Pakistani rupee firms to 136 per dollar

[CHACHA"G"]

Pakistan needs to reform deeply. Improve governance and reduce govt intervention into economy (by reducing excise duties on production and supply especially and the massive bureaucracy saddled to it).

This check valve exchange rate strategy is quite bad policy...it should be much more free float so the large pressure is not accumulated (and all the shocks that entails as @CHACHA"G" and @Major Sam mention)...because businesses work and plan with cash flow rather than cash shocks.

Past that, everything is basically some form of long term better+focused institutional development (where govt actually works)....its a basic narrative change from the earlier "govt must be involved in everything for greater good".

@VCheng @Chak Bamu @Indus Pakistan @Oscar

Pakistan need to fallow India and Malaysia style economy …….. we need made in Pakistan drive now ,... we need plant in Pakistan Drive …….. importing every thing hurting us …….
infect if we take out petrochemicals and then look at Pakistan import and export and then if we think for one moment all those importing items are made in Pakistan( mean no import) we are one hell of a economy..
This is the fact which Western looks at and say Pakistan will be to 25 in few decades .
I disagree if we work hard we can be in top 15 …………… Rest is all jealousy of westerns and propaganda of enemies of Pakistan and Corruption of Elite of Pakistan

 

[Chak Bamu]

A window of opportunity was missed last year to get some FDI when Pakistan's economy was being touted for having 5+% GDP growth. This was achieved by debt financing of infrastructure projects - especially Electricity generation plants. In its lust for power, PTI drummed corruption mantra and agitated for a fall of government. With its & TLP's agitational style of politics, the (promoted) instability scared away the investments and all the momentum built upon debt financing was lost. I am very bitter about the whole thing, especially how one institution did its best (actually worst) to promote instability to cement its grasp over government policies.

Enjoy the show folks. This is what lack of strategic direction & infighting looks like. Getting rid of Sharifs was a higher priority than Pakistan's growth & stability. So then enjoy the aftermath.

PTI partisans would find xyz excuses and repeat them infinite times - but that does not change the facts or improve the situation. Y'all got taken for a ride and took the rest of us down with yourselves. We older ones have seen enough and would wait for y'all to wisen up as time passes. However, another demagogue would rise in 20 years and when you are older and wiser, another generation raised up on sound-bytes would tell you to eff-off.

 

[VCheng]

Pakistan needs to reform deeply. Improve governance and reduce govt intervention into economy (by reducing excise duties on production and supply especially and the massive bureaucracy saddled to it).

This check valve exchange rate strategy is quite bad policy...it should be much more free float so the large pressure is not accumulated (and all the shocks that entails as @CHACHA"G" and @Major Sam mention)...because businesses work and plan with cash flow rather than cash shocks.

Past that, everything is basically some form of long term better+focused institutional development (where govt actually works)....its a basic narrative change from the earlier "govt must be involved in everything for greater good".

@VCheng @Chak Bamu @Indus Pakistan @Oscar

The tragedy of Pakistan is that everyone knows real changes are needed, and some even have an idea of what needs to be done, it is just that no one actually ever gets around to making the needed changes. It is like the famous British weather, which everyone talks about, but doesn't do anything about it.

 

[Nilgiri]

It is like the famous British weather, which everyone talks about, but doesn't do anything about it.

Well British weather can't be changed in the end tho heh. Pakistan is very changeable in comparison haha (at least I think so)...but yes it won't be easy.

 

[BATMAN]

Rupee Fell because of Oil. Period.
Please Educate yourself over Credit ratings and Growth. It will help.

Oil was most expensive during Musharraf rule and he bring brought down USD from 80 to 45

 

[Mage]

Pakistan need to fallow India and Malaysia style economy …….. we need made in Pakistan drive now ,... we need plant in Pakistan Drive …….. importing every thing hurting us …….

You need to increase manufacturing in your country and create a system that encourages production like tax breaks and other legal benefits for manufacturers.

 

[VCheng]

Well British weather can't be changed in the end tho heh. Pakistan is very changeable in comparison haha (at least I think so)...but yes it won't be easy.

I chose the example for good reasons, one of which you mention above.

 

[nahtanbob]

Furthermore which imports are they trying to 'demote'???? what percentage of of forex goes for their payment, make a list. Do it for Pakistan. Dil Dil Pakistan Jan Jan Imran Khan kay tattay.

Wouldn't edible oil be a top target for import substitution ? I am surprised Pakistan imports 1-2 billion dollars in edible oil

 

[Nilgiri]

Wouldn't edible oil be a top target for import substitution ? I am surprised Pakistan imports 1-2 billion dollars in edible oil

Oils take lot of space and resource to grow. Canada for example has huge amount of open prairie land so its easy to grow Canola (rapeseed) oil plant there.

But Pakistan the good arable land area is focused on crops like rice, wheat etc....lot of rest of the land is pastoral or barren and not suited to growing. It is probably easier and cheaper just to import palm oil from malaysia etc....and soya bean oil etc from world market.

 

[Nike]

Current account deficit is something plagued Indonesia too at certain extent, but the thing is Indonesia got extensive commodities to made up their export account balance more positive, and we got tight budget policy being enacted for decades . I think Pakistan need more prudent abount their economic situation, some unnecessary budget need to be slashed likes the military, gov. Energy subsidies, and infrastructure project in which needs more imports of capital goods for the continuation of their projects. The rest is to made privatitation of their soe, the most unproductive ones if needed