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Is pakistan under global government

jacklord

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Jun 21, 2017
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I see some recently and its a cause of concern how come global government bodies controling pakistan where pakistan military is standing on this.please see somes news and decide it youself

Govt deliberates on UN request to limit military's role in civil spheres

World Bank’s role in drafting Pakistan's oil exploration law stuns senators


IMF says devaluation of Pakistani rupee helpful for economic growth

How come poor country with rupee devaluation helpful in debt issue and support economic growth

 

somebozo

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Jul 11, 2010
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I see some recently and its a cause of concern how come global government bodies controling pakistan where pakistan military is standing on this.please see somes news and decide it youself

Govt deliberates on UN request to limit military's role in civil spheres

World Bank’s role in drafting Pakistan's oil exploration law stuns senators


IMF says devaluation of Pakistani rupee helpful for economic growth

How come poor country with rupee devaluation helpful in debt issue and support economic growth

Should learn Economics ABCD..
Devaluation of currency raises foreign borrowing cost at the same time also making imports expensive..while exports may become cheaper and indigenous industry may benefit by serving local market.

Maintaining strong dollar was the gem of Ishaq Dark economical kala jadoo...it gave us a hefty import bill while many local industries were slaughtered..soo artificial was the USD/PKR peg that Chinese were able to import cheaper construction material from China for use on CPEC.
 

jacklord

FULL MEMBER
Jun 21, 2017
385
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237
Country
Pakistan
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Pakistan
Should learn Economics ABCD..
Devaluation of currency raises foreign borrowing cost at the same time also making imports expensive..while exports may become cheaper and indigenous industry may benefit by serving local market.

Maintaining strong dollar was the gem of Ishaq Dark economical kala jadoo...it gave us a hefty import bill while many local industries were slaughtered..soo artificial was the USD/PKR peg that Chinese were able to import cheaper construction material from China for use on CPEC.
By reading your golden reply all countries should devalue their currency
 

Enigma_

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Nov 22, 2017
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Honestly reading some of the news coming out recently it is scary how compromised the entire country was and continues to be!
 

Bilal Khan (Quwa)

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Aug 22, 2016
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By reading your golden reply all countries should devalue their currency
Currency valuation isn't always in the control of governments. While the margins can be lowered or increased, the general value area is determined by what one exports.

Countries that are exporters of high-demand and high-value goods will see their currencies experience the highest amount of demand from the world market, thus (in the absence of issuing more currency) raising the value of currency. If your currency is currently cheap (or has no other option but to be cheap), then you aim to export high-value products and services to the world market. Your cheaper currency (and lower labour and production costs) should in theory generate demand from overseas. If many overseas buyers seek your goods, they'll buy your currency, thus pushing the cost of buying your currency up (i.e. raising currency value).

Pakistan's problem is that it has been trying to peddle inherently low-value goods with a high (market value) currency. That's a toxic mix. For Pakistan to boost its exports in volume and value, it needs to enter spaces like supplying for green energy tech, gas turbines, complex materials, high-grade steel, etc. These are expensive to import from Europe, so having Pakistan (with its presently cheap currency and labour costs) enter the mix could help it build healthy exports while also giving Pakistanis good jobs. The PKR will naturally rise as demand increases and things will begin balancing out.

Unfortunately, it doesn't seem like Pakistan's government - or political leadership as a whole - are adept at basic economic thinking, much less applying that thought to help Pakistani producers access the right markets.
 

somebozo

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By reading your golden reply all countries should devalue their currency

All countries have to balance their imports and exports..and this strategy reflect their currency...devalue too much and their currency may become junk in international markers..infinite devaluation does not spur economic growth, as in the case of Japanese Yen.

Currency valuation isn't always in the control of governments. While the margins can be lowered or increased, the general value area is determined by what one exports.

Countries that are exporters of high-demand and high-value goods will see their currencies experience the highest amount of demand from the world market, thus (in the absence of issuing more currency) raising the value of currency. If your currency is currently cheap (or has no other option but to be cheap), then you aim to export high-value products and services to the world market. Your cheaper currency (and lower labour and production costs) should in theory generate demand from overseas. If many overseas buyers seek your goods, they'll buy your currency, thus pushing the cost of buying your currency up (i.e. raising currency value).

Pakistan's problem is that it has been trying to peddle inherently low-value goods with a high (market value) currency. That's a toxic mix. For Pakistan to boost its exports in volume and value, it needs to enter spaces like supplying for green energy tech, gas turbines, complex materials, high-grade steel, etc. These are expensive to import from Europe, so having Pakistan (with its presently cheap currency and labour costs) enter the mix could help it build healthy exports while also giving Pakistanis good jobs. The PKR will naturally rise as demand increases and things will begin balancing out.

Unfortunately, it doesn't seem like Pakistan's government - or political leadership as a whole - are adept at basic economic thinking, much less applying that thought to help Pakistani producers access the right markets.

Not only by what one exports but also..

  1. Value of such exports..or example high tech and R/D products / services have much higher demand than agarain based cotton and kinnows.
  2. Demand of your products in International markets.
  3. Ease of trade with other countries..geographic luck factor...for example Canada makes a bunch of good stuff on the cheap..but it is easier to import from USA to Pakistan as compared to Canada..therefore Canada with all its advantages is still at disadvantage for trading with Pakistan on many product lines.
 

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