Why everyone try to become economist. It is not Imran khan who decide the exchange rate. Its market forces. He just adopted market based system. Currency devaluated not because IK devalued it but because our current account deficit reached 19 billion. At such deficit if anyone wants to keep exchange rate constant then he has to issue foreign reserves which declined 2 third in last 9 months of pmln. Had IK government not adopted market based return we would have lost all of our reserves. Ask any economist keeping the exchange rate artificially high means subsidizing import v/s local manufacturing.
IK made the decision to adopt a market based approach in a market which can be manipulated by a single shark and in a country where people hoard foreign currency to protect their savings and in anticipation of earning a windfall. How can this be reasonable and why wasn't the lesson learnt by the end of his second year? The deficit had indeed reached historic heights in 2018 and it is the same case this year too, while we had massive payments related to CPEC and Military imports (submarines) in 2017-18, there is an excuse today for PTI too which is the Ukraine war and it's effect on Oil and Wheat; so would you blame the PTI for this year's massive CAD or accept that CAD is inevitable in certain circumstances? And please also enlighten me how many local production firms/industries were setup during PTI and which industry is now manufacturing locally which was not started by Dar?
There is a ratio called Reer. A country's stable exchange rate is at 100% REER or close to that. My above statement that rupee was overvalued can be verified from trend of REER on past few years. All the country wanted to grow local manufacturing keep REER below 100% be it Japan or China.
Yeah, I have been shredding the REER theory left, right and center with examples from Japan (REER at 70-80), China (REER at 120-140), India & Bangladesh which both have REER above 110. It is quite simple, when we needed to import industry and material to place a manufacturing platform (power plants, CPEC & Military imports) we needed a stronger Rupee which could have been devalued gradually AFTER establishing local industries for expensive products such as Vehicles & Machinery, Consumer Electronics (Computers, Laptops, Mobiles, LED's) and RAW material etc.
Regarding your claim that electricity is the reason my friend if someone is big enough to get export orders then he can afford generator and they were using it ... Be it gulahmed, al karam or any other big company. Electricity is one of the factor but not the prime factor. Prime factor was overvalued PKR making imports cheaper.
If the cost of business on Government provided power is Rs. 1, it is Rs. 5 on Gas based Generators and Rs. 15 on Diesel based generators; all of this has an impact on the cost of the finished product which will lose competitiveness with Indian and Bengali products precisely because of higher power generation cost. It is a pity you could not figure this out despite your eagerness for argument.
Miftah ismail kn his budget speech of 2018 in front of my agreed that ishaq dar did wrong by not devaluataion and if required he will do another round of devaluation. Second round of devaluation till range of 140 was done by technocrats of interim government even before imran khan. And then imran khan changed it to market based system in 2019 on IMF pressure as there were no reserves left by pmln.
PML left more reserves than PTI did when Imran Khan was kicked out of the office:
1. USD 8 Billion vs USD 4 Billion in NET Reserves
2. USD 8 Billion vs USD 11 Billion in Gross Reserves (including 3 Billion USD parked by Saudi Arabia on interest and USD 1.5 Billion by UAE and 2.5 Billion by China)
3. USD 15 Billion vs USD 17 Billion overall FOREX (including USD 7 Billion belonging to Commercial Banks vs USD 6 Billion belonging to Commercial Banks)
Taking at NET value, the USD belonging to Government when PML completed its tenure was USD 8 Billion whereas it was 4 Billion when Imran Khan was removed. This is the response to your comment on PML not leaving reserves, they left twice what Imran Khan and PTI left!
Building on, PML left PKR at around 115 and that was the extent of Miftah's devaluation in 1 year......11% which in Miftah's opinion was more than sufficient. PKR devaluation during caretaker regime is understandable as the mandate of the caretaker Government is very limited and it is not able to enter into debt relief measures and was only servicing debt and payments. Despite that, Imran Khan assumed office on 18th August 2018 on which date the
USD was trading at Rs. 122!!! From Rs. 122 to Rs. 186 it was all Imran Khan (10th April 2022) which makes it
a whopping 53% devaluation in PKR in under 4 years!!!
I don't understand why you are lying about things which can be proven with a simple google search!
Debt added by IK. Looz, did anyone of your comparative person run the economy by complete closure for months and partial lock downs for 2 years ? And still keeping people free from hunger suicide and still increasing gdp by 6%?... Our economy and loans are one of the lowest around the world in covid. Comparing it with other governments is comparing apple with oranges.
You are actually comparing the period of blessing for Pakistan in which our imports were much lower and exports actually increased because we refused to close down industry and continued production thereby providing import markets an extra option. There was absolutely no complete closure and even the partial lockdown was with working hours intact. I will not go into hunger and suicides because more suffering increased for the common man under PTI than for anyone else. And your response to addition of Rs. 20,000 Billion to our debt is a mere wave of the hand, you would have been calling for blood had it been under PML or PPP or even Establishment.
Land given to malik riaz ... Lolz in which year it was done ? And by which government ? Punjab government or kpk government? Are you really that stupid ?
Land given to Imran Khan and Bushra Khan by Malik Riaz worth Billions of Rupees and that too after NCA recovered money was gifted back to Malik Riaz as payment for Bahria Town fine to the Supreme Court of Pakistan! Are you really that big of an IGNORANT or a LIAR or perhaps BOTH??
Regarding gift of tosha khana yes he admitted that as it is as per law and its his allowed benefit. And all gifts are eventually sold to government officers at a fraction of price. He did all as per his remuneration policy. Dont we have bonuses in private sector or stock options ... Furthermore he also explained unlike your favourite chors he didnt clear his house at camp and saved tax money on reconstruction of house road. Which is responsibility of governement. Can u share one such example where even gift received is being used to save tax money for making road of his house ?
So it is perfectly fine for chindi chori and tucha pana of acquiring gifts given to the state by other heads of states at a fraction of their actual price only to sell them all in the open market at handsome revenue? This is the morality of Riyasat-e-Madina (pre-Islam infact!). Gifts are NOT sold to Government officers, it is actually a loophole of the system created by chors and used by chors. All state gifts should be open auctioned and proceeds deposited in the Government's kitty. And either a woefully and beautifully bullshit story of building roads or a tale of a PM who could not even provide funds to repair roads of his own constituency! Shameful and disgraceful!
Your favourite chor has 3 camp offices and wasted crore of rupees on just renovation of swimming pool ...
Dirty people like u deserves to be ruled by crooks pmln and ppp ... U dont understand abc of economics but try to behave like economic genius ...
Who have you assumed to be my favorite chor? It is most definitely Imran Khan, he is the biggest chor of them all and he is the smartest too. How beautifully he got his illegal construction at Bani Gala regularized within weeks of becoming PM and how he got the One Constitution Avenue Islamabad (Grand Hyatt???) regularized is just awesome.