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PM okays lifting of 32% flour subsidy

ziaulislam

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Thing is, PTI knew everything from 2016 and interestingly claimed to have everything worked out. 2018 they come into power and they don't deliver and now even after 3 years there is no plan in sight to make structural changes to address the chronic issues of economy.

IMF DOESN'T demand, they only suggest and it is up to the govt to take their suggestions or come up with their own plan.

And what IQ are you talking about?
Thinking 50% devalution wil not cause 50% inflation
Exports are up, revenues are up, major hydro projects started, electricity cost renegotiated
 

maithil

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Next election in Pakistan could be fought on populist slogans .. Will be interesting to see how incumbent responds.
 

Vapnope

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Thinking 50% devalution wil not cause 50% inflation
Exports are up, revenues are up, major hydro projects started, electricity cost renegotiated
Devaluation is one trick which Ishaq Dar used to do, PTI did exactly the same despite criticizing him for years.
If the revenues are up, why subsidies from food and pharma products are being removed? I mean if your exports are up and you are generating good taxes, why burden the common folks with it?
 

Patriot forever

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Thing is, PTI knew everything from 2016 and interestingly claimed to have everything worked out. 2018 they come into power and they don't deliver and now even after 3 years there is no plan in sight to make structural changes to address the chronic issues of economy.

IMF DOESN'T demand, they only suggest and it is up to the govt to take their suggestions or come up with their own plan.

And what IQ are you talking about?
That's not exactly how it works. Like FATF IMF also sets targets for the government. Like curtailing expenditure to a defined limit, reducing circular debt, revenue targets. Then they propose recommendations how to achieve these targets. Like in case of tax revenue target government asked IMF that they will not increase taxes rather try to collect more taxes via reforms efficiency improvement etc.

Like in the recent review there are bones of contention. Tax revenue target ( which we have accomplished to a great degree). Circular debt ( we minimised it to a half as compared to last year but still they are demanding 4Rs per unit hike to balance out circular debt completely).

Unless you fulfill the requirements or convince them that you have made sufficient progress they will either grant more time or not release the amount at all.
 

blueazure

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Why doesnt govt simply print notes
Why do poor have to suffer

Where is my belovd nawaz shatif. He can print notes and save us..

isnt it some thing PTI is doing ?

pkr value plummeting aka more PKR in circulation ?

is there any difference b/w dar and tareen ?
 

Patriot forever

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isnt it some thing PTI is doing ?

pkr value plummeting aka more PKR in circulation ?

is there any difference b/w dar and tareen ?
Haha no bro that's not how it works.

What about the bonds, PIBs, Sukuk etc etc.

CIC is just currency in circulation. The printing terminology is used when SBP creates money out of no where and government throws it in the market.
 

blueazure

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Haha no bro that's not how it works.

What about the bonds, PIBs, Sukuk etc etc.

CIC is just currency in circulation. The printing terminology is used when SBP creates money out of no where and government throws it in the market.
i know what money theory is meray bhai - M0, M1 ,M2 etc

regardless of the above, PKR is DEPRECIATING

CAD is rising

inflation is up




the market has spoken

 

Patriot forever

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i know what money theory is meray bhai - M0, M1 ,M2 etc

regardless of the above, PKR is DEPRECIATING

CAD is rising

inflation is up




the market has spoken
Mostly the international inflation cycle coupled with terf along with pro growth policies. Medicinal imports in August alone was around $400m ( corona vaccines).

Alot of it is signaling to IMF.

The market is speculating, that's happens when one runs a free currency with weak economic base hence the volatility.

This basic correction in our economy is necessary. India went through it in the 90's and early 2000, China in late 70's.
 

blueazure

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Mostly the international inflation cycle coupled with terf along with pro growth policies. Medicinal imports in August alone was around $400m ( corona vaccines).

Alot of it is signaling to IMF.

The market is speculating, that's happens when one runs a free currency with weak economic base hence the volatility.

This basic correction in our economy is necessary. India went through it in the 90's and early 2000, China in late 70's.

i partially disagree with you sir

we have surplus wheat ( bumper crops as claimed by govt ) - + we have surplus milk

yet , food inflation is rising . roti , milk ka dabba, sab mehnga ho raha hai

tandoor roti is 10 rs ( it was 6 rs for a decade) - milk 1 litre anhaar is 170 .

granted, container rates are up almost 3x yet food inflation is not understandable -
 

Wood

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This basic correction in our economy is necessary. India went through it in the 90's and early 2000, China in late 70's.
India and China corrected course by opening their economies to the outside. I think Pakistan is already open for outside investment in most sectors. Correct me if this is not correct.
 

Patriot forever

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i partially disagree with you sir

we have surplus wheat ( bumper crops as claimed by govt ) - + we have surplus milk

yet , food inflation is rising . roti , milk ka dabba, sab mehnga ho raha hai

tandoor roti is 10 rs ( it was 6 rs for a decade) - milk 1 litre anhaar is 170 .

granted, container rates are up almost 3x yet food inflation is not understandable -
Bro wheat is procured right now to replenish the reserves. It is critical that we have stable reserves given the situation in Afghanistan.
One has to keep in mind that in Pakistan for wheat sugar etc sooner or later domestic market prices come in parity with international prices because of smuggling etc.

One needs to see everything is interconnected. Petrol prices (transport) , cows food antibiotics/medicines, the dairy farmers the Middle man and end seller own household expenses has increased ( their profit margin/income is increased to cover their living cost). Shop rent has increased. These all add up to increase in milk prices.

Wheat procurement prices are increased ( farmers input cost has increased such as DAP). Right now the rates offered are very good for farmers and made agriculture profitable. The more happy and content the farmer is the more your country food security. Our wheat output will be very good this season as well.

Baseline is the more one regulate the prices through MSP or government procurement at lower cost the less productive agriculture becomes. In the long run either government has to develop the fiscal strength to completely control the agriculture prices of all prices so that farmers don't end up replacing one crop which is regulated with an another one and threaten food security ( India) or government sets procurement price which is profitable. Setting lower procurement price for just a handful of crops is very dangerous. If one needs food security farming needs to be profitable otherwise we will continue to loose agriculture land to housing societies etc and become a net food importer.

Governments in general should limit their subsidy to input costs such as fertiliser or DAP, affordable seeds etc in case of country like Pakistan. Focus more on breaking cartilization instead of price regulation. This is the only medium to long term solution.

We need to address these fundamental issues in our economy.
 

doorstar

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bread and butter is for every human's issue
in 1948, the UK population was 49.4 million, 70 years later the population stands at an estimated 68.3 million

in 1947 West Pakistan population was 33 million including 7.92 million hindus and sikhs most of them left at Partition. some 70 years later the population stands at an estimated 220 million

so who is responsible for the shortages, the breeders over the past 7 decades or or the current government?
 

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