Rupee fall benefits expats’ families: Baqir

[AZ1]

We don't pay them in USD, we pay them in PKR, USD in contract is only a bench mark to determine tariff.

okay and then for what reason having dollars as bench mark and few months back 17 ipps were forcing to fix the dollar rate at 168?

17 IPPs haven’t signed tariff discount deals, Nepra told

Power regulator’s hearing on rate revision concludes.

www.dawn.com

What they do with pkr, go in market buy dollars to pay import bills?

 

[muhammadhafeezmalik]

okay and then for what reason having dollars as bench mark and few months back 17 ipps were forcing to fix the dollar rate at 168?

The IPP working on debt taken from foreign bank in the shape of USD and they to pay interest and principle amount in USD, if we would depreciate PKR to 500/USD it would be death to them. How can they provide electricity in Rs.60/unit in that case too??

https://www.nppmcl.com/wp-content/uploads/2017/10/Balloki-Tariff-Determination-.pdf

 

[AZ1]

The IPP working on debt taken from foreign bank in the shape of USD and they to pay interest and principle amount in USD, if we would depreciate PKR to 500/USD it would be death to them. How can they provide electricity in Rs.60/unit in that case too??

View attachment 788458

https://www.nppmcl.com/wp-content/uploads/2017/10/Balloki-Tariff-Determination-.pdf

even lets say we pay them in rupees, same rupees will be used to get dollars to pay import bills/interest? So back to shortage of dollars in the end

 

[Norwegian]

Now as USD falls against PKR, so expats families are at loss??

yes of course

if we would depreciate PKR to 500/USD it would be death to them.

News flash! Govt can't control dollar price. Imports and Exports (Trade balance) do

even lets say we pay them in rupees, same rupees will be used to get dollars to pay import bills/interest? So back to shortage of dollars in the end

Don't speak logic to him. It won't work. Contract says payment is done in PKR so he won't understand that profits are repatriated in dollars and not PKR.

 

[muhammadhafeezmalik]

even lets say we pay them in rupees, same rupees will be used to get dollars to pay import bills/interest? So back to shortage of dollars in the end

So?? How will you attract foreign investment?? The other foreign companies working here also repatriate their profit in USD so we shut down them or ask them to go out of our country??

yes of course

News flash! Govt can't control dollar price. Imports and Exports (Trade balance) do

Don't speak logic to him. It won't work. Contract says payment is done in PKR so he won't understand that profits are repatriated in dollars and not PKR.

Logic, what logic??

What they do with pkr, go in market buy dollars to pay import bills?

They don't pay import bills, government provide them the fuel at agreed price, they send their profits to their head-offices and interest payment to foreign banks.

okay and then for what reason having dollars as bench mark and few months back 17 ipps were forcing to fix the dollar rate at 168?

17 IPPs haven’t signed tariff discount deals, Nepra told

Power regulator’s hearing on rate revision concludes.

www.dawn.com

The government wanted to maintain USD bench mark at PKR148/USD whereas at the time of hearing the USD appropriated to Rs.160/USD, there was a clause that if USD appreciated or depreciated more than 5% the bench-mark would be changed accordingly but obviously this does not happen automatically they have to go through a lengthy process and during the process the PKR may depreciated again that is why they wanted to maintain the benchmark 5% higher than the market price, it was their demand only and not the finalised order.

 

[AZ1]

They don't pay import bills, government provide them the fuel at agreed price, they send their profits to their head-offices and interest payment to foreign banks.

how do they make payment to foriegn bank? they need dollar, we give them rupees they convert it to dollars. we dont grow dollars in back yard. In the end shortage of dollars. We have to make payment no matter we use it or not in pkr and then pkr converted to dollars for foriegn bank. wastage of dollars.

 

[muhammadhafeezmalik]

how do they make payment to foriegn bank? they need dollar, we give them rupees they convert it to dollars. we dont grow dollars in back yard. In the end shortage of dollars. We have to make payment no matter we use it or not in pkr and then pkr converted to dollars for foriegn bank. wastage of dollars.

View attachment 788486

What is the solution?? Should we not built the power plants and let people suffer by 18-20 hours load-shedding and continue to generating electricity at Rs.30/unit through small generators at homes and factories on expensive fuels e.g. petrol or HSD??
Pakistani banks didn't have enough capital to give loans for setting up power plants and we needed foreign investment and this is the only mode of working with foreign companies that they invest here in USD and we would have to pay in installments in 20-30 years.
Capacity payments increases because one we are buying more electricity, two we are depreciating the PKR at speed of light.

 

[AZ1]

What is the solution?? Should we not built the power plants and let people suffer by 18-20 hours load-shedding and continue to generating electricity at Rs.30/unit through small generators at homes and factories on expensive fuels e.g. petrol or HSD??
Pakistani banks didn't have enough capital to give loans for setting up power plants and we needed foreign investment and this is the only mode of working with foreign companies that they invest here in USD and we would have to pay in installments in 20-30 years.
Capacity payments increases because one we are buying more electricity, two we are depreciating the PKR at speed of light.

Solution is buy flats in london and enjoy the life.

 

[muhammadhafeezmalik]

Solution is buy flats in london and enjoy the life.

Means you have no solution.

 

[AZ1]

Means you have no solution.

Now its too late to look forward for solution.We should go for dams many years ago. you should ask this question to your leader

 

[Azadkashmir]

THeir is a need for return stolen wealth extraction proccesss by locking up the oligarchs thieves just like saudi arabia did.
industrilization forget it the criminals will knock on your door for tax which they will make up on the spot you go bankrupt.

 

[muhammadhafeezmalik]

Now its too late to look forward for solution.We should go for dams many years ago. you should ask this question to your leader
View attachment 788509

You want me to post photo-shopped posters of Imran Khan??

 

[Norwegian]

So?? How will you attract foreign investment?? The other foreign companies working here also repatriate their profit in USD so we shut down them or ask them to go out of our country??

You attract foreign investment by achieving financial solvency. No foreign investor invests in a country that manipulate dollar price to artificially control inflation and thus goes bust every 5 years back to IMF aid

Logic, what logic??

You said govt cannot increase dollar price when in fact dollar price is not set by govt or state bank but by the market

they send their profits to their head-offices and interest payment to foreign banks.

How? By converting PKR to USD that leads to shortage of dollar in the market increasing its price. How govt can fix that?

What is the solution??

Solution is to invest in hydro and other renewables. Not kill the nation financially by producing the most expensive electricity in the region

 

[Norwegian]

Capacity payments increases because one we are buying more electricity, two we are depreciating the PKR at speed of light.

No here is where Pmln trolls get it all wrong. We are not depreciating rupee. Market is doing it as your brilliant finance minister Ishaq Dollar used up all the reserves fixing dollar price

 

[El Sidd]

Money exchangers mostly buying in like 170 and selling of 172 and trend continues, people also getting benefit from this who wants to earn these are beneficiaries.

Ayeen i Pakistan says criminals not beneficiaries.

This is modus operandi of making enough collateral to escape the crime.