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Rupee slumps to all-time low of 134 against US dollar

Yes if imported goods/loans are a big/sensitive enough part of their daily bread basket. With Pakistan (like all developing countries, esp GDDS) there is often not enough high frequency data to really gauge this. It becomes somewhat a catch 22 situation.

Just the impacts of rising energy prices, which is mostly imported, both direct and indirect, cause a cascade that affects most, the worst affected being those already on the brink. This is made worse by any lender-imposed conditions about removing subsidies so that the increase is much more than what the mere international energy prices would indicate, again much worse for the poorer sections of society.
 
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Just the impacts of rising energy prices, which is mostly imported, both direct and indirect, cause a cascade that affects most, the worst affected being those already on the brink. This is made worse by any lender-imposed conditions about removing subsidies so that the increase is much more than what the mere international energy prices would indicate, again much worse for the poorer sections of society.

Yup energy is the big elephant in the room always.
 
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Some people here remind me of this scene .....
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Biraadar @BHarwana . . . throw some roteen tomatoes from your farm to shut this guy up !!
 
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PTI govt. is in power now, finish the corruption why only rhetoric??. Which reforms PTI has done, other than more taxes, what new law reforms they have done for tax collection, against Tax theft, against corruption, speedy judicial system, for prosecution, just a rhetoric, only rhetoric, yeh ayen baeyn shaen band karo.. your own leader IK talked against devaluation of rupee number of time in the past, cuz one major effect it makes it increase IMF debt manyfolds, thats what IMF wants, that is why their first demand from countries always is devaluation of their currency. Listen idiot watch the video (Dar's interview) may be you understand the issue at hand here.




Its been 2 MONTHS YOU CRAZY GOOF

So your point of view is that after 2 months, you wont give PTI more time to try and change society and you immediately want to go back to PPP/PMLN????

You cant act this stupid and deluded, its ridiculous

Your loyalty should be to Pakistan, not a party or politician

You should aspire to support anyone who tries to better Pakistan, not to support the same old corrupt order

Go away, sit down and sort yourself and your priorities out...:pakistan:
 
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behrooni Saazish !!!

Long, but worthy of a read due to the insight it offers into the prevailing mindset:

Now coming to the mess in account of Stock Exchange crashing to the bottom and then rise of Dollar against Rupee. Even though, it is a subject of economy that I am not good at calculations as such but still, how the so-called investigative journalists and dedicated teams concealed the root cause of such down-slide; is notable.

A commoner even understands that Stock Exchange cannot crash in a manner as such at overnight and value of money results based upon the economic figures in past. As usual, media teams played their best into the hands of masters and totally ignored the fact as how this could happen. As per my understanding for which, I can be wrong too, as soon as Government Institutes started accountability process, started to track Tax Evaders, started to investigate wealth beyond means or resources & started to apprehend economic hitmen at any level then suddenly Stock Exchange mafia pulled out. Dollar vanished from market which resulted in less value of Rupee. As stated above, the goal is not to discuss economic reforms or counters but here we can see that how specific mafia works in coordination with different arms of propaganda on behest of hostile.

In broader prospect, there are teams that works in close coordination like from media to economic players, then from political thugs to low level manipulators living among public, then from propagandist which fuels different kind of divides to the people that sparks feud & anger among people to target State in the end. The State, yes this is the only target to hit. Whether ruling party is PTI or not; I must repeat, the state remains the main target whereby hostile elements will shoot over the shoulder of politics.

Just a day ago, Government decided to investigate mismanagement at Ministry of Information whereby ex-Minister namely Maryam Aurangzeb allegedly spent millions to empower PMLN political social media team over the expense of exchequer money. Now, see all the drama, sabotage & propaganda through media in previous years especially targeting State Institutes that too upon the expense of Public Money. As said before, Media is the tool to further any agenda in a manner as desired and this is the same tool which works as a loud speaker.

So, most of media houses especially Journalists did not even consider a moment to investigate about real problem of unfortunate inflation nor did anyone reveals as why are we facing current situation. These highly paid manipulators keep concealing or deliberately avoids to share details as such which will help populace to know the real culprits behind all the misery because; most of them journalists are meant to earn and keep pleasing certain employers. How media tycoons been threatening Institutes in different wording and styles; is all on record.

This is all the part of hybrid warfare waged upon state to demean & demoralize any progress which will benefit the nation at large. These media houses will call it a news till any leak helps to harm National Security and will believe in Journalism as such but on other hand, whenever called upon to differentiate between Journalism & espionage then will start to cry high and play victim card. The same media houses will play with the help of corrupt elements within the Government ranks and as currently Institutes are gearing up to deal the cancer as such; same media houses are trying to demean any effort as such to minimize the possibility of justice being served to the culprits. If anyone having a thought that why would Media will support corrupt elements then must remember that corrupt elements cannot live without propaganda or influential media houses and vice versa. Both elements works closely to pursue specific agenda as & when required.

Few among the journalists will support ethnic groups and project them as a sort of mere political party but these elements will be eyeing a later damage when it extends it roots among public. For example, the Achakzai treason & PTM's hateful business. Most of journalist's interests lies abroad and their love of luxuries is not hidden so they deliberately play deaf & dumb contrary to the facts & truth to be told. The hybrid warfare manipulation works in a manner by creating a deceptive cover of highly harmful matters through manners such as political differences or social reforms. Such kind of covers are utilized initially so public without much information in this regard start to believe whatever being propagated through different means of communications and as the hostile agenda gains momentum, they starts to launch next level of anti State activities with aggressive approach & hateful campaigns.

Media & Journalists are part of the same hybrid warfare that works along different groups including corrupt officials, political thugs, ethnic groups, extremists including either religious or liberals, NGOs & other elements. These pawns are utilized through different sources in different times but above all, coverage is being provided by Media mediums to corrupt society at first.

Pakistan is in dire need of a mechanism to keep check & balance as well as a close watch over activities of people attached to the media at large. As the game is designed on complex web but it is not hard to track down connected infections running malicious campaigns against State. Political differences aside; State will have to act to get rid of hostile elements. Currently, most of opposition political elements have opted a way appearing to be political but deep down it is highest threat to the state which is designed to sabotage society, create unrest & uncertainty and make people believe of less progress. Most of the fake news are shared and these media houses walks freely in the name of Personal Opinion.

We have recent example of Cyril of Dawn whose article totally misrepresented the facts and was an attempt to malign State Institutes with the help of Nawaz Sharif and Company. Similar sabotage was done in past by Hussain Haqqani being supported by Asif Zardari against State. Then-after, despite having thousands of pro-claimed investigative journalists & champions of journalism, none date to tell the truth as what really happened down there. In fact, truth will help state at large but here, personal gains & cheques were more important over National Interests. Therefore, one should not expect much of truth or beneficial report or investigative journalism from current lot of Journos nor to help them spread their designed propaganda.
 
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Yes if imported goods/loans are a big/sensitive enough part of their daily bread basket. With Pakistan (like all developing countries, esp GDDS) there is often not enough high frequency data to really gauge this. It becomes somewhat a catch 22 situation.

And so it begins with the bread basket, more to come:

https://www.dawn.com/news/1438302/devaluation-the-day-after-food-prices-start-creeping-up

Devaluation: The day after — food prices start creeping up
Aamir Shafaat Khan Updated October 11, 2018

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Almost half a billion dollars worth of pulses are imported every year. With the devaluation this week, prices in wholesale markets have already begun to rise.

KARACHI: The day after the rupee saw its largest single day fall in over a decade, food prices in wholesale and retail markets already began their inevitable journey up.

Some food items are imported, like cooking oil, and others such as tea whitener use imported packaging and inputs. Pakistan imports around $6.2 billion worth of food items, with palm oil accounting for $2bn and tea and pulses of over $1bn, according to the Pakistan Bureau of Statistics data.

Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Tariq Ullah Sufi said few manufacturers have initially surged the price of ghee and cooking oil by Rs3-4 per kg/litre on Wednesday while the actual impact hovers around Rs7-8 per kg/litre.

“This is the first shock of rupee-dollar parity on prices and nobody knows about the fate of our currency. Consumers will have to brave another burden of more price shocks in the future it seems, given rising gas and power tariff to come,” he said.

The country consumes four million tonnes of ghee and cooking oil per year in which the former accounts for 60 per cent while the latter holds 40pc share, he said.

PVMA Executive Member Atif Rasheed said ghee and cooking prices may remain under pressure as 95pc of their raw materials - from palm oil to packaging material, tin, etc - are imported. He said dollars for import purposes cost between Rs135-Rs136.50. The day before, this same rate was Rs124. This sharp increase will necessarily work its way into the consumer price eventually.

Karachi Wholesalers Grocers Association Chairman Anis Majeed said traders have passed on a 5pc jump in wholesale prices of various imported edible items despite 8pc rupee devaluation against the greenback. “In case rupee loses further ground then the traders will further jack up prices,” he warned.

Pakistan Tea Association Chairman Shoaib Paracha initially calculated an increase of Rs30-50 per kg in view of the rupee devaluation.

According to Tahir Abbas, equities researcher at Arif Habib Ltd, every 1 per cent depreciation of the rupee leads to a 0.1pc increase in the Consumer Price Index, the main index used by the government agencies to measure inflation.

Published in Dawn, October 11th, 2018
 
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