Pakistani rupee firms to 136 per dollar

[rak_987]

Rupee Fell because of Oil. Period.
Please Educate yourself over Credit ratings and Growth. It will help.

Oil is secondary.
Rupee fell repeatedly because of your debt going over $ 550 bn and to service that debt, payment was from reserves. YOur reserves fell below 400 to 393 and still reducing.

 

[bafxet]

But Ask Dar does he want to come back if not then why this question must be ask yourself.

If they let him come back........

 

[Chanakyaa]

Oil is secondary.
Rupee fell repeatedly because of your debt going over $ 550 bn and to service that debt, payment was from reserves. YOur reserves fell below 400 to 393 and still reducing.

Please dont talk BS if you dont know what you are talking about. Everything doesnt need to be India vs Pak.
Please Kid, Educate yourself.

 

[GHALIB]

good recovery.

 

[rak_987]

@XiNiX

Rofl you are making it india v Pakistan who the hell are you to speak about Pakistan? What is your interest here? Please educate and put the figures of your debt increase and reduction of FDI. It'll become clearer. Modi ne jo demonetization ka circus kiya, GST execution issue all weakening your positionfrom 2012.

 

[Verve]

Pegging the rupee to dollar for last 5 years (PMLN tenure) is why we are here and it has killed our farmers and exporters.

Rupee will stabilise in the longer term and the buffer has been provided by friendly nations.

1. Deferred Payment on Oil ($3bn per year) - current fluctuation in rupee value will have no immediate impact, as the payment is not due for one year. This allows the government to keep the prices stable (and reduce when possible as seen recently). Oil prices have a direct impact on price of goods.

2. Gas prices lowered for industries. Local gas so there should be little impact of rupee devaluation.

3. Electricity prices lowered for industries. Again, oil generated electricity prices can be buffered for a year due to deferred payment.

4. Imports reducing.

Oil, Gas and Electricity prices will remain pretty much fixed for the farmers and industry. This will make them competitive in international market thus leading to more exports and more $ in the kitty. This booster injection and increase in exports will pay deferred payments. Hopefully FBR reform will bear fruit soon and the return of looted wealth will add the equation.

There is risk in all this but it is far less risky than pegging the rupee without any major reforms and boost for the farmers and export industries. Rupee devaluation was inevitable due to previous policies so let it reset. Main thing is to keep cost of local production low to favour increase in export volume.

 

[Lucky Breeze]

ڈالر کی اُڑان وقتی ھے جیسے ھی گرم آنڈے مارکیٹ میں آئیں گے ڈالر نیچے آجائے گا

 

[AZ1]

If they let him come back........

Yeah court has been asking him to come back from months he didn't come back and he wouldn't. When you do things wrong you hide simple.

 

[Hyperion]

Any kind of uncertainty is bad for economy. Things are bad and will get worse from here as no lines have been drawn by competent authorities.

@Hyperion now what please help me here. Is this good or bad for our economy.

 

[Nilgiri]

Actually, If they were expecting this, means they knew that it was inevitable. Hopefully they have a Short term and a Long term Plan for this situation.

Like in the Indian case, they made currency changes and .. other 'short' term moves. Oild is going down that should be another help, But Pakistan needs some serious Moves.

@Nilgiri Might Add something.

Pakistan needs to reform deeply. Improve governance and reduce govt intervention into economy (by reducing excise duties on production and supply especially and the massive bureaucracy saddled to it).

This check valve exchange rate strategy is quite bad policy...it should be much more free float so the large pressure is not accumulated (and all the shocks that entails as @CHACHA"G" and @Major Sam mention)...because businesses work and plan with cash flow rather than cash shocks.

Past that, everything is basically some form of long term better+focused institutional development (where govt actually works)....its a basic narrative change from the earlier "govt must be involved in everything for greater good".

@VCheng @Chak Bamu @Indus Pakistan @Oscar

 

[BHarwana]

Any kind of uncertainty is bad for economy. Things are bad and will get worse from here as no lines have been drawn by competent authorities.

They have already drawn a line promote exports and demote imports but people are reluctant in making transition from what they are doing to what they should do. Time for change

 

[Hyperion]

O meri jan, as I'm a dumbfuck unlike rest of educated fools here, please educate me on the supposed exports and how they are going to revive those industries. Are you talking about mangoes and cement or some high tech gadgets that we maybe producing that rest of the world is dying to get their hands on. Make a small list, do it for your masters at least, don't do it for an unparh like me.

Furthermore which imports are they trying to 'demote'???? what percentage of of forex goes for their payment, make a list. Do it for Pakistan. Dil Dil Pakistan Jan Jan Imran Khan kay tattay.

Eik aur baat, industries chalanay kay liye bijli kya tumharay paadon say challay gee ya information minister kee gand mein koi nuclear plant installed hai and it produces 100GWh electricity, jiss ka iss nacheez ko ilm nahi?

MAAA KEE KUSS TUMHARI, BAKWAAS KARR KARR KAY FORUM KEE BANWIDTH KEE MAA YEH DEE HAI TUMM NAY.

They have already drawn a line promote exports and demote imports but people are reluctant in making transition from what they are doing to what they should do. Time for change

 

[The Diplomat]

damn, so when I sent money home last evening it was 36.45 / AED.
1 Lack at ~2743 AED...

And as per them the highest it had gone was a few days earlier which was 36.85 / AED

I really hope it slowly settles down to norms and there ain't much inflation haunting the folk there...

Damn, only if this had happened one day before. I guess it's good for overseas Pakistanis... Everything has a silver lining.

Pegging the rupee to dollar for last 5 years (PMLN tenure) is why we are here and it has killed our farmers and exporters.

Rupee will stabilise in the longer term and the buffer has been provided by friendly nations.

1. Deferred Payment on Oil ($3bn per year) - current fluctuation in rupee value will have no immediate impact, as the payment is not due for one year. This allows the government to keep the prices stable (and reduce when possible as seen recently). Oil prices have a direct impact on price of goods.

2. Gas prices lowered for industries. Local gas so there should be little impact of rupee devaluation.

3. Electricity prices lowered for industries. Again, oil generated electricity prices can be buffered for a year due to deferred payment.

4. Imports reducing.

Oil, Gas and Electricity prices will remain pretty much fixed for the farmers and industry. This will make them competitive in international market thus leading to more exports and more $ in the kitty. This booster injection and increase in exports will pay deferred payments. Hopefully FBR reform will bear fruit soon and the return of looted wealth will add the equation.

There is risk in all this but it is far less risky than pegging the rupee without any major reforms and boost for the farmers and export industries. Rupee devaluation was inevitable due to previous policies so let it reset. Main thing is to keep cost of local production low to favour increase in export volume.

We had the same problem in the UK when we pegged the Pound. It's fine to peg in the short run however to keep it viable in the long run a country must have a lot in foreign reserve to stable the market. Despite the US being Pakistan's largest trading partner we see so long term benefit. Lets not forget that stronger Pound imports cheaper (adding to problems) and exporters dearer.

In one day the value of Rupee fell by 6Rs. Pakistan needs disinflation (note: I said disINFLATIOn and not deflation) to increase investor confidence. The best way to earn money as a Government is to issue bonds however adopt the British version of it; National Savings & Investment.

 

[BHarwana]

O meri jan, as I'm a dumbfuck unlike rest of educated fools here, please educate me on the supposed exports and how they are going to revive those industries. Are you talking about mangoes and cement or some high tech gadgets that we maybe producing that rest of the world is dying to get their hands on. Make a small list, do it for your masters at least, don't do it for an unparh like me.

Furthermore which imports are they trying to 'demote'???? what percentage of of forex goes for their payment, make a list. Do it for Pakistan. Dil Dil Pakistan Jan Jan Imran Khan kay tattay.

Eik aur baat, industries chalanay kay liye bijli kya tumharay paadon say challay gee ya information minister kee gand mein koi nuclear plant installed hai and it produces 100GWh electricity, jiss ka iss nacheez ko ilm nahi?

MAAA KEE KUSS TUMHARI, BAKWAAS KARR KARR KAY FORUM KEE BANWIDTH KEE MAA YEH DEE HAI TUMM NAY.

Chalo I will not utilize forum band width in my bakwas aap batoo kiya karain. Dar bhai ki tarahan dollar sasta kar kay aap ko imports kay liya day dain?

Na muun na matha jinn paharoon latha.

Import karo aur dollar export karo pura mulk bhuk say maray aap kay char din achay taap jain.

Aap haal bata do bhai.

 

[Nilgiri]

Any kind of uncertainty is bad for economy. Things are bad and will get worse from here as no lines have been drawn by competent authorities.

Nice to see you around buddy. Its been a while.