Dollar touches Rs100 mark again

[JohnyD]

US economy is recovering and in fact doing well....there is uncertainty in Middle East....so Dollar is bound to get stronger against all currencies.. Nevertheless, Pakistan has to increase its export and invite more FDI which is the only way it can stabilize its currency in long run!

 

[SBD-3]

Pakistan Muslim League (N) is yet again proving to be incompetent on the economic front. A bit of wind and the economy is in turmoil.

Confidence is a fragile thread like a spider's web. where a single blow can undo years of hardwork....

Check this out...

In 1999 [Nawaz Gov before ousted due to to incompetance] Pakistan’s total public debt as percentage of GDP was the highest in South Asia – 99.3 percent of its GDP and 629 percent of its revenue receipts, compared to Sri Lanka (91.1% & 528.3% respectively in 1998) and India (47.2% & 384.9% respectively in 1998). Internal Debt of Pakistan in 1999 was 45.6 per cent of GDP and 289.1 per cent of its revenue receipts, as compared to Sri Lanka (45.7% & 264.8% respectively in 1998) and India (44.0% & 358.4% respectively in 1998). Same stupid team at works...

Point in case, Nawaz government was never outsetd for incompetence but inflexibility and uncompromising nature of NS....

More important question is why prices didn't come down when dollar was down.

Because how much of the consumption basket is comprised of imported items? Have you paid your fee to international body or purchased something from outside, you would immediately get relief by paying less than last September. But even for domestic imports the shopkeepers won't reduce the price unless new lot comes in at reduced price.

 

[SBD-3]

KSE index was hyper inflated and the way PML brought dollar down was through borrowing tons of $$. PMLN thinks only short term solutions so that they can take credit, which is why despite dollar going down inflation kept going up. You cant artificially control currency rates through loans. Also the recent loans are on really high interest rates the next government will face huge problems because of it.

This is simple economics and in economics you can always borrow for a short term solution but that only makes things work in long term. Which is why real economists are so angry with Ishaq Dar.

Do you know that how much the CDS spread+yields had gone on Mushrraf era bonds (the only internationally floated debt assets)? It was touching almost 16% (around 6% more than domestic yeilds). That meant that the benchmark for clean lending to Pakistan was at least 16% or more. The lower reserves automatically not only amplify sovereign risk of Pakistan but also the rush of demand for Dollar created a panic in the domestic market. Long term fixes are not erected overnight. The Eurobonds were issued at around 50-100 bps lower than the CDS spread+yield of already floating bonds. Short term fixes provide cushion for long term restructure.

KSE index was hyper inflated

KSE was hyper depressed in PPP regime due to extreme political volatility and lackluster economic performance. There were already news about market ending the year at 32000 had Azadi and Inqilab not ruined it.

 

[Echo_419]

Pakistan Muslim League (N) is yet again proving to be incompetent on the economic front. A bit of wind and the economy is in turmoil.

Well this can be the result of the,recent calls for civil disobedience

 

[Fracker]

Yeah right the last gov of mian shahib had collapsed Economically before musharraf takeover, now don't come blaming PTI/PAT for that and certainly not musharraf it was the doing of sharif bradaran maybe you should connect all the dots 97-99 poor performance of Gov.

@Chak Bamu @Fulcrum15 note the personal attack and objection on Title which i have not awarded to myself.

Golden question, if NS is responsible for all Economy Collapse, then why it happens when someone is forcing them out rather then when they are in?

Dollar reached 67 after big bang by Pakistan, but it reaches back to 55 till NS wasn't removed, and touched 60 in just 1 year of Musharaf.

It's a universal fact, whole world trust NS over others, which brings investment into the country, but anything disturbing NS bring instability in currency or stock exchange.

 

[nair]

I was watching Al Jazeera TV news, they were attributing this to the political turmoil..... This along with drop in sensex....

 

[VCheng]

I was watching Al Jazeera TV news, they were attributing this to the political turmoil..... This along with drop in sensex....

Political turmoil comes and goes in Pakistan. The basic issue remains that the country consumes more than it produces, and that is what creates the long term decline, averaging about 10% per year, of the PKR.

 

[tarrar]

First of all there was no miracle done by corrupt PML-N, Aid from KSA helped Pak currency to come up. This was meant to happen, it was only matter of time. The amount of corruption taking place in Pakistan is worse.

 

[Jazzbot]

Stop with your propaganda. Because of PTI/PAT, the stock exchange has resulted in lose of over $3 billion,

Losses worth Rs300 billion in KSE due to political turmoil: Ishaq Dar | Pakistan Today

Do some research, mr "analyst" then to go around and posting nonsense and baseless propaganda.

And govt was high at some Indian/Saudi/US crack for good 14 months, they never really cared about these things when they denied Justice to PTI and PAT. What was they thinking when they denied Justice to PTI and killed PAT workers in day light? Don't tell me they were expecting people to come up with rose petals and will bow down in front of them in respect after these crimes.

They always knew what was coming towards them, still they stick to their negligent policies. They denied Justice to the people of Pakistan. Now they are the one who should be responsible for all this mess.

 

[my2cents]

What is this hurry to derail an elected government?? Reforms takes years to take effect. Even Modi said the same that he would need at least eight years to show any meaningful results.