Rupee trading in range of 230-232 in open market as spread with inter-bank widens

[VCheng]

Not so long ago, PTI had managed to stabilize the rupee. The trick to a stable rupee is just to balance our CAD. Not rocket science. We have been consuming more than we are producing but if we can keep that difference to be smaller than our remittances, our rupee will be fine.

This govt of course has no credibility and the remittances have stalled after years of stellar growth under PTI. So with PDM, yes, abs no chance of stabilization.

Such periods of respite are only temporary and usually more sleight than expertise, given the lack of any true foundations that support a stable PKR. Even remittances are a band-aid, since they create their own demand for imports and thus the hard currencies flow right back out. I will go as far to say that even if IK has a 2/3rds majority in the next elections, the PKR will remain on a downward path for years and years to come. Any other idiot who comes to power, if not IK, will achieve the same dismal results.

PKR depreciation seems to be a result of inherent weakness of economy as @VCheng suggested.

That is not a suggestion. It is a fact IMO.

 

[Abdul Rehman Majeed]

Great news.

Weak PKR is good for Remittances, Exports and Foreign Investments.

 

[HttpError]

Great news.

Weak PKR is good for Remittances, Exports and Foreign Investments.

Tou bhai tu aisa ker, PKR Ko 400 per ker de against 1 USD takay Remittance walo ko sakoon ajaye.

 

[Ssan]

Such periods of respite are only temporary and usually more sleight than expertise, given the lack of any true foundations that support a stable PKR. Even remittances are a band-aid, since they create their own demand for imports and thus the hard currencies flow right back out. I will go as far to say that even if IK has a 2/3rds majority in the next elections, the PKR will remain on a downward path for years and years to come. Any other idiot who comes to power, if not IK, will achieve the same dismal results.



That is not a suggestion. It is a fact IMO.

What do you mean by true foundation? The nice thing - most generalization you want to make about a currency’s foundation can be indicated by the country’s CAD.

It depends what the remittances are going towards. If to build houses in DHA- that’s one thing. If it’s laundered money from abroad- another. If it’s investment in the stock market/ or certificates or supporting family members or charities, the third. In general, for Pakistan remittances don’t have the negative secondary effects you are mentioning.

I actually am fairly bullish for Pakistan in the future. Miftah has already taken the right steps to increase price of commodities we take for granted but that the rest of the world pays top dollar for. When IK eventually comes back, the remittances will pick up again.

Someone also should also increase the domestic price of gas to atleast what it was on the international market before the russia Ukraine war. And we also need to figure out either how to deal with the IPP contracts - they represent a long term downside. They need to be completely scrapped or renegotiated.

 

[VCheng]

I actually am fairly bullish for Pakistan in the future. Miftah has already taken the right steps to increase price of commodities we take for granted but that the rest of the world pays top dollar for. When IK eventually comes back, the remittances will pick up again.

I respect your right to hold that opinion, of course.

 

[313ghazi]

Great news.

Weak PKR is good for Remittances, Exports and Foreign Investments.

Problem is this nation imports so much, especially fuel for energy.

 

[Olympus81]

I remember few people here saying PKR will stabilize to 200 level after IMF deal few months down the road.

Problem is this nation imports so much, especially fuel for energy.

Bhai, solution is simple, but there is no political will.

1. Get rid of IPP circular debt in the medium term by constructing hydropower or other alternative options.

2. Replace energy imports with other alternate options. Power stations to alternate sources, car petrol to electric etc.

3. Import substitution - identify 5 top imports and try to find local resources. Palm oil is one such item. That will put a good dent in the CAD.

4. Maximize exports - IT, Olive Oil, leather items. Just too focused on textiles to look somewhere else.

A 5-10 year window and things will improve. The PTI did well in terms of constructing dams and controlling CAD but more should have been done in this area. Sustained control of CAD, and with long term stability will come investments and then wealth generation.

 

[alphapak]

Where is Maryam Bhagori's media cell on this thread? Tameem, Fools nightmare and fisher1?

 

[Abdul Rehman Majeed]

Problem is this nation imports so much, especially fuel for energy.

We need to import Gas from Iran.

 

[Ssan]

We need to import Gas from Iran.

If we would be willing to pay our local producers what we pay to import gas from Iran, we would not need to import gas from Iran. Of course, the problem is you would have to increase the price of gas too. But it’s the only long term solution because we can no longer produce all the gas we need and the gas we import costs many times more than what we charge on domestic market.

 

[AZADPAKISTAN2009]

Real reason for the Tanking is Pakistani Business are moving assets to UAE

When you uncertainty comes into Local Market due to illegal government ousting
Wrongful interpretation of Law to oust Imran Khan

The damage has been done at psychological level , that Pakistan is a not stable environment to start a business

PDM and their buying and selling of voters has pushed Pakistani Rupee into Spiral

It is Business 101 , a crook court system , a crook police system is not ideal place to invest

It is not ideal place to rear your children when you can just move to UAE on business IQMA and live in first class infrastructure


PDM has been a traitorous group which has done unrepairable harm to Financial currency just in order to maintain their , illegal no confidence win

 

[maithil]

IMF deal impact totally gone... Dollar back to 235+..

https://twitter.com/x/status/1570292743053647873

 

[Enigma SIG]

How can it be smuggled?? Whose buying or stashing in afg?? Whats going on

Establishment as usual.

Real reason for the Tanking is Pakistani Business are moving assets to UAE

When you uncertainty comes into Local Market due to illegal government ousting
Wrongful interpretation of Law to oust Imran Khan

The damage has been done at psychological level , that Pakistan is a not stable environment to start a business

PDM and their buying and selling of voters has pushed Pakistani Rupee into Spiral

It is Business 101 , a crook court system , a crook police system is not ideal place to invest

It is not ideal place to rear your children when you can just move to UAE on business IQMA and live in first class infrastructure


PDM has been a traitorous group which has done unrepairable harm to Financial currency just in order to maintain their , illegal no confidence win

Pakistan is where dreams die.
Mine sure did.

 

[pikkuboss]

Just saw dollar at 221. What changed?

 

[Samlee]

So why not use barter???