Why Pakistan Is Facing Rising Inflation?

[_NOBODY_]

Why Pakistan Is Facing Rising Inflation?

Understanding economics with tonight’s guest, Muzammil Aslam - spokesperson of the Minister of Finance. What was his journey like? What is economics according to him? What has he been working on? What are the structural changes the government is taking? Why is there still inflation and are we moving towards growth? Catch this and insight into Pakistan’s economy in today’s episode!

00:00 Tonight’s guest: Muzammil Aslam
00:20 Muzammil’s journey to economics
02:07 What is his perspective on Economics?
04:32 What has he been working on?
08:15 How is Pakistan’s economy doing?
11:50 What were the structural changes that the government took?
25:02 Why is there still inflation?
30:09 What is core inflation?
37:22 Will the dollar rate stabilize?
53:11 Are we moving towards growth through consumption?
01:02:07 Beyond imports can the government realistically increase tax collection?

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[AZADPAKISTAN2009]

Imports should be stopped

a) Except for Oil and Gas (Barter trade should be used , give our excessive items in exchange for Oil from Iran)
b) Tea should be rationed
c) Sugar should be rationed
d) If Malaysia has edible oil in excess buy from them the Palm oil

Trades should be not allowed to buy stock from Local market and sell (Redirect) it overseas
They should be forced to buy it from special outlets for Export only

None Essentials should be stopped from being Imported in Pakistan

a) Chocolate
b) Exotic Biscuits
c) Dog/Cat food
d) Foreign Cars
e) Used cars
f) Used computers and Cell phone
g) Exotic Cheese from 1000km away
h) Exotic Shampoo
i) Cosmetics from foreign sources

 

[Ahmet Pasha]

Chocolate
b) Exotic Biscuits
c) Dog/Cat food
d) Foreign Cars
e) Used cars
f) Used computers and Cell phone
g) Exotic Cheese from 1000km away
h) Exotic Shampoo
i) Cosmetics from foreign

Baji it's impotted just for you mindset=sari zindagi gore ki ghulami.

 

[xyxmt]

THE WHOLE F'ING WORLD IS SO NOW STOP THIS NON-SENSE PLEASE

 

[AZADPAKISTAN2009]

Simple Import/export Balance

• Currently anyone can import anything they want without looking in local market
• Too much food goods going out , low currency exchange returns (Creating food shortages)

Live with in your own means

Imports are easy to stop

 

[Dr-who]

There are other reasons for inflation which is not discussed due to politcal reasons, namely:

Federal govt excessive expenditure
Armed forces non fighting excited expenditure (both of these able ve cause rising fiscal defecit forcing the govt to take loans

Govt fixing commodity prices such as cotton sugar To make constituents happy hence cheaper commodity is not imported.

PSE and it's losses which is financed by the govt by taking loans

 

[AZADPAKISTAN2009]

Shut down Imports for 2-3 Months forget about the Customs duty you rely on to boost the revenues totals

• Only allow Oil and Gas Imports
• Essential Chemicals for Textile

Follow Musharraf Era Policy

• Use Barter Trade to reduce the purchase based on Currency exchange , send on excessive flour , rice out to get back palm oil and Petrol , reduce , the exit of Dollar from reserves
• Engage Malaysia/Iran for Barter Trade

Ration

• Sugar (Medically recommended supply for 4 people per house for 1 month) [Too Much sugar causes diabetes]
• Tea (1 Cup per day) [2 Billion Dollar footprint ]
• Put a limit on allowed sugar used , by Local Biscuit factories reduce Sugar level by 50%
• Ask Local Soda manufacturing companies to only keep sugar level in drink to 5 grams not 24 grams (that's 7-8 tea spoon of sugar per soda pop)

Ban [2-3 Billion Dollar footprint]
> Chocolate (Cadbury , Kit Kat , Mars , Twix etc.)
> Chips manufactured outside Pakistan
> Ban Soda pop acquired outside Pakistan
> Ban exotic Cheese (3 Cows etc. from Distant Destinations )
> Ban Cosmetics being imported from Outside , don't need it to live
> Ban Used car import into Pakistan

One can only imagine amount of Sugar used in Syrup based Desi Sweets


Live with in your means

or

Spread your legs only as far as your blanket allows for covering

 

[AZADPAKISTAN2009]

Pakistan's Import

Pakistan: Rising Imports, Declining Exports & Premature Deindustrialization | Pakistan Business Council

Fostering Economic Growth

www.pbc.org.pk

What is this 31% Others ???????? in the chart ????? (See image below)
Yep, it is all the fancy chocolates and 1 dollar items cosmetics and small items

[Debt payment does not falls under import/export charts so what is this Category for Others 31%????]

This chart below shows total import are close to 26 Billion in 2019 but when you add the individual categories
together you only get to 17 billion

Example
Year 2019

• Petrol 6 Billion
• Machinery 4 Billion
• Food 3 Billion
• Transport 2 Billion
• Textile 2 Billion

6 + 4 + 3 + 2 + 2 = 17 Billion

The first bar states there is 26 Billion Import bill in 2019

Pakistan's Import

• 3 Billion food is being imported by Pakistan an agricultural country what am I missing ?
• 2 Billion Textile is coming into Pakistan from outside what am I missing ?

Pakistan's Export

If people can shut down import of items which fall under category "Others"
There lies your National Problem

We are importing stuff we really don't need



Ban all item from import into Pakistan under the "Other Category" based on charts above and our problem is solved
Most are just luxury items

 

[AZADPAKISTAN2009]

Economist when will be asked , bhiya , explain this chart and why the numbers don't add up
and what is this "Others category 31%" not oil and gas , clearly the graphs show all break down of known % for usage

But this mysterious category of "All Others 31% is not tracked or explained" of course we will have a deficit

If Economist can't explain this simple problem to Prime Minister Imran Khan they should really resign


Logical person like me will tell Customs /Import Export departments to
Ban all stuff coming to Pakistan under "Others category" Till a master list is created what is being imported

 

[hydrabadi_arab]

First few years of inflation happened because of currency devaluation.

 

[ARMalik]

Why Pakistan Is Facing Rising Inflation?

Understanding economics with tonight’s guest, Muzammil Aslam - spokesperson of the Minister of Finance. What was his journey like? What is economics according to him? What has he been working on? What are the structural changes the government is taking? Why is there still inflation and are we moving towards growth? Catch this and insight into Pakistan’s economy in today’s episode!

00:00 Tonight’s guest: Muzammil Aslam
00:20 Muzammil’s journey to economics
02:07 What is his perspective on Economics?
04:32 What has he been working on?
08:15 How is Pakistan’s economy doing?
11:50 What were the structural changes that the government took?
25:02 Why is there still inflation?
30:09 What is core inflation?
37:22 Will the dollar rate stabilize?
53:11 Are we moving towards growth through consumption?
01:02:07 Beyond imports can the government realistically increase tax collection?

Question - WHY IS THE WHOLE WESTERN WORLD AND DEVELOPING WORLD FACING HIGH INFLATION??? One example, Why are there people demonstrating on the streets of Turkey against Inflation?

It is silly to see this as a Pakistan specific problem.

 

[Ghessan]

https://www.pbs.gov.pk/content/imports-commodities-last-5-years

check import data on Pakistan Bureau of Statistics for year 2020-21:

 

[AZADPAKISTAN2009]

The general , none technical view point in Pakistan is that we are seeing a deficit between trade balance for Import/Export because

a) Oil and Gas (20%) - [Most people blame the Import / Export balance deficit on oil and gas]
b) Import of Machinery (12%)
c) Small suspicion on Edible oil (4%)


This is merely 38%



The damage is being done by the "Others" Category which is untracked/untraced 31% small goods

• Chocolate (Mars/ Twix / KitKat / M&Ms , the $1-$2 range import items every one picks up weekly at store
• Imported Chips bags range of $1-$3 dollar range (Pringle, Shringle etc)
• The exotic Cheese , coming in from Middle East to Pakistan some local Pakistani Trader distributes it in Pakistan
• The fancy brand name clothes for Upper Class
• Fancy Perfumes/ Men's Clognes
• Cosmetics from Overseas
• Cell Phones imported from outside
• Electronics imported from outside , repackaged with local brand name
• Subscription to entities like Netflix (Untaxed as they don't have any office in Pakistan)
• Luxury imported vehicles 20,000 USD -100,000 USD range even with duty paid , it is big chunk of dollars per person
• Possible purchase of plastic making raw chemicals or components instead of bio degradable paper bags or cloth bags

APPROXIMATLY FIGURE OF $8.3 Billion Dollar small items untracked under Others category

 

[CatSultan]

Their would be no inflation if we used gold or crypto pegged to gold

How Cryptocurrency Can be used to Solve the Inflation problem

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defence.pk

 

[WarKa DaNG]

Luxury imported vehicles 20,000 USD -100,000 USD range even with duty paid , it is big chunk of dollars per person

Isn't the vehicle import is banned ubless you are living overseas and has to pay the duties and taxes in dollars from your foreign account or am I missing something?