PTI Gov injected $5.8 billion to keep the Rupee artificially strong

[Norwegian]

I have no love lost for PML-N. However, some of the statistics cited are misleading. The rapid growth of debt you are stating in trillions is in Pakistani rupees. When the Pakistani rupee devaluates, the size of your national debt increases drastically. This is what happened in the PPP era and PML-N as well when it allowed devaluation of PKR. CPEC is also a factor. Then PML-N went bonkers trying to fix the power crisis. Its incompetence was on full display when it kept on installing new capacity even when the economy did not have the capacity to absorb the power in the system that had been added up to a certain point. What it had on mind, kickbacks, CPEC 2.0 which was supposed to be energy-intensive, or plain old incompetence is anyone's guess. PPP did have to go to IMF BTW at the heels of a much severer balance of payment crisis that Musharraf left the country with. Shaukat Tareen (as PP's finance minister) undertook one of the steepest macroeconomic adjustments this country has ever seen. Inflation was over 20% back then. I think you did not read my previous comment. I would recommend you do so. The quantity of goods we are exporting is falling. We are earning more because of the globally high commodity prices that have also inflated the value of our exports that are in fact shrinking in quantity per the data from 2021. No government has had so many crises. The frequency of the emergence of crises under this government is clearly indicative of the fact that powerful interest groups are well aware of its incompetence and know it could be taken for a ride very easily and the public be squeezed with little to no sweat under its governance.


PTI partisans used to do the same in past. That is what people who do not agree with the policies of the government of the day do. I do not see light at the end of the tunnel, that is why I am more vocal now. Particularly vocal since I found that the export growth manjan we had been sold was a myth. The export volume is actually shrinking and we are earning more due to the high value of the exports which would also reduce in time when global demand ebbs and commodity prices subside.

Pakistan needs dollars by hook or crook. It can earn these dollars by increasing volume of exports or value of exports. Either way it will increase its export income. Since 2010 Pakistan's exports have remained stagnant under 30 billion dollars! Imagine that for ten years country's volume / value of exports didn't grow despite 5,6 percent gdp growth in 2018. In fact it fell to mere 20 billion dollars at one point. But you didn't take out incompetence card when this disaster was happening

 

[AZADPAKISTAN2009]

PML committed treason against Pakistan in last 1.5 years in power
But it will not be called treason because the lawyer and news paper community will say


"Nawaz Sharif "Sahib" , was felling ill with white blood cell count down"

Certain group will , wash his feat and put that water into a cup and drink it , exemplifying the slave mentality

 

[Norwegian]

PML committed treason against Pakistan in last 1.5 years in power

Economic terrorism

 

[S.Y.A]

PTI Government has the most confused and chaotic foreign policy that it's made it indistinguishable between friend and foe and every one is taking advantage of Pakistan.

who was the FM in PMLN's time, and what his/her length of service? was any attempt made to improve relations with the west (lobbying etc)? please provide details of that. also, wasnt it during PMLN's tenure that gulf countries were abused in parliament, when the situation could have been handled a bit more sensibly, thus turning them against pakistan?

 

[SIPRA]

Every society and state gets, what it strives for and what it deserves. Pakistan is not exception to this rule. No country is.

 

[S.Y.A]

Pakistan needs dollars by hook or crook. It can earn these dollars by increasing volume of exports or value of exports. Either way it will increase its export income. Since 2010 Pakistan's exports have remained stagnant under 30 billion dollars! Imagine that for ten years country's volume / value of exports didn't grow despite 5,6 percent gdp growth in 2018. In fact it fell to mere 20 billion dollars at one point. But you didn't take out incompetence card when this disaster was happening View attachment 808461

so ppp actually did better than pti in exports sector?

the problem with devaluing the currency, that you do not seem to understand is this: our debt increases every time the currency devalues, we have to export more to earn the same amount of dollars as before, our electricity and energy costs increase, price of raw materials that are used to make exportable products also increases, energy costs affect everything else i.e. transportation costs etc. any perceived benefit of currency devaluation, that it somehow results in increased exports due to lower prices, is lost due to these factors.

That is not to say that i dont realize the situation this government is in, the exports are falling, and imports are rising, add to that the loan, capacity and energy payments thanks to nawaz sharif, and situation is a dire one. shabbar zaidi was right, the country is bankrupt.

 

[Norwegian]

so ppp actually did better than pti in exports sector?

Nope. Pakistan's exports volume today is much higher than PPP era

our debt increases every time the currency devalues

Nope. External debt remains the same regardless of devaluation as it's in foreign currency such as dollars. Govt or central bank cannot print rupees to pay off its external debt. It has to be paid by increasing exports, remittances, foreign direct investment or the easiest path: more external loans

 

[Mav3rick]

Why so much moaning and whinning by PM Imran Khan, his Shaikh Chilli Ministers and the cabal of PTI nutheads everywhere condemning the previous PML-N Government for the way it managed the country's finances and the economy? While at the same time, for the past nearly 4-years, the PTI Government has been doing exactly the same thing.

The following article is from September 2021 confirming the incompetent PTI Government's failed policy of not imitating the successful tenure of the PML-N Government between 2013-2018.

Well, the reason is quite simple, PML managed to keep the currency at 104 to each USD whereas PTI is unable to control it even at 165-170 (which their Finance Minister believes is the correct value of the PKR). This failure sparks their frustration which they vet out on the previous regime.

 

[Norwegian]

we have to export more to earn the same amount of dollars as before, our electricity and energy costs increase, price of raw materials that are used to make exportable products also increases, energy costs affect everything else i.e. transportation costs etc. any perceived benefit of currency devaluation, that it somehow results in increased exports due to lower prices, is lost due to these factors.

That's exactly why no govt devalues its currency on purpose. It always happen after a govt like the former Pmln govt artificially overvalues Rs for years and thus the new govt has no choice but to devalue in order to avoid default

 

[Mav3rick]

If PTI has done it then chawal ee mari he inho ne b

You mean the manipulators should be let free to rot the currency value even further? To which point, 190-200 or 200+ even?

 

[Norwegian]

shabbar zaidi was right, the country is bankrupt.

Yes, it was already left bankrupt by Musharraf in 2008, Zardari in 2013 and Nawaz Sharif in 2018

 

[S.Y.A]

Nope. Pakistan's exports volume today is much higher than PPP era View attachment 808471

bhai, look at the dollars earned. that is what I am pointing out, devaluation causes us to export more volume, expend more effort/energy/resources, but earns way less than what we were making before.

 

[Norwegian]

You mean the manipulators should be let free to rot the currency value even further? To which point, 190-200 or 200+ even?

You don't see the manipulation of currency during your favorite Ishaq Dollar era? Why was rupee artificially overvalued for 4 long years? Is it PTI govt fault?

Well, the reason is quite simple, PML managed to keep the currency at 104 to each USD

And how did they manage that? By increasing exports? Increasing remittances? No. They managed that by artificial means by overvalued exchange rate

Govt spent $7 billion to keep rupee overvalued against the U.S dollar

ISLAMABAD: A member of the Economic Advisory Council (EAC) has said the government spent $7 billion in last few years to keep the rupee overvalued against the US dollar.The member of EAC has sough

profit.pakistantoday.com.pk

Ishaq Dar was warned about holding an artificial exchange rate: Deputy Chairman Senate - Mettis Global Link

Speaking to Karachi Chamber of Commerce and Industry, Deputy Chairman Senate, Salim Mandviwala, stressed that the Ex-Finance minister Mr. Ishaq was warned not to artificially maintain the dollar-rupee exchange rate. Ignoring those warnings, the government continued to pump about 7 to 8 billion...

mettisglobal.news

 

[Cryptic_Mafia]

i voted for IK but he turned out to be bigger disappointment than previous prime ministers!

he is a coward who promised so many things but delivered nothing! if he was a man i thought he would be someone who would stand up to all the mafias he has failed miserably and now like he predecessors he is enjoying throne of Pakistan and will fk off to london when his term is over! there is no hope for Pakisan!

 

[Norwegian]

PTI is unable to control it even at 165-170 (which their Finance Minister believes is the correct value of the PKR).

Unable to control? You think govt can print dollars at will and thus control dollar price against the Rs?
Btw at one point last year dollar was traded at 153 Rs

bhai, look at the dollars earned. that is what I am pointing out, devaluation causes us to export more volume, but earns lesser than what we were making before.

Bhai I understand what you are saying but you don't blame the govt for devaluation. You blame the govt for overvaluation because it always lead to devaluation. PTI govt hasn't done any overvaluation so far so there will be no devaluation in future