Are we going in economic shock ? IMF doing their job

[Zee-shaun]

1. GDP projections are down to 2 % yoY

2. rampant dollar rate hike + interest rate hike has raised prices

3. vehicle prices are now out of reach for middle class. a crappy wagon R is 17 lac after registration

4. just talked to friends in mobilink, telenor, nestle etc. they are laying off and leaning operations

5.lets not even talk about the stock mkt

6. 200 textile mills went on strike today ( it is being dismissed as fake news by PTI club but i HAVE SEEN NO clarification from APTMA yet)
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IMRAN KHAN, wtf is going on sir

Sometimes one has to hit the rockbottom before the cure becomes effective. PTI inherrited a very very sick economy and there's not much we can do except for reforms. At least we are still growing and that's a miracle

 

[Enigma SIG]

1. GDP projections are down to 2 % yoY

2. rampant dollar rate hike + interest rate hike has raised prices

3. vehicle prices are now out of reach for middle class. a crappy wagon R is 17 lac after registration

4. just talked to friends in mobilink, telenor, nestle etc. they are laying off and leaning operations

5.lets not even talk about the stock mkt

6. 200 textile mills went on strike today ( it is being dismissed as fake news by PTI club but i HAVE SEEN NO clarification from APTMA yet)
r

1. You need to slow down before accelerating again.
2. Free market mechanics.
3. Blame lack of auto policy for not bringing in competitors so that prices can be lowered. We are still being sold older generation models as compared to the rest of the world.
4. That is what multinationals do; unlike the local business mafia they do not ask the government for handouts.
5. Tough luck
6. See 4


Exports are up actually

 

[nahtanbob]

As I said, interest rates are raised to encourage savings and to control inflation. It would encourage Pakistani investors holding $bn USD to invest in PKR at higher interest rates than the profit they are expecting on selling USD at higher price due to exchange rate movements. In return, investors will let go off USD, lowering the burden on PKR exchange rate.

Your point of falling PKR doesn't stand because for the last 40 months, Interest rate parity (IRP) does not hold for USD and PKR.

why would anyone hold a currency where inflation exceeds interest rates ? you will shift your wealth to USD or gold

 

[Hareeb]

why would anyone hold a currency where inflation exceeds interest rates ? you will shift your wealth to USD or gold

USD is a currency too. Now read it again: Pakistani investors holding tons of dollars in their wallets due inflation, and expecting to sell them at higher price.
Now, while the inflation in Pakistan is around 7.34% according to Pakistan Bureau of Statistics, central bank has raised borrowing interest rates to 12.25% giving an opportunity to investors to convert their USD to PKR- earning an profit of nearly 5% per annum- in addition to encouraging savings thus controlling inflation. Moreover, investors' action will result in flow of USD in market thus lowering burden on USD exchange rate against PKR.

 

[Mav3rick]

Link to post:
https://defence.pk/pdf/threads/all-...ls-from-tomorrow.625282/page-10#post-11588958

You mean the lie you posted in the other thread which has been proven wrong in the following
Post:

https://defence.pk/pdf/threads/all-...ls-from-tomorrow.625282/page-11#post-11590430

What other thread?

It was just a lie, link to my post above in the same thread.

1. GDP projections are down to 2 % yoY

2. rampant dollar rate hike + interest rate hike has raised prices

3. vehicle prices are now out of reach for middle class. a crappy wagon R is 17 lac after registration

4. just talked to friends in mobilink, telenor, nestle etc. they are laying off and leaning operations

5.lets not even talk about the stock mkt

6. 200 textile mills went on strike today ( it is being dismissed as fake news by PTI club but i HAVE SEEN NO clarification from APTMA yet)
-------------------------------------------


IMRAN KHAN, wtf is going on sir

1. Because the incumbent Government has experimented the economy and commerce to the ground. Things are very very bleak.

2. IMF Conditions, both of them. The incumbent, which swore not to go to IMF has accepted all of IMF demands and has also posted IMF resources at the helm of economy.

3. Everything gets more expensive when the currency weakens as we import almost everything. Even things that we manufacture or assemble requires spares and raw material, including machinery, which needs to be imported and which have a compound effect on the entire industry.

4. With slower economy and limited commerce, people have to be laid off to save the running businesses for as long as sustainable or possible.

5. People are now struggling to maintain their average lifestyle and are scared of investment as everything is losing value. This is killing commerce.

6. This is just the start. Things are going to get very very tough very soon. Unless something drastic happens and we find a decent Finance Minister and Governor SBP.

 

[Flight of falcon]

This is Thpical pandoo public crying.... arguing with people about sound economic policies is so draining..... Pandoos are happy living in debt and loan but won’t try to live within means .....

 

[American Pakistani]

How hard is it to understand for us Pakistanis that Imports & borrowing is not good for us.

Until now, imports, borrowing and so called US aid had run the economic growth and made us lazy. We the 220 million need to get up and start expert oriented businesses. Be an entrepreneur, with whatever capacity you have, take the risk. It's worth it. Else the country will keep going down further and further.

 

[Flight of falcon]

I honestly couldn’t believe that we import so much in foreign brand name foods... how stupid can people
Get .... 700 million in bloody cheese??? We are one of the biggest dairy producers but just for the label we waste money like water

 

[KhanBaba2]

I honestly couldn’t believe that we import so much in foreign brand name foods... how stupid can people
Get .... 700 million in bloody cheese??? We are one of the biggest dairy producers but just for the label we waste money like water

That is 700 million PKR which is not much compared to your total imports.

 

[American Pakistani]

That is 700 million PKR which is not much compared to your total imports.

Which is about 4.6 Million $ just for cheese import.

 

[Hiraa]

Which is about 4.6 Million $ just for cheese import.

Why don’t our dairy companies make cheese? Prema is an excellent milk product and i see at-tahur(prema owner company) just have 5 products.

 

[Thorough Pro]

Stock market had a lot of black money

Stock market is down because interest rate is up.. so no one is investing in stock market investor are playing safe by buying long term bond.

 

[tkmd]

This is Thpical pandoo public crying.... arguing with people about sound economic policies is so draining..... Pandoos are happy living in debt and loan but won’t try to live within means .....

Im assuming you live in Canada. If tomorrow the govt removed your healthcare, doubled your consumption taxes and a lot more you'd be a paindu as well. These politicians don't know the hunger of the average person.

 

[Mav3rick]

Im assuming you live in Canada. If tomorrow the govt removed your healthcare, doubled your consumption taxes and a lot more you'd be a paindu as well. These politicians don't know the hunger of the average person.

Neither do the 'real' paindus who have no idea how economics or commerce works, especially for a country like Pakistan. People who are posting in support of PTI, still, are either:

1. being paid to do so and are part of their media/social media network.
2. are those who are gullible enough to still believe that the previous Government is responsible for the mess which has been created in the last 12 months.
3. are those who have still not seen practical life and are living off their parents.
4. are living abroad and are impervious to the situation of Pakistanis.

Otherwise, all else, like yourself and I, are aware of ground realities and effects of failed/anti-Pakistani policies of Imran Khan. And I blame Imran Khan for all this, not PTI. He is beginning to look like a true threat to Pakistan, just like people used to say before he came into power.

 

[Arsalan]

You mean the lie you posted in the other thread which has been proven wrong in the following
Post:

https://defence.pk/pdf/threads/all-...ls-from-tomorrow.625282/page-11#post-11590430



It was just a lie, link to my post above in the same thread.



1. Because the incumbent Government has experimented the economy and commerce to the ground. Things are very very bleak.

2. IMF Conditions, both of them. The incumbent, which swore not to go to IMF has accepted all of IMF demands and has also posted IMF resources at the helm of economy.

3. Everything gets more expensive when the currency weakens as we import almost everything. Even things that we manufacture or assemble requires spares and raw material, including machinery, which needs to be imported and which have a compound effect on the entire industry.

4. With slower economy and limited commerce, people have to be laid off to save the running businesses for as long as sustainable or possible.

5. People are now struggling to maintain their average lifestyle and are scared of investment as everything is losing value. This is killing commerce.

6. This is just the start. Things are going to get very very tough very soon. Unless something drastic happens and we find a decent Finance Minister and Governor SBP.

Its not a lie sir. I dont have to lie. I am telling you what i know as a member of these associations. APTMA members are all running their mills as usual, APTPMA members (some 20 units in Faisalabad) went on partial strike (with 7-8 units closed as per my estimate but this i cannot vouch for, for APTMA, i can say what i said with surety!! )