to close down or operate at below capacity because we cannot compete with other countries.



Rupee value has gone up because factories are now selling more than before. And, if you want to produce more, you have to hire more labour hours. Do we not care about jobs?



I dont know what the government was saying. But there are plenty of articles arguing that exchange rate needs to be devalued to increase exports.

What are we discussing jobs here?
Current account deficit has continued acted due to modest growth in exports (2-3%) and incredible growth in remittances

 

[xyxmt]

First, it is mostly textile exports which have gone up (see SBP data).

Second, it is indeed a good news. Why? Because jobs depend on how much you are producing. If you are producing more, you need more labour hours.

what white men taught you is good for them not for you, well lets bring rupee down to 200 and more prosperity for Pakistan and IMF will give extra bonus of 6 billion on this achievement because now they will get 2 tons of rice for same $$$.