Pakistan Rupee sinks on concerns over balance of payments

[Nothing]

If rupee is really weak, GOP should let it slide slowly. If they can control rates for such a long-term on borrowed money, they can definitely let it slide slowly and bring it to its natural level. This kind of fluctuation won't help the economy. Multinational companies might hurry to take their profit out before big correction and that will impact PKR negatively. I have seen trends where big outside investors have done so in Pakistan in past. Again majority imports which Pakistan is doing are for infrastructure and on capital goods. That will drive the cost of projects upwards. I can understand government kept Ruppe at an artificial level so they can borrow money easily and import cost stays in the limit.
Start putting a customs duty on all capital goods imported for CPEC. In corrupt setup, that kind of exemption always gets used for the wrong purpose. There is no end to end tracking of goods. This has happened earlier when goods were flowing in Afghanistan. Government loses tax and import kept increasing.
With 100% increase in past 2 years, did government is showing an increase in customs duty?
God knows how much corruption money went out in the name of fake/overvalued imports with no customs duty.
If I will say anything about CPEC, I will get digitally lynch on the forum, but I feel the government is using the emotional support of public behind CPEC and rich and powerful people are making money in both countries.
All these farce is making things going out of spiral with PKR.

 

[fitpOsitive]

Pakistan is dead, in nutshell. We know it...next please.

 

[bafxet]

Great gift of our Minister of Finance .

His son in Dubai

View attachment 460695

I can't figure why Ishaq Dar alone is to be blamed. Finance ministers like Shaukat Tareen, Shaukat Aziz, Sartaj Aziz everyone has tried but couldn't fix the economic problems of this country. Dar May not have been an ideal FM but is it not true that during his tenure the country's growth rate significantly improvement. The tax collections improved the size of economy expended.

 

[$@rJen]

Pakistan should bring its own version of GST

 

[BABA AGHORI]

What effect will this have on current loan payments?

The loan pressure increased by 5.5%. As Dollar reserves are in .7 billion in -ive, you need to spend more rupees to buy dollars for the repayment of the loans. This will further devalue rupee.

Pakistan should bring its own version of GST

Pakistan already have GST, and GST is no solution.
Corruption is where they need to nail it .. and nail it hard and today itself. Actually, there is no tomorrow.

 

[$@rJen]

Nawaz added whopping $35b to Pakistan’s debt
https://tribune.com.pk/story/1469896/nawaz-added-whopping-35b-pakistans-debt/

If he is unaware of this reality then should have fired from his job longtime ago.
Seems he is employee of world bank or imf rather a Pak finance minister.

Sir, it's not Nawaz's fault but at this current scenerio whoever sits on that chair will face almost the same Issue..

 

[Chak Bamu]

err! but your FM was reluctant to devalue rupee...

You are trying to teach someone here economics & logic? That is not going to end well. But carry on my friend.

 

[war&peace]

We sold many entities due to which flow of dollar is outward . It seems rupee will devalue further

Well now the eternally corrupt SKA baboon wants to sell PIA and PSM before his short tenure ends and we see mindless cheerleaders dancing with excitement over the rip off.

 

[Chak Bamu]

The experts disagree with even any possible export increase. And not only inflation will rise but it is going to affect many sectors like import bills, reserves which are already in the negative besides even defence sector

If by experts you mean Qaiser Bengali, then I think you might want to view some more opinions and evidence.

There is absolutely no reason why the exports would not improve with this devaluation. Anyone who says otherwise is either a charlatan or an interested party in willful propagation for foolish opinions. Exporters had been crying for a devaluation, which (in my view) would not have helped much even 2 years ago because of energy woes.

Alarmism over devaluation is totally misplaced. It was bound to happen - a question of when, not if.

Well now the eternally corrupt SKA baboon wants to sell PIA and PSM before his short tenure ends and we see mindless cheerleaders dancing with excitement over the rip off.

I would sink both PIA and PSM in the Arabian sea, if I could help it. Get a grip man. Do you think that taxpayers in Pakistan must continue propping up these sorry mistakes just because you do not understand the impact of these white elephants?

I can't figure why Ishaq Dar alone is to be blamed. Finance ministers like Shaukat Tareen, Shaukat Aziz, Sartaj Aziz everyone has tried but couldn't fix the economic problems of this country. Dar May not have been an ideal FM but is it not true that during his tenure the country's growth rate significantly improvement. The tax collections improved the size of economy expended.

Precious few here are interested in facts. The currency that gets things going is emotion, not analysis.

 

[Hallian_Khan]

will some nooni cheerleader defend this...? wsy ya b imran khan pa dal do

 

[Novice09]

What effect will this have on current loan payments?

If you have to repay in $ than you have to pay more.

I.e., you have to pay more pakistani rupees to buy $ to repay the loan...

 

[$@rJen]

If you have to repay in $ than you have to pay more.

I.e., you have to pay more pakistani rupees to buy $ to repay the loan...

Repayment to IMF starts from June i guess...

 

[bafxet]

Sir, it's not Nawaz's fault but at this current scenerio whoever sits on that chair will face almost the same Issue..

An information which incomplete is always dangerous.
Firstly the comparison of debit is made ad a percentage of GDP.
Secondly, for last 10 years the country was struggling at a poor growth rate of 2% to 3% which is now a decent 6 pct.

 

[Novice09]

Repayment to IMF starts from June i guess...

Well the bottomline is that Pakistani economy is in ICU and China is that ventilator which is keeping it alive at a very high cost which Pakistanis are not ready to understand... bcos they feel that China is the doctor who is doing it for Charity...

First they let US to use their territory for free now this will happen with China...

Terms and conditions of CPEC agreements are unclear... thats too in a democratic nation...

An information which incomplete is always dangerous.
Firstly the comparison of debit is made ad a percentage of GDP.
Secondly, for last 10 years the country was struggling at a poor growth rate of 2% to 3% which is now a decent 6 pct.

In India UPA was showing rosy picture of economy... but now the skeletons r coming out... bad loans nd NPAs etc...

 

[HAIDER]

Sir, it's not Nawaz's fault but at this current scenerio whoever sits on that chair will face almost the same Issue..

35 billion dollar loan and since 1947 to 2013 around 65 billion debt. Now imagine the mishandling the situation during Nawaz era. Oil prices hit lowest during his era. Even the Zardari era was much better and he handle the Pakistan economy very well, while Pakistan hit by terror attack on daily bases.