US dollar hits all-time high of Rs142 in interbank market

[LeGenD]

Someone has to get his hands dirty to clean the house and IK is doing just that. I think it's a good move, but it could have been done in a systematic gentle way. This sudden bursts of devaluation will affect everyone.

China has gained a lot by keeping its currency undervalued, dont know why India and Pakistan be so emotional about exchange rates. Let the rate remain low for few months and then FDI will start flowing in when they realize its cheaper to produce goods in Pakistan

Devalued currency is of no use to a country which have poor exports (poor manufacturing base), experiencing a BOP crisis due to large gap between exports and imports, and seeking loans to cope with widening trade deficit.

In our case, devaluation of currency correspond to higher debt burden. For example, KSA provided 1 billion USD to Pakistan on 2% interest rate for 1 year duration [lending package]. We will have to repay the same amount in USD (principle + interest) to KSA irrespective of PKR sliding in value (amount of PKR increasing for repayment). Now, think about potential implications for the LIABILITIES section of companies due to currency devaluation.

Loans are coming but expenditures are in motion (it is not like billions of USD will be piling in SBP and just stay there; there are/will be OUTFLOWS). Pakistan need to cut down on imports on all fronts + stimulate its manufacturing base [incremental steps towards this end; making imports expensive is not a sound policy on its own]; far from easy due to pressures of energy crisis (insufficient subsidiaries in the supply rates of gas/coal/oil to companies?; companies bearing the costs of independent methods of power production to negate load-shedding?; shortfalls in supply of gas/coal/oil to companies which might hinder expansion?), water crisis (incoming), competitive pressures, and potential implications of the devaluation of PKR in relation to USD. Chinese goods have flooded our markets (single biggest contributor to trade deficit), and we are not on good terms with US (biggest customer). Entrepreneurships also need money to takeoff.

China exports (2017) = 2263.33 (billions)
China imports (2017) = 1841.89 (billions)

GAP = 0.81 ratio (SURPLUS)

India exports (2017) = 298.38 (billions)
India imports (2017) = 447.24 (billions)

GAP = 1.49 ratio (DEFICIT)

Pakistan exports (2017) = 21.57 (billions)
Pakistan imports (2017) = 57.75 (billions)

GAP = 2.67 ratio (DEFICIT)

China and India are among the largest exporting economies, with China on a surplus trajectory and Indian trade deficit being much lower than that of Pakistan (1.49 versus 2.67).

Pakistan is not in a easy position, and chill attitude won't do. Not sure if PTI-led government can fix so many problems in just 5 years.

 

[AZ1]

different items , from cloths to paper , from ink to chemicals …. from led lights to generators …. basically imports according to seasons , demand , profit , market , etc ……
Sir g not a big fish , but a good middle class importer ….. as many other Pakistanis .

Sir you need to revised your business model and try to become exporter. Actually it's always bad to be as importer eventually price will go higher because of loans taken back in years. Either people stop buying it or will buy local things.
Where do you import from? May be visit china check better market price there to meet your needs.

 

[Goku-kun]

Make a thread bro I will research and contribute info to it. Just tag me there and I will dump info every day.

You remember a year ago dollar went up in PMLN govt I supported it and you were cursing me trust me we need to make this transition from imports to exports.



Govt has made economic zones and financing facilities under cpec for your convenience go explore them. This is the purpose of cpec. Shift or change will hurt you because it is going to happen any way.

Hey bro can you please open a new thread with title 'Bhagat Singh: a terrorist' and this is purely for the people of Kashmir who are freedom fighters but are called terrorists by india so bhagat singh was also a freedom fighter in india's eyes but was declared as terrorist by British due to his freedom activity so you probably get the point that what i wanna say and i'll be posting some facts in it.Thanks

 

[BHarwana]

Hey bro can you please open a new thread with title 'Bhagat Singh: a terrorist' and this is purely for the people of Kashmir who are freedom fighters but are called terrorists by india so bhagat singh was also a freedom fighter in india's eyes but was declared as terrorist by British due to his freedom activity so you probably get the point that what i wanna say and i'll be posting some facts in it.Thanks

Okay bro in some time I will do it post an op and tag you.

 

[Goku-kun]

Okay bro in some time I will do it post an op and tag you.

yah but plzz don't forget about it as i'm strong in Kashmir topic.Thanks

 

[AZ1]

Price is back at 136 now what who did it?

Are they checking the reaction before making it to real? So thread is already here to stay 142 to 145 and we saw all type of reactions now and now their mind is prepare.
but good thing is deficit already decline 2%.

 

[Sine Nomine]

Trust me let it be night and check the public on restaurants

Go to country side.

economy on the brink of collapse and the esteemed tomato farmer cum economist is telling you everything is already. Move your money out now before pkr hits 200+

Nothing bad about, being farmer
He has grown wheat,chillies and other veges.Water is abundent along with fire wood.He knows if shit hits fan,he would have supply of food.

 

[Śakra]

Go to country side.

Nothing bad about, being farmer
He has grown wheat,chillies and other veges.Water is abundent along with fire wood.He knows if shit hits fan,he would have supply of food.

What he is doing is spreading misinformation. The problem is the middle class PDFers on here will belief them and not act in their economic interest. Is he going to compensate them for their lost money? He should leave economics to the experts.

 

[AZ1]

Go to country side.

By this logic. Roti was 50 paisa then 1, 2,3,4,5,6,7,8,9,10 in all these years and we have our population grown from 10 crore to 20 crore. So roti were available to them.

 

[BATMAN]

I pity the next govt. which most likely would be army taking over a bankrupt state.

 

[The Diplomat]

Go to country side.

Nothing bad about, being farmer
He has grown wheat,chillies and other veges.Water is abundent along with fire wood.He knows if shit hits fan,he would have supply of food.

Farmers are suffering; my cousin manages my farm alongside his own (they are next to each other). The boarder closes and exports stop, our export market is much larger than our local market.

I pity the next govt. which most likely would be army taking over a bankrupt state.

Those days are over. The army may control from the bavk but will not impose Marshal Law.

 

[AZ1]

What he is doing is spreading misinformation. The problem is the middle class PDFers on here will belief them and not act in their economic interest. Is he going to compensate them for their lost money? He should leave economics to the experts.

Are you really burning from inside? This thread has nothing to do with indian yet you came here to target one guy whom you indians can't handle.

 

[BATMAN]

Those days are over. The army may control from the bavk but will not impose Marshal Law.

What's the solution? We can't leave Pakistan in the hands of a donkey!

 

[The Diplomat]

What's the solution? We can't leave Pakistan in the hands of a donkey!

You’re right, our economy has prospered in the hands of the military. Ayub’s era was the best and Musharraf’s was good as well however do you think the military will take control? I don’t as they have learned their lesson; once military rule is over these donkeys bad mouth the army so much that people become double minded.

We nees economists like Atif Mian; expert advisers that can advice the government.

 

[BATMAN]

You’re right, our economy has prospered in the hands of the military. Ayub’s era was the best and Musharraf’s was good as well however do you think the military will take control? I don’t as they have learned their lesson; once military rule is over these donkeys bad mouth the army so much that people become double minded.

We nees economists like Atif Mian; expert advisers that can advice the government.

Military never had plan to take control. It's always circumstances and compulsion.
When country is bankrupt, what's the solution.. Pakistan has to pay back all those loans which Imran Khan is taking now.