Pakistani Rupee Hits 185 Against 1 USD.

[Communism]

Most currencies are losing ground to the USD now that the Fed has signaled that they are serious about raising rates quickly to combat inflation.

U.S. 2 year treasury bonds now have a ~2.5% yield.

That's an enormous yield for the world reserve currency.

 

[American Pakistani]

That's not going to happen. SBP reserves are dangerously low after the payment of nearly 3 Billion USD to China last week at around USD 12 Billion. Out if the 12, 1.5 Billion are parked with SBP by Saudi Arabia and UAE each, add to that the Oil we are procuring on deferred payments it is an abysmal financial situation. Imran Khan further dug a grave for the incoming Government by not increasing the petrol prices according to situation which has put additional load on the already massive 2.5 Trillion rupee circular debt.

On top of it all, Imran's lies may have an impact on our relations with our biggest donors and debt holders. The incoming Government will have to go to IMF ASAP for a big bailout failing which we may default in 6-8 months and become another Sri Lanka!! PTI has been the worst experiment and the establishment is staying neutral because it has realized what damage they caused the country with the experiment. Holding rupee under 200 will be a miracle. I doubt anybody will be able to do that now.

Nobody can do anything except the awaam. If the massive 250 million people start producing and exporting instead of importing them 1 rupee will be equal to 1$ but since our nation is dependent on imports and govt subsidies nothing will ever change.

Pakistan have one of the lowest gasoline price in the world and lowest in South Asia.

 

[Mav3rick]

Nobody can do anything except the awaam. If the massive 250 million people start producing and exporting instead of importing them 1 rupee will be equal to 1$ but since our nation is dependent on imports and govt subsidies nothing will ever change.

Pakistan have one of the lowest gasoline price in the world and lowest in South Asia.

Our entrepreneurs are now growing and will Inshallah get there. It is the past generations which have done nothing but construction of plazas, building etc., to make money. Nobody bothered to make a car, a motorcycle, an engine, a transmission system, a monitor/tv screen/paanel, a computer case etc. We are importing almost everything, including eatables now too. It is shameful we now import pulses!!

We need a rude awakening and rapid course correction. The goal should be to eventually import only raw material needed to sustain our industry and exports. Everything should be made locally.

 

[SaadH]

Overseas Pakistanis will pull their remittances and I hope it hits 250 for SS and Bajwa to enjoy the fallout.

 

[PakFactor]

Overseas Pakistanis will pull their remittances and I hope it hits 250 for SS and Bajwa to enjoy the fallout.

The outflow has already started --

 

[blueazure]

It is shameful we now import pulses!!

we import wheat as well

 

[Inception-06]

we import wheat as well

But why ?

Our entrepreneurs are now growing and will Inshallah get there. It is the past generations which have done nothing but construction of plazas, building etc., to make money. Nobody bothered to make a car, a motorcycle, an engine, a transmission system, a monitor/tv screen/paanel, a computer case etc. We are importing almost everything, including eatables now too. It is shameful we now import pulses!!

We need a rude awakening and rapid course correction. The goal should be to eventually import only raw material needed to sustain our industry and exports. Everything should be made locally.

How PTI could have done it better concretely?

 

[ziaulislam]

As the title suggests 1 USD is now equivalent to 185 PKR do you think we will hit 200 PKR before Eid or After Eid?

It will

Roshan digital with drawal and selling off proceeds will lead it to crash

 

[SaadH]

But why ?

That's DARnomics, import based growth

Keep borrowing from IMF/WB and global lenders and keep importing...

And when it comes time to payback, leave the next gov't to sort it out...

The economic hitmen Dar destroyed all of Pakistan's homegrown sectors in favor importing goods from outside...

 

[ziaulislam]

That's not going to happen. SBP reserves are dangerously low after the payment of nearly 3 Billion USD to China last week at around USD 12 Billion. Out if the 12, 1.5 Billion are parked with SBP by Saudi Arabia and UAE each, add to that the Oil we are procuring on deferred payments it is an abysmal financial situation. Imran Khan further dug a grave for the incoming Government by not increasing the petrol prices according to situation which has put additional load on the already massive 2.5 Trillion rupee circular debt.

On top of it all, Imran's lies may have an impact on our relations with our biggest donors and debt holders. The incoming Government will have to go to IMF ASAP for a big bailout failing which we may default in 6-8 months and become another Sri Lanka!! PTI has been the worst experiment and the establishment is staying neutral because it has realized what damage they caused the country with the experiment. Holding rupee under 200 will be a miracle. I doubt anybody will be able to do that now.

12 billion is several times bigger then what we had in 2018
We didnt even had oil crisis back then

Anyway lets stick to our game plan
Which is
Dont look at fundamentals strictly look at rupee value
Dont blame IK for inflation coming next few years since you refuse to accept that inflation last 3 yrs is due to PMLN

 

[PakFactor]

Our entrepreneurs are now growing and will Inshallah get there. It is the past generations which have done nothing but construction of plazas, building etc., to make money. Nobody bothered to make a car, a motorcycle, an engine, a transmission system, a monitor/tv screen/paanel, a computer case etc. We are importing almost everything, including eatables now too. It is shameful we now import pulses!!

We need a rude awakening and rapid course correction. The goal should be to eventually import only raw material needed to sustain our industry and exports. Everything should be made locally.

Read about the BECO history in Pakistan it was a conglomerate of various sectors which Bhutto destroyed. It left a deep scar on the business community (including my family), because there was no stability to be found. The foreign business Pakistanis were looking for that stability and vast majority were waiting on to see if he'd be elected a second time. But what these recent events showed our system is flawed and not sustainable for growth hence you don't see those activities your mentioning on a larger scale, as again the Pakistani people did another self inflicted wound.

 

[ziaulislam]

That's DARnomics, import based growth

Keep borrowing from IMF/WB and global lenders and keep importing...

And when it comes time to payback, leave the next gov't to sort it out...

The economic hitmen Dar destroyed all of Pakistan's homegrown sectors in favor importing goods from outside...

I'll be back

That's not going to happen. SBP reserves are dangerously low after the payment of nearly 3 Billion USD to China last week at around USD 12 Billion. Out if the 12, 1.5 Billion are parked with SBP by Saudi Arabia and UAE each, add to that the Oil we are procuring on deferred payments it is an abysmal financial situation. Imran Khan further dug a grave for the incoming Government by not increasing the petrol prices according to situation which has put additional load on the already massive 2.5 Trillion rupee circular debt.

On top of it all, Imran's lies may have an impact on our relations with our biggest donors and debt holders. The incoming Government will have to go to IMF ASAP for a big bailout failing which we may default in 6-8 months and become another Sri Lanka!! PTI has been the worst experiment and the establishment is staying neutral because it has realized what damage they caused the country with the experiment. Holding rupee under 200 will be a miracle. I doubt anybody will be able to do that now.

You cant blame PTI for default in 6months the same way PTI cant blame PMLN for almost default in 2018

You cant use a youthia logic and patwari logic where it fits you

 

[ziaulislam]

What i will ask the people is do find someone else to blame when in 6-12 months the rupee crashes..definitively dont blame IK as he will be likely in jail or streets

Rupee has to crash since huge amount of outflows given poltical uncertainty ..its simple maths..retrospectively building reserves on roshan digital was bad

Though exports/remittences have gone up by 50% the imports in 2018 were more then 100% the remittences/exports that too in low oil/energy market..with current energy market we are back to 2018

Unless nawaz sharif has a special wand that can increase exports to another 100% in instance (rather then decreasing it like he did from 2013-2018) rupee will crash

The only thing that can save pakistan now is that we hope oil fall back to pre 2018 levels AND WE HOPE that PMLN doesnt kill export again as it did in 2013

If these two things happen everything should be resonable

 

[Maula Jatt]

What i will ask the people is do find someone else to blame when in 6-12 months the rupee crashes..definitively dont blame IK as he will be likely in jail or streets

Rupee has to crash since huge amount of outflows given poltical uncertainty ..its simple maths..retrospectively building reserves on roshan digital was bad

Though exports/remittences have gone up by 50% the imports in 2018 were more then 100% the remittences/exports that too in low oil/energy market..with current energy market we are back to 2018

Unless nawaz sharif has a special wand that can increase exports to another 100% in instance (rather then decreasing it like he did from 2013-2018) rupee will crash

The only thing that can save pakistan now is that we hope oil fall back to pre 2018 levels AND WE HOPE that PMLN doesnt kill export again as it did in 2013

If these two things happen everything should be resonable

I heard Miftah Ismail is not as retarted as Dar - I sure hope to god it is true
you followed his polices or what he thinks we should do? maybe that can give us an inside into his mind

 

[ziaulislam]

I heard Miftah Ismail is not as retarted as Dar - I sure hope to god it is true
you followed his polices or what he thinks we should do? maybe that can give us an inside into his mind

He isnt retarted as such thats the hope but there is somethig called political pressure

PMLN base thrives on import base business with massive over spending..black holls like dams and importanr projects will have to be axed..i expect bhasha dam to be axed..munda dam probably too though

Miftah can stop that even if he wanted to..unless establishment ask for a redline

So crash is inevitable in 2028 since PMLN will have to spend (and plunder heavily)to fight PPPP

I mean rupee has crashed everytime since 1990 ..with same story..heavy spending, artificial low interests and low exports..
The chance it wont has gone away

Remeber why i have been saying for last few years investors arent coming since they see a crash coming..well investors are cunnig people they already knew govt will fall

One thing might save us if PTI is killed off and PPPP agrees to stay only in sindh..with such a move PMLN may be more disciplined

##

Anyway since i cant troll anymore
I will be taking a break from this forum for a few years. But for all pakistanis..stash your money in $$$ or real estate..since chatrool is coming and you wont have PTI to blame

The chatrool will be simialr to 1998 chatrool when overnight rupee went from 30 to 65 which followed by 3 yrs of high inflation zero growth (1998-2001)