what is happening to pak rupee will it ever recover ?

[Fawadqasim1]

A question for @BHarwana

 

[Morpheus]

Yes, but not right now. It will take time. Before PMLN used our foreign reserves to keep the dollar price low, giving the false idea that PKR was stronger. It did lot of damage to our economy in long run. What you are seeing are affects of that damage economy. If you want the dollar to fall, we need to fix the economy, which will take time. Once our economy gets strong, you will see the dollar rate falling.

 

[Syed1.]

When Pakistanis start exporting over a 100b then it might recover. Till then it'll keep going up and up.

 

[Pakistan Space Agency]

The Shaikh Chillis believe if the rupee is weakened, exports grow automatically hence Cartoon-e-Azam PM Imran Khan's Shaikh Chillian logic was imposed on the country... only that in January 2020 at a PTI rally he denied having anything to do with devaluing the currency (but his followers didn't notice and are still peddling his theory as a positive thing).

 

[Morpheus]

The Shaikh Chillis believe if the rupee is weakened, exports grow automatically hence Cartoon-e-Azam PM Imran Khan's Shaikh Chillian logic was imposed on the country... only that in January 2020 at a PTI rally he denied having anything to do with devaluing the currency (but his followers didn't notice and are still peddling his theory as a positive thing).

If the economy (manufacturing, agriculture, textile, etc) is worked on, then the economy will be stronger. When our country is producing products that are not needed from outside, then import will go down. Our exports will also increase as well. Both these will have a major affect on the exchange rate.

Read up on this here

https://www.investopedia.com/articl...teresting-facts-about-imports-and-exports.asp

When imports are cheaper, it kills our local industry.

 

[BHarwana]

A question for @BHarwana

Here are the factors which are effecting Pakistan rupee.
The biggest factor which is effecting the rupee currently is covid19. Most of the business is shut so it seems the best investment in this time is foreign exchange which can be managed sitting from home with out much effort.
Secondly the pandemic has effected the income of middle class but upper class is still enjoying their perks. there are many who received their deliveries of imported Audi in last few months even during the lock down so this implies high income luxury purchases are still happening. The due to lock down the transactions are bit slow people have dollar which they want to convert but the brokers are not available due to lock down they are closed. Those were few of corona virus effects that were making rupee lose value. The availability of dollar is the reason. The price mainly depends on how much dollar is floating in the market than how much is available in the country. The floating dollar is less due to the lock down.
Your reserves are good but exchange rate is depending on the available at pos.

https://twitter.com/x/status/1271321799502913537

Now these reserves are few hundred million dollars less than the start of lock down why cause during the lock down economic and production activity was slow and companies were mostly pushing products in market from their stock which they were holding after the lock down was lifted the raw material was low so companies imported raw material at once which effected the dollar in market now once the production starts and economy gets on road the dollar price will come down and rupee will strengthen a bit.

 

[Pakistan Space Agency]

If the economy (manufacturing, agriculture, textile, etc) is worked on, then the economy will be stronger. When our country is producing products that are not needed from outside, then import will go down. Our exports will also increase as well. Both these will have a major affect on the exchange rate.

Read up on this here

https://www.investopedia.com/articl...teresting-facts-about-imports-and-exports.asp

View attachment 642490

When imports are cheaper, it kills our local industry.

Do you know the import figures for the US, China, Japan and Germany?

 

[Morpheus]

Blue means export surplus, while tang means deficit. Surplus mean more export then import. Deficit means more import then export.

https://www.economicshelp.org/blog/9996/trade/effect-current-account-surplus/

China:

https://tradingeconomics.com/china/current-account

Japan:

https://tradingeconomics.com/japan/current-account

Germany:

https://tradingeconomics.com/germany/current-account




Have a look at Pakistan.

https://tradingeconomics.com/pakistan/current-account-to-gdp

If we turn this into blue (surplus) you will see a improvement in our dollar rate, also lower inflation, higher employment, better quality of life, etc.

 

[Pakistan Space Agency]

Blue means export surplus, while tang means deficit. Surplus mean more export then import. Deficit means more import then export.

https://www.economicshelp.org/blog/9996/trade/effect-current-account-surplus/

View attachment 642497

China:

View attachment 642491

https://tradingeconomics.com/china/current-account

Japan:

View attachment 642492

https://tradingeconomics.com/japan/current-account

Germany:

View attachment 642493

https://tradingeconomics.com/germany/current-account




Have a look at Pakistan.

View attachment 642499


https://tradingeconomics.com/pakistan/current-account-to-gdp

So, you don't have the import figures for the US, China, Japan and Germany?

 

[Morpheus]

So, you don't have the import figures for the US, China, Japan and Germany?

If you start using your brain, and actual drag your mouse cursor over to the links and clicking them, it will open a website that has all the import/export/current account data.

 

[Pakistan Space Agency]

If you start using your brain, and actual drag your mouse cursor over to the links and clicking them, it will open a website that has all the import/export/current account data.

I only asked for the import figures for the US, China, Japan and Germany. Which part of that you didn't understand?

 

[Morpheus]

I only asked for the import figures for the US, China, Japan and Germany. Which part of that you didn't understand?

Your are hopeless.

What a shame, a good username like that is being wasted by someone with single digit IQ

 

[fitpOsitive]

A question for @BHarwana

Post corona World will be different. Food and edible items will have more value. If we start working on dams and canal systems, then I see Pakistans future very bright.

 

[khail007]

Yes, but not right now. It will take time. Before PMLN used our foreign reserves to keep the dollar price low, giving the false idea that PKR was stronger. It did lot of damage to our economy in long run. What you are seeing are affects of that damage economy. If you want the dollar to fall, we need to fix the economy, which will take time. Once our economy gets strong, you will see the dollar rate falling.

View attachment 642486

As you explained and further when we as Pakistanis will commence on the path of 'innovative hard work' to increase the output, we will be able to uplift our export, economy, country.

 

[Armchair]

Your are hopeless.

What a shame, a good username like that is being wasted by someone with single digit IQ

Thank you for the intelligent explanation and linking the consistent deficit to the weakness of the Rupee. I am just surprised / disappointed that PTI could not reign in imports. It shows gross incompetence specially coming to luxury and non-essential imports.

Don't worry about that character, he doesn't see reason or logic and has a blind hatred of the current Pakistani government.