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Pakistan is going to downgraded to Frontier Market from Emerging Market.

Norwegian

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Not a good sign at all, what’s the criteria that we’re now failing to meet that we had met before? I think we were upgraded to EM status in 2017
many intl funds will likely exit PSX if we are downgraded to FM
i see a stock market dip
Back in 2017 Pakistani currency was way overvalued by absconder ex finance minister Ishaq Dollar. It gave false impression to investors about the true health of Pakistani economy. But you cannot fool the investors forever. Eventually Miftah Ismael, the new finance minister devalued PKR because overvalued PKR could not be artificially maintained as it was draining forex reserves and bankrupting Pakistan. That's why Pakistani stock market and economy crashed in USD terms post 2018. Patwaris like @Desprado and @muhammadhafeezmalik would never understand this obvious. For them all the blunders are caused by PTI when in fact PKR was artificially overvalued during their absconder leader Nawaz Sharif govt.
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Pandora

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All are blackmail tactics to throw off Govt which is not heeding US dictation. In coming day many US based firm will start degrading Pakistani status. Also i see a US backed aggressive push to blacklist Pakistan in FATF as well. All these organizations are there for blackmail.
 

Musalman

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Pakistan is a country where the corporates are seen as leeches and tax evaders. Most PDF Pakis deride TATA's, Ambani's and Adani's for making money for themselves. No wonder their market capitalization is very low, if society sees it as evil.
Bulls eye, you are absolutely right
 

Jungibaaz

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Back in 2017 Pakistani currency was way overvalued by absconder ex finance minister Ishaq Dollar. It gave false impression to investors about the true health of Pakistani economy. But you cannot fool the investors forever. Eventually Miftah Ismael, the new finance minister devalued PKR because overvalued PKR could not be artificially maintained as it was draining forex reserves and bankrupting Pakistan. That's why Pakistani stock market and economy crashed in USD terms post 2018. Patwaris like @Desprado and @muhammadhafeezmalik would never understand this obvious. For them all the blunders are caused by PTI when in fact PKR was artificially overvalued during their absconder leader Nawaz Sharif govt.
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Can you please take a few moment to think things through and not jump immediately to a reaction?

And thanks for posting those charts again, this may only be the tenth time that I’ve seen them quoted at me, despite me having raising this current account issue on the forum well before you.
 

N.Siddiqui

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Shayan
@Shayan_k88

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Jun 24

Dear Pakistanis Soon #FATF will be finalising their review on #Pakistan. Just remember: -We recently #AbsolutelyNot them -Didn’t agree to IMF’s on #Budget2021 -No compromise on #CPEC -Calling out west’s hypocrisy on #Palestine and #Kashmir #DeepPockets Prognosis: Grey List



The positive side about this would be PSX will fish in a small pond and will behave like a big fish as frontier market stocks have smaller players.

Earlier Pakistan has to compete with big fishes and being a smaller entity...

Anyways this is more about the PSX and not about Pakistan...


 
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Jungibaaz

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All are blackmail tactics to throw off Govt which is not heeding US dictation. In coming day many US based firm will start degrading Pakistani status. Also i see a US backed aggressive push to blacklist Pakistan in FATF as well. All these organizations are there for blackmail.
These conspiracies shouldn’t be used to deflect short comings. We can and should work harder to achieve better credit ratings. Better index placements. Better investor risk perception etc.

All of this is achievable, ordinary people and technical experts make decisions like this, they aren’t dictated by the US government. I’ve met people in charge of assigning sovereigns outlooks, ratings, and even multilateral lenders. They are ordinary people who take technical views on these subjects. Not everything has to be a conspiracy against Pakistan.
 

Norwegian

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Can you please take a few moment to think things through and not jump immediately to a reaction?

And thanks for posting those charts again, this may only be the tenth time that I’ve seen them quoted at me, despite me having raising this current account issue on the forum well before you.
It's not just the issue of current account but currency manipulation. A nation's currency should reflect its true nature of economy at all times. If currency is artificially overvalued over a long periods of time, it will drain foreign exchange reserves, it will lead to loss of investor confidance and it will lead to sharp devaluation. It is not some rocket science but simple macroeconomics.
 

The Eagle

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The way Pakistani economy is going I agree that this country deserves the downgrade.
Economic condition caused the sudden change of attitude of Pakistan military towards India and also explains the lack of action against India after Aug 5th annexation.
Sometimes, I am not surprised but disappointed by the Indian logic but trying to get used to it. Dude! Even sanctions and whatnot against Pakistan couldn't change anything yet you wish like that. Don't you even consider history of this nation? They were drying Pakistan out but country still went ahead with Nuclear Program. Sanction after sanctions but nothing so Delhi should never feel or expect that there will be a change of attitude towards aggressive yet threatening and war mongering India.
 

IbnAbdullah

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Salaam


It is serious learn from Sri Lanka how a default nation, which has less than 4 billion dollar reserve ,which has mostly based on Swap is running better than us and going to be upgraded in the market.
You mentioned yourself how a country with seemingly worse metrics is getting upgraded but we are getting downgraded.

It's because Sri Lanka isn't playing Hardball with the US.

When you say absolutely not to the US, you obviously are going to suffer consequences. It's just a given. Either you say no and save yourself all the trouble that will come from having US drones bombing Afghanistan from Pakistani territory or accept these pressure tactics as the cost of avoiding more terrorism.
 

The Eagle

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On topic: A lot to be downgraded and hitting Pakistan especially since the so-called world police is denied of any base and even rejected their do more pressure. Pakistanis shall prepare accordingly.
 

Desprado

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On topic: A lot to be downgraded and hitting Pakistan especially since the so-called world police is denied of any base and even rejected their do more pressure. Pakistanis shall prepare accordingly.
It is matter of fact what is nation achieving by this? Ban on Pakistan in gulf countries, worst lobby ever, FATF grey list despite of achieving 27-27 action completion, IMF do not buy PTI bullshit, WB and ADB has blocked 1.1 billion. I mean does PTI want Pakistan to become Iran?
 

Norwegian

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It is matter of fact what is nation achieving by this? Ban on Pakistan in gulf countries, worst lobby ever, FATF grey list despite of achieving 27-27 action completion, IMF do not buy PTI bullshit, WB and ADB has blocked 1.1 billion. I mean does PTI want Pakistan to become Iran?
Yes. It's better to become Iran than slave to US once again as we did in the past
 

The Eagle

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It is matter of fact what is nation achieving by this? Ban on Pakistan in gulf countries, worst lobby ever, FATF grey list despite of achieving 27-27 action completion, IMF do not buy PTI bullshit, WB and ADB has blocked 1.1 billion. I mean does PTI want Pakistan to become Iran?
My Dear! You should know by the history that I don't like political mudslinging at all. I am not a PTI voter or supporter, therefore, nake sure you aren't quoting me merely for the hate against a political party.

Speaking of Pakistan's miseries; didn't happen in 2 years but there's decades of corruption. If you have a bit of love for the country, time to get out of such PTI PMLN PPPP syndrome and look at the culprit. Blaming just 2+ years old government for 30 years old cancer is not intelligent. The reason why Pakistan remains in unstable times.

Regards,
 

Jungibaaz

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It's not just the issue of current account but currency manipulation. A nation's currency should reflect its true nature of economy at all times. If currency is artificially overvalued over a long periods of time, it will drain foreign exchange reserves, it will lead to loss of investor confidance and it will lead to sharp devaluation. It is not some rocket science but simple macroeconomics.
I’m not sure what Ishaq Dar was thinking at the time, perhaps he had a rationale for his view that keeping PKR overvalued was worth it. But even then the warnings signs were there in 2016, I remember having conversations about the economy back then where we primarily discussed concerns regarding CAD and PKR+SBP. Whatever the justification, in hind sight, it was disastrous.

The worst thing about Ishaq Dar is that even now, he will not own up to his disastrous policies, and he continues to make idiotic comments based on GDP growth figures alone.
 

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