Exports decline despite subsidies, devaluation

[SHAH820]

https://timesofislamabad.com/09-May...to-hit-unprecedented-47-billion-in-fy-2018-19

This is what your Senate was told.

that could due to new agreement with china or so but nothing can be said wait for end result

 

[Crusher]

Assad Umar was too much simple minded and day dreamer, he was thinking that by merely devaluing the rupee agressivley pakistani exports will shoot out of the roof, but the export data for the last 9 months shows that how naive and stupid he was. Thank god Imran khan sacked him. It seems that pakistani exporters are one of the biggest haramkhors out there who are mostly using under-invoicing tactics probably through offshore companies that they have made in foreign countries.

 

[shah_123]

A margenal decline at what cost.
More than 40% of devaluation of currency
Aysee economy Tau may bhee Chala sakta hoon.

PTi youth is just like their leader Imran Khan, ignorant in economics matter. --- I kept hearing from youth in this forum that devaluation is good for us and will increase exports.

So the devaluation is here, where is the increase in exports -- their dull brains don't comprehend the fact that our industrial/manufacturing base is very weak, it will take years to sort out things. Like we need electricity and that also at reasonable rates (instead we increased rates under Imf dictation).

devaluation in our case will never make our exports cheap.--- devaluation means increase in cost of production as well -

Our ruling elite is compromised, they are traitors.

We are fast becoming like "dhobi ka kutta na ghar ka na ghat ka"-- means, on advice of some genius (buffoons), we decided to make our imports expensive + devaluation didn't resulted in the desired increase in exports ( reasons are self explanatory)

This has resulted in slowing down of economy, which means low revenue generation.--- to keep things working, govt will increase taxes and cost of utilities.

Imran Khan has quoted ibn Khaldun on numerous occasions in his Jalsas .--- someone convey to Khan, same ibn Khaldun says in his Muqaddama that increase in taxes creates unrest in the society and finally revolt.

 

[KhanBaba2]

that could due to new agreement with china or so but nothing can be said wait for end result

"Minister of State for Revenue Hammad Azhar told the House during Question Hour that exports have increased to 25 billion dollars and the government is committed to enhance them further to strengthen economy."

 

[Abdussamad]

Assad Umar was too much simple minded and day dreamer, he was thinking that by merely devaluing the rupee agressivley pakistani exports will shoot out of the roof, but the export data for the last 9 months shows that how naive and stupid he was. Thank god Imran khan sacked him. It seems that pakistani exporters are one of the biggest haramkhors out there who are mostly using under-invoicing tactics probably through offshore companies that they have made in foreign countries.

Underinvoicing is done by importers not exporters. Assad Umar pointed out the deindustrialization things I talked about earlier in this thread. He knew 30% devaluation alone wasn't enough.

PTi youth is just like their leader Imran Khan, ignorant in economics matter. --- I kept hearing from youth in this forum that devaluation is good for us and will increase exports.

Your generation is the one that mismanaged the economy and you are blaming the youth. Devaluation is necessary to make exports competitive which will spur investment and that will eventually increase exports. It won't happen overnight but not devaluing will ensure it never happens.

 

[Crusher]

Underinvoicing is done by importers not exporters. Assad Umar pointed out the deindustrialization things I talked about earlier in this thread. He knew 30% devaluation alone wasn't enough.

What if the same exporter has an offshore fake "importer" company which acts as the middle man between him and the end importe.

 

[Abdussamad]

What if the same exporter has an offshore fake "importer" company which acts as the middle man between him and the end importe.

That is the other country's problem not ours. Importers do underinvoicing so that they have to pay less custom duties. If a foreign importer is doing underinvoicing he is cheating the foreign country's tax authority not Pakistan's and it is non of our business.

 

[Fracker]

Underinvoicing is done by importers not exporters. Assad Umar pointed out the deindustrialization things I talked about earlier in this thread. He knew 30% devaluation alone wasn't enough.



Your generation is the one that mismanaged the economy and you are blaming the youth. Devaluation is necessary to make exports competitive which will spur investment and that will eventually increase exports. It won't happen overnight but not devaluing will ensure it never happens.

I am listening this BS days and Nights.

Devaluation can't increase the export but making more can neither it can fix economy but it will increase exchange deficit. It's basic mathematics even fools can guess if you devalue your currency your economy is going to shrink further. Your loans to be paid are increasing.

There is no overpriced or underpriced currencies, stable prices means more business and more investors .. devaluation will scare your foreign investors off... Since any investment in the country even if companies (where investors are investing) is profiting overall foreign investor will loose due to devaluation.

The worst thing which happens in the country is the Poor's became more poor.

I am sick of reading this BS in the forum. Please use your brain.

 

[Baburfromsarmarkand]

Governments don't produce anything. They can't export stuff. It's the local companies Pakistan does not have the work ethic to produce. Or the ingenuity. The east Asians with their discipline will always out compete us. Even south Korea beat us. Hong Kong got independence in 1997 from the British.
Its time to be objective.

 

[Abdussamad]

I am listening this BS days and Nights.

- Devaluation makes our exports cheaper for foreign consumers so that's why it increases exports in the long run.

- It would be nice to have a stable currency but we can't afford it. We don't have the dollars to keep our currency stable. So whether you like devaluation or not it has to happen.

- The foreign loan burden does increase but like I said we have no other option.

In case you haven't noticed the PTI government went running around like a headless chicken for 8 months looking for other options. It begged and borrowed dollars from all our allies and it was still not enough.

The worst thing which happens in the country is the Poor's became more poor.

The poor should learn to use contraceptives and learn to stop listening to mullahs who tell them not to use contraceptives.

 

[Fracker]

- Devaluation makes our exports cheaper for foreign consumers so that's why it increases exports in the long run.

- It would be nice to have a stable currency but we can't afford it. We don't have the dollars to keep our currency stable. So whether you like devaluation or not it has to happen.

- The foreign loan burden does increase but like I said we have no other option.

In case you haven't noticed the PTI government went running around like a headless chicken for 8 months looking for other options. It begged and borrowed dollars from all our allies and it was still not enough.

It can't, at the end due to devaluation the poverty in the country will go high, which force the exporter to pay more so his cost will increase and at the end he might loss more as compare to gains. Rest of the country will become further poor.

We had enough foreign reserves (15 billion dollars to be exact when PTI government was formed).

Money will never be enough unless you reduce your spending, reduce your imports, devaluation will scare off foreign investment which will.make sure you fall further. Business happens due to trust which all loss.

I sent some money to Pakistan in 2018, now when I calculated I lost thousands due to devaluation. So you think I will send again?

Same time there is no overpriced or underpriced currencies, you just need to keep enough foreign reserves to keep it up.

Also you need to remember, PPP when left the government rupee was 103 with only 8 billion reserves. How 15 billions are not enough for it now?

This headless chicken was due to they didn't even know how to run economy.

 

[VCheng]

Rest of the country will become further poor.

When a country consumes more than what it produces, increasing poverty is an unavoidable outcome.

 

[Fracker]

When a country consumes more than what it produces, increasing poverty is an unavoidable outcome.

Ohh please you can't avoid Putting one reason for another .

Here I am talking about devaluation impact on poverty. Which you can't deny which is why trying to escape with putting another reason. Grow up.

 

[shah_123]

Underinvoicing is done by importers not exporters. Assad Umar pointed out the deindustrialization things I talked about earlier in this thread. He knew 30% devaluation alone wasn't enough.



Your generation is the one that mismanaged the economy and you are blaming the youth. Devaluation is necessary to make exports competitive which will spur investment and that will eventually increase exports. It won't happen overnight but not devaluing will ensure it never happens.

I think get your facts straight, it's the ruling elite which has destroyed this country, nothing to do with my generation or youth. ---

Under invoicing is done because of exploitative/unfair taxation system -- I can assure that the day people start declaring 100% invoice value under the current barbaric taxation system, 100% import related businesses will close down ----

The container with X value goes to Dubai, gets fully declared, pays Y amount of taxes. Same container comes to Pakistan, not fully declared (under invoicing), pays 3Y amount of taxes.--- The problem is the governments which is governed by corrupts/traitors/donkeys/monkeys.

Our structure doesn't support export oriented business.-- criticism is easy, why don't provide the structure first?

 

[VCheng]

Ohh please you can't avoid Putting one reason for another .

Here I am talking about devaluation impact on poverty. Which you can't deny which is why trying to escape with putting another reason. Grow up.

It is clear as day to see: poverty levels will continue to go up. Devaluation is only one contributory factor, which also arises from the currency responding to the basic imbalance of more consumption than production.