Pakistani Rupee climbs to five-month high vs American Dollar!

[-blitzkrieg-]

Unnecessary yes but not all import. Are you aware of how much duties and tax the governement has put on machinery import? Well do check if you happen to visit the excise office sometime. We can’t import industrial machinery because the duties and taxes have become unrealistic and infeasible. I don’t think anyone with some basic knowledge of the economy or bussiness could endorse that.

Machinery import for industries are absolutely essential and majority of tax collection comes from them. Textile is probably of the biggest if not the biggest export sector along with pharma, chemicals etc. agricultural

Can you be specific what industry you are talking about when you say tax on machinery import makes it infeasible to import.Taxes range machine to machine..
Textile indutry giants are very happy.Listen to APTMA chief's point of view
"Major textile groups of Punjab; Saphire, Suraj, Kamal, US Apparrel, Interloop, Fazal Cloth Mills, Mahmood Textile, Ayesha Group, Bhanero Group, Ejaz Group, Kohinoor Mills, Sadaaqat Textile Ltd and others have decided almost after 10 years to invest $1 billion this year to avail the export-friendly policy of the government, especially the energy policy of 7.5 cents electricity and 6.50 dollars of gas for the zero-rated export sector and long-term finance availability by the State Bank of Pakistan." All that makes excise duty and taxes on machinery a non issue to them..

 

[ziaulislam]

I am assuming rupee is on steroids again... i could be wrong

There are two simple indicstirs available on google
1. Current account deficit
2. State bank lending(printing of notes)

 

[Syed1.]

What an excellent strategy.

Push dollar up from 110 to 164 so tht people scream and shout and then slowly start bringing it back down so that people start thinking that the economy is actually progressing. All they did was cease almost all imports and make things so expensive that people are unable to make use of the Dollar. I don’t know how thats going to fare in the long run because the machinery import has all gone down almost completely. Machinery import for industry is ACTUALly what contributes towards increasing the GDP because once a machine is imported, it generates funds tens of times more that it’s cost of import. No wonder growth rate is so low. It would be a shocker if t goes anything close to 4 percent till the end of this governemens tenure.

It is for such reasons that I feel that this governement is all talk. It appears they don’t study a policy and all it’s impacts before implementing it.

You have zero knowledge of economics, I suggest you educate yourself first before running mouth.

 

[RealNapster]

This is bad news as well as good news. This will make exports from Pakistan less attractive in Dollar terms. Last I heard there were a lot of apparel as well as Home textile (Towels, bedsheets, drapes) orders that went over to Pakistan from Bangladesh because of the massive Rupee devaluation.

Bangladesh Taka is trading at 85 to the USD...

And INR trading around 70 to USD. Even if PkR reduce to 120 for USD (which is not going to happen in atleast 3 years) still we are good and much cheaper then both.

 

[Syed1.]

World's largest exporter has their currency at 7 Yuan to 1 USD.


"Increase in value of ruppee will effect exports" is a myth that has been created by the textile barons who can see their profits declining a bit if ruppee strengthens. Rather than wasting their profits on expensive vacations and ostentatious display of wealth if these textile barons actually improved their product they wouldn't have to rely on government bailouts or ruppee-dollar parity to make their mark in the world.


Typical Pakistani mentality.... Har cheez asaani se mil jaye humay mehnat na karni paray.

 

[Clutch]

What an excellent strategy.

Push dollar up from 110 to 164 so tht people scream and shout and then slowly start bringing it back down so that people start thinking that the economy is actually progressing. All they did was cease almost all imports and make things so expensive that people are unable to make use of the Dollar. I don’t know how thats going to fare in the long run because the machinery import has all gone down almost completely. Machinery import for industry is ACTUALly what contributes towards increasing the GDP because once a machine is imported, it generates funds tens of times more that it’s cost of import. No wonder growth rate is so low. It would be a shocker if t goes anything close to 4 percent till the end of this governemens tenure.

It is for such reasons that I feel that this governement is all talk. It appears they don’t study a policy and all it’s impacts before implementing it.

The economy, unlike the Pakistani mind, does not run on conspiracy theories.

The rupee-dollar exchange is not exclusively reliant on government dictation but also other market parameters.

 

[Bilal9]

And INR trading around 70 to USD. Even if PkR reduce to 120 for USD (which is not going to happen in atleast 3 years) still we are good and much cheaper then both.

We wish Pakistani brothers the best in increasing their exports. But like others said 'mehnat' is needed and govt. needs to be pro-active in easing tariffs on imported industrial inputs.

I can bad mouth Bangladesh govt. in a lot of ways, but they have been quite proactive in these areas to increase exports...

 

[PradoTLC]

I not think it is only reason as u.s and many european nations have current account deficit whereas china has current account surplus but chinese currency is much lower in value than of u.s and european nations

Wrong

China manipulates it currency..

what Pakistan has done has allowed the market to set the true value of the rupee. Which should have done from day 1.

With rupee lower, imports have been discouraged and local industry would step to fill the void. Many industries were killed off thanks to Noonie idiot economic policy of artificially keeping the rupee high. We were importing stupid things like shampoo and chocolates .... some thing our local industry could have easily supplied as an example.

 

[Kabira]

In few years time rupee should hit rs 200. IMF, Arab loans are temporary relief.

 

[Yaseen1]

the goods you mentioned are still mostly not produced in Pakistan after devaluation and growth has declined as well as less job are in market which show there is no start of production of such items,japan also has current account surplus but its currency is of low value as compared to u.s and europe so can you also accuse them of currency manipulation,i think it is better to clear concepts before making conclusions and calling whole world as wrong,there is nothing bad in accepting own mistake as human can do error due to ignorance

Wrong

China manipulates it currency..

what Pakistan has done has allowed the market to set the true value of the rupee. Which should have done from day 1.

With rupee lower, imports have been discouraged and local industry would step to fill the void. Many industries were killed off thanks to Noonie idiot economic policy of artificially keeping the rupee high. We were importing stupid things like shampoo and chocolates .... some thing our local industry could have easily supplied as an example.

 

[ejaz007]

Wrong

China manipulates it currency..

what Pakistan has done has allowed the market to set the true value of the rupee. Which should have done from day 1.

With rupee lower, imports have been discouraged and local industry would step to fill the void. Many industries were killed off thanks to Noonie idiot economic policy of artificially keeping the rupee high. We were importing stupid things like shampoo and chocolates .... some thing our local industry could have easily supplied as an example.

Can you explain your post.

How have the imports been discouraged because rupee is lower.

Which industries were killed off by noonie idiots. All I know is textile related industries and auto industry are in bad shape. Large scale manufacturing is declining. This all is happening when noonie league are not in power.

Shampoos and chocolates were manufactured even in noonie tennure. Those who can afford still buy imported stuff.

Please note that luxury items import though unnecessary is not the big chunk of our imports.

Also government does earn customs duty, additional custom duty, provincial government cess, sales tax (where applicable), income tax (where applicable). With lower imports government does stand to loose revenue.

 

[wali87]

The economy, unlike the Pakistani mind, does not run on conspiracy theories.

The rupee-dollar exchange is not exclusively reliant on government dictation but also other market parameters.

Unfortunately in Pakistan, the economy along with several institutions as well as its people run on hearsay and conspiracy. In an ideal economy there is almost neglible government dictation, not here tho. The Pakistani currency is being artificilly manipulated for atleast the last 40 years and even today. Market forces do determine but in a free flowing dollar economy.

 

[PradoTLC]

Can you explain your post.

How have the imports been discouraged because rupee is lower.

Which industries were killed off by noonie idiots. All I know is textile related industries and auto industry are in bad shape. Large scale manufacturing is declining. This all is happening when noonie league are not in power.

Shampoos and chocolates were manufactured even in noonie tennure. Those who can afford still buy imported stuff.

Please note that luxury items import though unnecessary is not the big chunk of our imports.

Also government does earn customs duty, additional custom duty, provincial government cess, sales tax (where applicable), income tax (where applicable). With lower imports government does stand to loose revenue.

Pakistan doesnt make what???...chocolates???... you heard of Ismail Industries?? no?

noonie economy was driven on a consumption based growth based which favored traders mostly importers..... there was NO REAL GROWTH... understand the difference.

Ask your self how many jobs were created in the engineering, service , etc sectors... a 5%+ growth is a high growth rate and no development work was done. The metro train projects was an example of a sham.... no work was actually done to improve the productive capacity of the nation.


the dumbest story sighted policy i have ever studied. Pioneering by Noonies....

the goods you mentioned are still mostly not produced in Pakistan after devaluation and growth has declined as well as less job are in market which show there is no start of production of such items,japan also has current account surplus but its currency is of low value as compared to u.s and europe so can you also accuse them of currency manipulation,i think it is better to clear concepts before making conclusions and calling whole world as wrong,there is nothing bad in accepting own mistake as human can do error due to ignorance

to me you are the one with unclear concepts.....

you do understand in a void local production steps up?... it happened in Iran, because of sanctions they made an incredible amount goods domestically... same thing we are doing here, curtail imports to boost local production, now of course there is a time lag between setting new production lines, plants, staff hire etc the effect is a long run correction. this will happen because the market needs to be supplied by one way or another.



PS i work in a PE firm so i know what i am saying.....we have access data, CIOs and have analysis a lay man like you wont be able get to. What you have is just news paper knowledge that too snips of it...

 

[RealNapster]

We wish Pakistani brothers the best in increasing their exports. But like others said 'mehnat' is needed and govt. needs to be pro-active in easing tariffs on imported industrial inputs.

I can bad mouth Bangladesh govt. in a lot of ways, but they have been quite proactive in these areas to increase exports...

Well things started improving for us after some 5 years of continuous downfall. Hope the trend continues.

 

[Yaseen1]

google yourself about surpluses of countries and their currency rates you will find answer ,I think working in firm not make someone expert and change economic laws,share some data of your firm to provide basis for your argument here,calling other people layman without any evidence represents your ignorance ,i not make showoff of my knowledge and want to remain low profile and down to earth

Pakistan doesnt make what???...chocolates???... you heard of Ismail Industries?? no?

noonie economy was driven on a consumption based growth based which favored traders mostly importers..... there was NO REAL GROWTH... understand the difference.

Ask your self how many jobs were created in the engineering, service , etc sectors... a 5%+ growth is a high growth rate and no development work was done. The metro train projects was an example of a sham.... no work was actually done to improve the productive capacity of the nation.


the dumbest story sighted policy i have ever studied. Pioneering by Noonies....




to me you are the one with unclear concepts.....

you do understand in a void local production steps up?... it happened in Iran, because of sanctions they made an incredible amount goods domestically... same thing we are doing here, curtail imports to boost local production, now of course there is a time lag between setting new production lines, plants, staff hire etc the effect is a long run correction. this will happen because the market needs to be supplied by one way or another.



PS i work in a PE firm so i know what i am saying.....we have access data, CIOs and have analysis a lay man like you wont be able get to. What you have is just news paper knowledge that too snips of it...