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Shahbaz Sharif is right in a point of view devaluing PKR from 130 to 155-168 had no impact on Export.

Shabi1

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Shahbaz Sharif is right in a point of view devaluing PKR from 130 to 155-168 had no impact on Export.

In my point of view we had no advantage for export in Pakistan. Only thing market base currency has bought is inflation and things for inflated.

FDI dropped massively as well, indirect tax increased as well and Asad Umar compromised CPEC contract sharing with IMF in 2019.

In my point of view, Asad Umar and Hafeez Shiek badly negotiated IMF program in the history Pakistan it has delayed for more than year now. Now again delayed to September just because it was very badly negotiated and Government has no experience how to deal with International lenders.
Problem with SS is neither his assessment is realistic or has solutions. This habit of ordering change and relying on short term fixes has led us to where we are. I stopped listening to him after his speech in parliament post Balakot, it was a matter of national importance and he was still point scoring, repeating things the gov was already doing and proposing going beyond which was war, when IK asked clarity he denied. Being recorded on camera and then denying how low can you go. I get it opposition hates PTI/IK and get irritated whenever they bring up past performance, have the right to criticize but don't be a misogynist to Pakistan. Not aiding in any development because you don't want Pakistan to prosper under the current gov will do no good.

PKR was not devalued for solely boosting export, that was a expected by product. The primary reason for this move is Pak gov was borrowing dollars and pumping into market to keep it at a level, this can only be done for short term and not a sustainable method unless you have huge reserves. This was started during Gen Musharaf era and was ok then because US was pumping dollars but instead of stopping subsequent governments made it worse by over relying on it. This is one of the greatest failures of Dar economics as that was the point where it should have stopped. IMF aside this is something recommended by all independent economists and well known that borrowing for sake of overvaluing PKR was not sustainable.

Making the currency valuation market based instead of gov regulated has affected inflation and is not a popular move if you want to win elections but this is the right decision in the long run and reduces financial burden on the gov to reduce borrowing and increase reserves. Sort of like surgery, its painful right after the operation but once recovery starts it gets alot better. So same scenario, it was inevitable so so had to happen sooner or later and resulted in inflation increased but gov finances are improving. Eventually will trickle down to masses as gov has more to spend in health and other avenues.

There is no reality in saying CPEC is compromised there is no project they are pulling out or cancelling. What is being done gov is being careful in adding new projects to it. Problem which is being addressed is previous gov was keep on adding new projects to CPEC scope, issue had become so much that eventually if we kept doing this the repayment would be an issue as you would not have a balance between earning and payback. That is Pakistan would have to payback more than what it can afford compared to earnings from CPEC benefits. Diversification reduces the risk on CPEC collaterals. Alternate investment avenues being explored and most prominent is support from overseas Pakistani's. Which is why Ravi waterfront project investment is diversified.
 
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crankthatskunk

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I have repeatedly made two comments on this forum. Those comments are very well thought of and have merits behind them.

1- Ishaq Dar is the biggest criminal Pakistan faced. He should be brought back, tried for treason and given death penalty.

2- Two curses he has brought on Pakistan, which continue to have their shadows over Pakistan's economy and politics.

A- 18th Amendment. Pakistan has to get rid of this amendment at any cost. If you do not get rid of this amendment, Pakistan would disintegrate. It has been brought in to destroy Pakistan, both financially and politically. Politically, we observe Asif and Bilawal Zardari already playing "Sind Card" even though the going had not been tough for them. A conservative estimate is that Zardari launder roughly half of Sind's share given to them due to 18th.
I have just posted a video in which a small goon of PPP is directly attacking CJ of SCP. The game is on, but most Pakistani are not seeing it.
Most here are filling up pages on the "Range of meteor", or posting some fanciful allegedly "exclusive" pictures of "JF Thuder". As I said, Pakistan would not be saved or lost due to that, it would be lost in the dirty politics played at the moment.

We all should wise up and see the "Elephant" in the room.

B- His scam of borrowing on the name of "Private Companies" with "Sovereign Guarantees". Never showing those borrowing in official figures. So technically and for all purposes Pakistan was bankrupt in the era of PMLN. The rupee was propped up on the back of those loans.

The Current Liabilities were more than the "Reserve" Pakistan had.
Both Dar and then Muftah Ismail knew it.

That is the reason PM IK has to go to the Arabs and China to arrange few billions on short notice. If he has not done that, Pakistan would have defaulted, it was already bankrupt.

I hope I have made it simple and plain for everyone to understand.
 

Patriot forever

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Yes, value addition and innovation are key for promotion of export. We are still producing denim cloth which we were producing 50 years ago at almost same rate. We had lost billions in export of leather cloths because of non-innovative policies of tanneries.
Pakistan will continue to export denim because people will be buying denim jeans for years to come.

If you want to know how value addition works, just look at export figures of plain cloth over end products, and compare the figures between 2018 and 2021.

Innovation on the other hand will take time.
 

The Accountant

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Shahbaz Sharif is right in a point of view devaluing PKR from 130 to 155-168 had no impact on Export.

In my point of view we had no advantage for export in Pakistan. Only thing market base currency has bought is inflation and things for inflated.

FDI dropped massively as well, indirect tax increased as well and Asad Umar compromised CPEC contract sharing with IMF in 2019.

In my point of view, Asad Umar and Hafeez Shiek badly negotiated IMF program in the history Pakistan it has delayed for more than year now. Now again delayed to September just because it was very badly negotiated and Government has no experience how to deal with International lenders.
Then why china always keeps on trying to depreciate yuan ?

This policy is right.

However the real benefit will be earned once local production capacity starts working.

Visit markets and there is a ntieable reduction of imported goods or at minimum they r now expensive then locally manufactured goods.

We got massive growth ln LSM sector and agriculture sector despite of pandemic and lockdowns.

We need to keep on building manufacturing capacity for consistent growth
 

Zibago

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I believe that Shaukat Tareen's appointment as Finance Minister, despite his historical criticism of the government for depreciating the PKR, is an admission that the decision to depreciate the Pakistani Rupee by 30-40% was a mistake.
You can either keep the currency inflated by government intervention and waste precious dollars in doing so or you let the market decide where the value lies

Dar wasted 15 billion in just keeping an artificial value to keep imports cheap
PS: I am not opposed to the depreciation of the Pakistani rupee, as we lose about 8% to 10% of our currency's value every year, but in this case, we let the rupee to free fall, causing us a slew of issues.
Dar era when depreciation was delayed was the reason why we went from 128 in July 2018 to 160 in 2019
 

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