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Govt silently watches Pakistani rupee losing like anything

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ISLAMABAD: The apparently orphaned Pakistani rupee’s freefall persists without a respite as on Wednesday it traded as low as 109 against the US dollar in the open market, Geo News reported.

According to currency dealers, the rupee became volatile and exchanged at the lowest ever rate in the open market after incurring substantial losses.

On the other hand, in the interbank market the rupee ended weaker at 106.37/106.47 against the dollar, compared to Tuesday's close of 106.10/106.20. The rupee hit a rock bottom after a loss of Rs0.74, dealer added.

Pakistan’s currency surrendered the gains owing to the resurging demand of dollars.
“The rupee is likely to face pressure as the oil payments are due this week. The way the market is moving, we can see further depreciation of Pakistani currency down the line,” the dealers added.
The market is witnessing a shortage of the foreign exchange, creating panic in the foreign exchange market, said an analyst.

"The foreign exchange market expects $300 million disbursements from the coalition support fund by the end of this quarter, which will improve the foreign exchange reserves and the exchange rate as well", he added.

A day earlier, Pakistani currency traded at 106.95 for buying and 107.20 for selling in relation to the dollar in the kerb market.
Experts said the government was doing nothing to shore up the nose-diving rupee the consequences of which could be dire for the economy of Pakistan.

Govt silently watches Pakistani rupee losing like anything - thenews.com.pk



Dollar hits Rs108.1 in open market
State Bank becomes ‘silent spectator’



ISLAMABAD - Dollar value has reached the highest level in history as in open market it was selling above 108 rupees on Tuesday and economists feared that Pakistani rupee would remain under pressure in near term.

Market sources said that dollar rate has increased to Rs 108.1 in open market and Rs 106.25 in interbank. The dollar, which was around Rs 100 when Pakistan Muslim League-Nawaz (PML-N) took the charge of the government on June 5, is continuing its upward journey since last few months. There are different viewpoints on increasing dollar value, as some people are of the view that the government has made commitment with IMF to enhance dollar value while others believed that rupee is under pressure due to ‘speculations’.

However, finance ministry officials blamed speculations for the devaluation and said Pakistani rupee is likely to stabilize in near term, as government has finalized loan proposals of $625 million from private commercial banks to build the foreign exchange reserves. But economists believed that rupee would remain under pressure due to one or the other reason.

When contacted, renowned economist Dr Ashfaque Hassan Khan, who is currently serving as Dean NUST Business School (NBS), said that Pakistani rupee would remain under pressure owing to the IMF programme. He further said that government is acting desperately for dollars that is creating panic in market. “SBP has been asked to purchase foreign exchange from the inter-bank market, as in prior action, the SBP has purchased $125 million during two months of July and August”, he added. Dr Khan informed that limited purchase of dollars has destabilized the exchange market and the rupee lost its value.

Talking about loan proposals of $625 million from private commercial banks, he said this creates panic in the market and dollar reached Rs 108.1 in open market and Rs 106.25 in interbank.
Saqib Sherani, former advisor to finance ministry, has said that there are several reasons behind soaring dollar value against rupee that included speculations, repayment to IMF and central bank’s buying dollar from interbank. He was of the view that rupee would remain under pressure as Pakistan has to make huge repayment to IMF during the next few months.
Sherani further said that government’s $625 million loan arrangement with banks could provide temporary relief to the Pakistani rupee. “The gap is very wide, which can be filled through major inflow”, he added.

Dr Usman Mustafa from Pakistan Institute of Development Economic (PIDE) has termed the soaring dollar value against rupee a result of ‘hidden agreement’ with IMF. Talking to The Nation he said, “There are also several other reasons behind increasing dollar value against Pakistani rupee that included twin deficits (current account and fiscal deficits), repayment to IMF, investment in dollar against gold and upcoming Haj season”.
He informed that State Bank of Pakistan (SBP) had intervened in open market by controlling the dollar value to curtail its demand in past, which now has become silent spectator. He was of the view that IMF has asked the SBP to stay away from open market. Dr Usman noted that investors are now investing in dollar against gold, as gold prices are fluctuating.
Talking about the inflow of dollars, the said that situation would improve due to loan proposals of $ 625 million through private commercial banks, foreign and local, bringing resources. “The economic situation in general and rupee value in particular can improve with inflows of dollars in the country”, he concluded.
Dr Kaiser Bangali, eminent economist and former advisor to Chief Minister Sindh on planning and development, said that there is no short term solution to control the rupee deprecation against US dollar. “Rupee will remain under pressure when country’s imports enhance than exports”, he said and added that government should control its imports by using alternative measures.

http://www.nation.com.pk/pakistan-n...5-Sep-2013/dollar-hits-rs108-1-in-open-market
 
ISLAMABAD: The apparently orphaned Pakistani rupee’s freefall persists without a respite as on Wednesday it traded as low as 109 against the US dollar in the open market, Geo News reported.

According to currency dealers, the rupee became volatile and exchanged at the lowest ever rate in the open market after incurring substantial losses.

On the other hand, in the interbank market the rupee ended weaker at 106.37/106.47 against the dollar, compared to Tuesday's close of 106.10/106.20. The rupee hit a rock bottom after a loss of Rs0.74, dealer added.

Pakistan’s currency surrendered the gains owing to the resurging demand of dollars.
“The rupee is likely to face pressure as the oil payments are due this week. The way the market is moving, we can see further depreciation of Pakistani currency down the line,” the dealers added.
The market is witnessing a shortage of the foreign exchange, creating panic in the foreign exchange market, said an analyst.

"The foreign exchange market expects $300 million disbursements from the coalition support fund by the end of this quarter, which will improve the foreign exchange reserves and the exchange rate as well", he added.

A day earlier, Pakistani currency traded at 106.95 for buying and 107.20 for selling in relation to the dollar in the kerb market.
Experts said the government was doing nothing to shore up the nose-diving rupee the consequences of which could be dire for the economy of Pakistan.

Govt silently watches Pakistani rupee losing like anything - thenews.com.pk



Dollar hits Rs108.1 in open market
State Bank becomes ‘silent spectator’



ISLAMABAD - Dollar value has reached the highest level in history as in open market it was selling above 108 rupees on Tuesday and economists feared that Pakistani rupee would remain under pressure in near term.

Market sources said that dollar rate has increased to Rs 108.1 in open market and Rs 106.25 in interbank. The dollar, which was around Rs 100 when Pakistan Muslim League-Nawaz (PML-N) took the charge of the government on June 5, is continuing its upward journey since last few months. There are different viewpoints on increasing dollar value, as some people are of the view that the government has made commitment with IMF to enhance dollar value while others believed that rupee is under pressure due to ‘speculations’.

However, finance ministry officials blamed speculations for the devaluation and said Pakistani rupee is likely to stabilize in near term, as government has finalized loan proposals of $625 million from private commercial banks to build the foreign exchange reserves. But economists believed that rupee would remain under pressure due to one or the other reason.

When contacted, renowned economist Dr Ashfaque Hassan Khan, who is currently serving as Dean NUST Business School (NBS), said that Pakistani rupee would remain under pressure owing to the IMF programme. He further said that government is acting desperately for dollars that is creating panic in market. “SBP has been asked to purchase foreign exchange from the inter-bank market, as in prior action, the SBP has purchased $125 million during two months of July and August”, he added. Dr Khan informed that limited purchase of dollars has destabilized the exchange market and the rupee lost its value.

Talking about loan proposals of $625 million from private commercial banks, he said this creates panic in the market and dollar reached Rs 108.1 in open market and Rs 106.25 in interbank.
Saqib Sherani, former advisor to finance ministry, has said that there are several reasons behind soaring dollar value against rupee that included speculations, repayment to IMF and central bank’s buying dollar from interbank. He was of the view that rupee would remain under pressure as Pakistan has to make huge repayment to IMF during the next few months.
Sherani further said that government’s $625 million loan arrangement with banks could provide temporary relief to the Pakistani rupee. “The gap is very wide, which can be filled through major inflow”, he added.

Dr Usman Mustafa from Pakistan Institute of Development Economic (PIDE) has termed the soaring dollar value against rupee a result of ‘hidden agreement’ with IMF. Talking to The Nation he said, “There are also several other reasons behind increasing dollar value against Pakistani rupee that included twin deficits (current account and fiscal deficits), repayment to IMF, investment in dollar against gold and upcoming Haj season”.
He informed that State Bank of Pakistan (SBP) had intervened in open market by controlling the dollar value to curtail its demand in past, which now has become silent spectator. He was of the view that IMF has asked the SBP to stay away from open market. Dr Usman noted that investors are now investing in dollar against gold, as gold prices are fluctuating.
Talking about the inflow of dollars, the said that situation would improve due to loan proposals of $ 625 million through private commercial banks, foreign and local, bringing resources. “The economic situation in general and rupee value in particular can improve with inflows of dollars in the country”, he concluded.
Dr Kaiser Bangali, eminent economist and former advisor to Chief Minister Sindh on planning and development, said that there is no short term solution to control the rupee deprecation against US dollar. “Rupee will remain under pressure when country’s imports enhance than exports”, he said and added that government should control its imports by using alternative measures.

Dollar hits Rs108.1 in open market




Economic situation in Pakistan(some facts and figures):





in yesterdays program of Malik on dunya news the economic experts told that the agreement done with imf will decrease vale of rupee to 1 $= 125 rupees



60% Pakistanis face food problems due to price hike it amounts to 12 crore people


8 crore people in Pakistan are below poverty line


due to dollar hike in present governments tenure from 98 to 108 our loans Pakistan's loan has increased to 680 billion rupees thats roughly 6 billion us dollar and dollar will hike to 1$=125rs as told earlier


Present government has taken loan of 804 billion rupees thats 7.4 billion us dollar


Electricity 1 unit price has jumped from 6 rupess to 18 rupees


In last 40 days 138 people have committed suicide due to poverty



800 billion rupees printed in 3 months while last ppp government printed 500 billion rupees in last 1 year of their tenure



last ppp government average 3 percent growth for 5 years due to imf agreement for next 5 years it will average 3 percent growth meaning lost decade for economic growth for Pakistan



VERY IMPORTANT TO UNDERSTAND:



when countries money gets devalued their imports bill increase as in case of Pakistan biggest import bill is of oil in $$$

now what government say to try to justify devaluation is that our export bill will increase so in the end we will equalize what we lost in import bill


which is a fraud


export bill increase for only the orders in hand that already done deal but new orders will be in new currency value rate and cost of production will increase to produce the same products in Pakistan so advantage disappears


Acording to Dr Qaisar Bangali Economic expert and former economic adviser to sindh government(see program at 12:00)





IMF agreement is written in the language which only a business education person can understand .according to the expert from nust university the professor said even a first year business student can tell that rupee will decrease to 1$=125rs after reading current IMF and Pakistan government loan agreement

document is public but no common man can understand business gibberish




Kindly see the program to know disaster economic situation in Pakistan​




see the program below:




Watch Dunya @ 8 with Malick


Kiya Hukumaat Logo Ki Soch Rahi Hai Ya IMF Ki Sun Rahi Hai?


24th September 2013




Guests:


Dean of NUST business school and former economic adviser to government Dr Ashfaq Hassan sb

Dr Qaisar Bangali Economic expert and former economic adviser to sindh government

Asad umer member national assembly pti

Dr Muftah Ismail representing Pmln

Malik Muhammad Bostan Chairman exchange company Pakistan








@Leader @Jazzbot @chauvunist @RangerPK @Slav Defence @mafiya @Peaceful Civilian @ice_man @Side-Winder @jaibi @ajpirzada
@W.11 @jehanzeb.akhtar@********** @Spring Onion @Alpha1 @Side-Winder @F.O.X @forcetrip @Bilal587 @Zarvan

@M-48 @LoveIcon @Zarvan @Icewolf @Pakistanisage @SUPARCO @A.Rafay @Patriots

@Patriots @Marshmallow
 
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so whats wrong? Ishaq Dar is the finance minister. he has his training in accounting not economics. now expect a gud rise in inflation over next few months. such drastic fall in the exchange rate will allow us to import inflation by making imported raw material more expansive. anyone who wants to hoard oil, please do it rit now. it will make you really gud money in few months.
@pkuser2k12 most importantly, all the circular debt was paid by asking the SBP to print money. that was equivalent to more than 300 bn rupees. and this was done in the first 15 days of the PML-N government.
 
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and i just cannot understand IMF and their fascination with devaluation. it is different for the developed world. however, when we devalue, our international loan increases without any reason. costs of imports increase without any reason and so on. technically imports should decline after devaluation. but that is because people will stop demanding less of foreign goods and consume more of domestic goods. but the problem is that demand for many of the imported goods in countries like pakistan is very inelastic such as oil, food items etc. economic principles derived by studying the developed world cannot be replicated in the developing world.
 
india has got two good economists - one is the PM and the other is the head of their central bank - trying to handle their falling economy and even they are struggling at it. while we have got a chartered accountant as our finance minister and nawaz sharif as our PM. we have no leading economist in the fiscal department and moreover we have the audacity of dreaming of becoming an Asian Power.
 
@hussian009 i value ur opnion on ecnomic issues ...what is ur input ? is PML N ecnomic recovery strategy is good?
 
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so whats wrong? Ishaq Dar is the finance minister. he has his training in accounting not economics. now expect a gud rise in inflation over next few months. such drastic fall in the exchange rate will allow us to import inflation by making imported raw material more expansive. anyone who wants to hoard oil, please do it rit now. it will make you really gud money in few months.
@pkuser2k12 most importantly, all the circular debt was paid by asking the SBP to print money. that was equivalent to more than 300 bn rupees. and this was done in the first 15 days of the PML-N government.




when countries money gets devalued their imports bill increase as in case of Pakistan biggest import bill is of oil in $$$

now what government say to try to justify devaluation is that our export bill will increase so in the end we will equalize what we lost in import bill


which is a fraud


export bill increase for only the orders in hand that already done deal but new orders will be in new currency value rate and cost of production will increase to produce the same products in Pakistan so advantage disappears


Acording to Dr Qaisar Bangali Economic expert and former economic adviser to sindh government(see program at 12:00)
 
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Currency depreciation depends on CAD and some external & internal matters. What's the CAD of Pakistan?:undecided:
 
when countries money gets devalued their imports bill increase as in case of Pakistan biggest import bill is of oil in $$$

now what government say to try to justify devaluation is that our export bill will increase so in the end we will equalize what we lost in import bill


which is a fraud


export bill increase for only the orders in hand that already done deal but new orders will be in new currency value rate and cost of production will increase to produce the same products in Pakistan so advantage disappears


Acording to Dr Qaisar Bangali Economic expert and former economic adviser to sindh government(see program at 12:00)

theoretically exports do increase. the effect is called 'J curve' effect. (exports-imports) decrease initially and then start increasing. but our problem is different. this 'J curve' cannot really be applied to us. it assumes a normal functioning economy. we have got serious supply chain problems. international businesses are not putting orders with our industry because of the lack of certainty. energy shortages and terrorism has caused many international businesses to look for other suppliers who can grantee that the order gets delivered in time.
now coming back to the issue. even if our exports become cheaper, we will not see significant increase in orders due to the lack of confidence. on the other hand, price of imported raw material will go up and especially oil. that may well trigger another energy crisis and further deteriorate the business confidence.
all the economic solutions which should theoretically work for other countries do not work for us. and with no leading economist in the government, we end up in a very bad situation as there is no one to explain these basics to the IMF during negotiations.
 
Bass all we need are free laptops and scooties and we are happy to hell with the economy, eh? Bhugto ab.

They collect taxes from us middle class and distribute it free for vote-bank, to get voted into Govt by enticing the poor. Giving education and employment guarantee will work against them, so they are not bothered. Famous political clans in South Asia want to remain in power for next 100 years.
 
They collect taxes from us middle class and distribute it free for vote-bank, to get voted into Govt by enticing the poor. Giving education and employment guarantee will work against them, so they are not bothered. Famous political clans in South Asia want to remain in power for next 100 years.

What's sad is that they will.
 

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