Dollar hit to 166.30 inter bank market against PKR. 2.2 rupee devalaution in a just 3 days.

[Maula Jatt]

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They will all end up in crisis eventually if they keep supporting their currencies. Look at Lebanon.
View attachment 773035

They're playing with fire

Pakistan nei is saal daba kr imports ki hain na according to PTI ministers "for machinery", ab agei pta chalei ga kitni hoti hai industrial development

They did though unfortunately it's mostly textile, followed by light engineering and electronics/pharma

 

[Super Falcon]

If you keep swallowing foreign refuges this will happen

 

[CatSultan]

Or dollar is just going down. 40% of US dollars where printed in the last year and living in America I can tell you that the purchesing power is much less. Stop using dollar as a standard

 

[The Accountant]

Khoyta CAD is only booming not because of imports. From March we had 5.4 billion dollar import as regular still on march we ad 163 million CAD. This time even with more remittance, and more export we had 600 million more CAD is due that foreign investor has stopped investing and their is no inflows in secondary market, FDI, SCRA and their is outflows from FDI and secondary market.


3 Reason

1) IMF program suspended

2) PKR assets returns is in -

3) Lack of progress in CPEC as even Chinese investment was less than ever since 2010.



It means IMF condition will be more strict for the sixth review because IMF condition is that CAD should be manageable from inflows but not devaluing currency. So will see interest rate hike to 15% if we do not manage it before IMF program starts.

If u dont know the definition of current account then dont give wrong information.

CAD do no include FDI or loan payments.

Furthermore u are also wrong about IMF. Pakistan got 2.7 billion from IMF just 2 days back.

So stop behaving like cry baby and do not report incorrect false info.

@mods please look into this cry baby as he is providing factually false info about Pakistan. Handle this propaganda machine as per forum rules

 

[Aneeq Rashid]

Yes you need confidence when devaluing a currency to 42% to control CAD of 19 billion dollar, decrease FDI, no export increase, no major investment came, changed 3 FM, 6 FBR Charmian, 2 times suspended IMF program etc. Another lolipop is that to manage of 13 billion CAD this Fiscal year you need to devalue PKR again 40 to 50% and still CAD will be 13 billion dollar. Do you ever seen a country like Pakistan? No because PTI is curse for Pakistan economy.

For government to manipulate currency, it needs to spend money to keep at a rate you want. That money just goes in to a hole which gives no return. Unless there is a specific reason.

There is a reason why no country on the planet the manipulate currency like Pakistan have done in the past. Some countries keep their artificially low but no one keeps it high like Pakistan where 1$ =100 pkr when in reality its 1$=150pkr.

 

[muhammadhafeezmalik]

If the exchange rate is to increase, then curse on such reserves : Dr. Ashfaq
see 8:26 onward

 

[hydrabadi_arab]

Good for exporters or those looking to invest in Pakistan products. We need consistent policy of market based exchange rate to discourage imports. Once CAD is under control then rupee will become stable. Give it few more years, inshallah in 2023 our exports will reach $50 billion.

 

[Zibago]

If I am a business owner and I open up a it firm or a factory in Pakistan and I am using usd and it's constantly fluctuating like a mad man

That's not good for business, actually I would want nothing to do with that country, put yourself in the shoes of that business and figure out why a constantly wildly changing usd isn't good for my business

That depends on whether you are an importer or an exporter

 

[Patriot forever]

If I am a business owner and I open up a it firm or a factory in Pakistan and I am using usd and it's constantly fluctuating like a mad man

That's not good for business, actually I would want nothing to do with that country, put yourself in the shoes of that business and figure out why a constantly wildly changing usd isn't good for my business

That is a very valid question.

People don't realise that such changes will continue to happen both up and down as we are in a transitional period, in a few years down the road we will find an equilibrium where the pace of inflows and outflows will counteract each other and the changes will get more and more subtle, basically your own industry will start catching up with imports (substitution), and industries like textile in the short term and even e.g. electronics in the long term grow enough to cover the gap of necessary imports like crude etc along with remittances.

If you are import based firm/industry the weaker the currency your margins will shrink and business will find it harder to compete against new local producers as they take advantage of their import counterpart getting more expensive and vice versa if one is export oriented.

It is necessary to ride the storm and not bail out in the transition period as weaker rupee will cause inflation in an import dominated economy before your own industries gets a chance to catch up and offer local substitutes at a more reasonable price otherwise all this will be in vain.

 

[hydrabadi_arab]

Don't get me wrong, rupee tanking is worrying but this isn't going to get fixed in few years. Pakistan economy is based on imports and one reason was that govt continued to fix dollar rate by wasting foreign exchange. This is unpopular but right way.

 

[Desprado]

Good for exporters or those looking to invest in Pakistan products. We need consistent policy of market based exchange rate to discourage imports. Once CAD is under control then rupee will become stable. Give it few more years, inshallah in 2023 our exports will reach $50 billion.

Decreased in export and increase more import in August 2021. Can we stop this BS excuse.