IMF Approves Loan, Thinks PKR should Depreciate by 5 - 20%

[as1mz]

So that should result in heightened inflation, a PKR USD exchange rate of close to 125 to 1. Can't be good for the economy. But again, Pakistan failed to meet their targets. Possible solutions? Do you think inflation rate will be on a speedy rise in the coming year?

Pakistan Rupee should Decline by 5 – 20% - IMF | Today in Pakistan

 

[khakhi_chaddi]

Soon we will get 2 PKR for 1 INR.

 

[AZADPAKISTAN2009]

IMF loan is not making any dent on our "GDP" level , or performance all it does it gives a fake impression of reserves , we build useless roads which yeild no value we have many roads already.

Oil is down for 12 months Pakistani economy should have been making Tones of profit due to selling food to international consumers as Food is more valued then oil !!!! You can't eat oil

 

[AugenBlick]

All emerging market currencies have been depreciating , especially after China depreciated. If Pak does not depreciate, it will lose export Competitiveness.....If Pak does depreciate, oil and hence Input costs go up stoking inflation, but I guess it is the lesser of two evils especially when Pak is so close to deflation.

 

[silent hawk]

Soon we will get 2 PKR for 1 INR.

AoA
But things are cheaper in India.
Regards

 

[MEAGAN FOXSS]

Imfs main purpose is to destroy economies of other countries.

 

[AZADPAKISTAN2009]

Privatization Steps:

-1 Economic sanctions or hurdles are placed to reduce trade for country intentionally
0- Local Banks are made weak so they don't finance local initiatives
1- IMF Keeps telling governments that they need loan
2- IMF Sell them loans
3- Devalue the currency of nation so its assets loose value (Get cheaper), happens in currency market
4- IMF Sell more loans, to offset problems due to falling currency prices
5- Collect High interest , and modify loan taker's inner laws to allow more economic abuse
6 - Devalue the currency more for nation (Stuff gets cheaper to buy if you are outsider)
7- Sell more loans (For useless things like road or dirt wall or paint job never for energy or economic booster projects)
8- Devalue the currency some more , so assets loose value (Get Cheaper)
9 - PRIVATIZATION
10- Group of investors from outside , move in with pennies which now value like thousands due to loans
11- Purchase of expensive property , industries , energy resources in country at CHEAP CHEAP CHEAP rate
12 - Hike the Prices of water, energy , food once resources are purchased
13- Country which owned the assets now its citizens become "Purchasers" to the outsiders , they need to purchase goods coming from the resources of its own country but hey have to pay to outsiders


We are at number 8 and talks of number 9 in list



Explanation #2: Story from Beneficiaries side (Foreign group's country) prespective

International Organizations, call them xyz tells citizens of rich country (USA, Canada, UK etc )
, look buy our stocks !!! and over time we will buy Oil Wells, Gold mines , Gas mines , Minerals and water resources around the country and internationally. These groups form an IPO in stock exchange , don't put a penny of their own. The stock purchasers buy stock for that company

So they get money collected from the investors "this is their market capital"

Now they put policy makers in Governments (As a group) so that Organization like IMF get $$$$ donated which they can donate to poor countries . Military is sent to countries that have strong opposition to outside Private entities owning their assets , or government is toppled

Now IMF - indirectly engages poor countries to Take Loans, tells them its must or we will down grade your economic outlook

And once the Money in country falls after taking loans over 5-10 years the "International" Group moves in forms alliances with local partner or not and take over assets, under privatization
Back home, they announce "Hey Look, we purchased a Gold Mine in Nigeria or Pakistan"
We will extract 20 Billion dollar worth of goods over 14 years , and as a result the Groups STOCK value goes up the roof!!!!




YE HAI TAJAERBEKAR TEAM! Ka Purpose !!!!



Billion Dollar IMF loan only disturbs the money balance "temporarily" , its like Heroin drug that solves your need for 2-3 hours untill you need more

 

[as1mz]

At any rate, PKR should not devalue further at this point. With the developments that are happening swirling our economy, devaluing actually may seem attractive especially if one is looking for FDI, but given what happened with the EUR, I am not a fan of depreciating currency!

 

[raj76]

Currency devaluation and Inflation is a vicious cycle as seen in the past they add fuel to each other if not cautious

 

[VCheng]

1- IMF Keeps telling governments that they need loan

Wrong. IMF does not tell anyone that they need loans. It is the government of a country that makes the choice to go to the IMF for loans. The rest of your chain falls apart after that mistake.

 

[as1mz]

devaluation, depreciation, inflation pretty much go hand in hand..

 

[Faiez]

Can't be good for the economy.

what makes you think that ?

 

[Imran Khan]

no problem my savings are in $$$$$$$$$$$$$$$$

 

[Ifteqar Aisan]

Imfs main purpose is to destroy economies of other countries.

IMF/World Bank's main aims are to enforce the "Washington consensus" on countries that ask them for money. The destruction of these economies is collateral. The best way would be to avoid asking them for money.

 

[deckingraj]

IMF/World Bank's main aims are to enforce the "Washington consensus" on countries that ask them for money. The destruction of these economies is collateral. The best way would be to avoid asking them for money.

Absolutely....i believe one of the reasons for AIIB....Can someone informed please suggest as to why Pakistan not approaching AIIB?? China has a majority stake there and perhaps can help a bit, no??

I hope AIIB provides a way to swap out loans something like moving from IMF to AIIB....