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Pakistani rupee trades at record low of 90.35 to dlr

In 1991-92 Pakistan rupees had more worth than Indian rupees, by 1995 both got Equal and now in 2011, it is about

1 INR = 1. 7 PKR.

In last 20 year Pakistani rupees have seen a big downfall.
 
you indians of all people should keep your pie-holes shut, considering your own economy is slowing down as well.....(as is the value of your currency)


currency valuation is only a tiny aspect when looking at a nation's economy, and the health of its economy.....the economy works in cycles. What Pakistan needs to do is put more emphasis on export led growth (our services industries are up to a reasonable standard ).

and hmmm gee whiz, with a devalued currency our exports become cheap....and as it is, some of our sectors have already recorded increased export revenues --and all this despite the fact that a good chunk of our industries arent even running at full capacity because our spineless government (which is only about empty talk and promises) can't even solve the supply-demand gap in energy production, resulting in needless power cuts.


LMAO @ bhartis who have no grasp of macroeconomics whatsoever, who claim blindly that Pakistan is on the verge of some kind of impending economic collapse ---and that without aid (which affectes barely 0.14 pc of Pakistan’s GDP growth) we will suddenly be doomed

first of all, Pakistan is a country that survived over a decade of being sanctioned and embargo'd to the teeth.....still the country survived and not only that, we were still capable of defending our country (much to your chargine)

second of all, I think i'll trust the words of Mr. Shahid J. Burki (former VP World Bank, former Finance Minister, and an internationally respected economist) over the words of a few obtuse indians on PDF who think they'd understand even the first thing about how the economy or international trade or finance work

Well the difference is even after a slowdown ..our growth rate is three times as much as yours.

Yes currency devaluation has positive effects on exports ..but this effect is highly overrated for example ..you currency has devalued by almost 70% in last 4 yrs..would care to guess out what is the percentage increase in your exports during the same period...inversely devaluation also has inflationary effect on the economy.

Economically Pakistan is in a bad shape ..though not yet on 2008 levels ..but unhindered it can regain those levels in a blink .. especially with SBA ending...time to return the $8 Billion to IMF arriving..those foreign reserves will be depleting fast.
 
Well the difference even after a slowdown is ..our growth rate is three times more that yours.

Yes currency devaluation has positive effects on exports ..but this effect is highly overrated for example ..you currency has devalued by almost 70% in last 4 yrs..would care to guess out what is the percentage increase in your exports during the same period...inversely devaluation also has inflationary effect on the economy.
Economically Pakistan is in a bad shape ..though not yet on 2008 levels ..but unhindered it can regain those levels in a blink .. especially with SBA ending...time to return the $8 Billion to IMF arriving..those foreign reserves will be depleting fast.
that is true. Pakistan vote for IK next time please
 
you indians of all people should keep your pie-holes shut
Personal Attacks are the last resort of the incompetent :lol:

, considering your own economy is slowing down as well.....(as is the value of your currency)
Sure.. our economy has slowed down to 7%.. When was the last time Pakistan managed to hit 7% (considering its a much smaller economy and hence can grow much faster).. Think it was 6 years back.. ;)



currency valuation is only a tiny aspect when looking at a nation's economy, and the health of its economy.....the economy works in cycles. What Pakistan needs to do is put more emphasis on export led growth (our services industries are up to a reasonable standard ).
No disagreement there.. Pakistan however has been stuck in a constant downward cycle in terms of growth..


LMAO @ bhartis who have no grasp of macroeconomics whatsoever, who claim blindly that Pakistan is on the verge of some kind of impending economic collapse ---and that without aid (which affectes barely 0.14 pc of Pakistan’s GDP growth) we will suddenly be doomed
Govt Aid should be compared to the Govt budget and not GDP.. All of GDP is not available for spending, but the aid is..

first of all, Pakistan is a country that survived over a decade of being sanctioned and embargo'd to the teeth.....still the country survived and not only that, we were still capable of defending our country (much to your chargine)
Past performance should not be taken as a guarantee for future results ;)


second of all, I think i'll trust the words of Mr. Shahid J. Burki (former VP World Bank, former Finance Minister, and an internationally respected economist) over the words of a few obtuse indians on PDF who think they'd understand even the first thing about how the economy or international trade or finance work

Personal attacks, incompetent .. etc etc..

anyway, take whoever's word you want to.. If you want you can go Riaz's blog site.. Its a strong Feel Good reading for every Pakistani feeling depressed about Pakistan's current state of affairs....:lol:
 
Come on dude..jaan aapna ghar main aag laga hota hai to dusro ko finger nahin dikhate hain....Indian currency is trading around 52~53 since almost a month....If i beleive correctly it is not expected to improve either....So being a so called economic super power if we can not control our currency then being a smaller economy than us how can you expect that Pakistan will control its currency???
 
the rupee has seen most of this de-valuation from 2008 till today --under the current government

when Gen. (r) Musharraf resigned, i THINK it was stable at around rs 58-60 / US$

now it's finally hit rs 90. . .


the currency valuation thing is tiny part of the story.....what really matters in Pakistan's case is its foreign exchange reserves position --which right now is fairly stable. We have enough forex to cover any major economic price shocks for the next few months

we were REALLY in crisis in mid 2008, when we were nearing total meltdown....the reserves was in a precarious situation --we only had enough forex to cover barely 2.5 months worth of imports (fuel being the main thing)....food prices and inflation was hitting the roof, as were shortages (including artificial shortages by a few greedy, criminal producers)


the status-quo is FAR from desirable; but people dont worry about ''sudden impending collapse'' or ''dooms day'' for Pakistan economy....and most certainly any talk of ''Pakistan will suffer if aid is cut off'' kind of crap need to check their facts and quit being petty victims of media perception-management.

in fact, cutoff in all aid is a good thing and any self-respecting Pakistani should demand accountability and should demand that other citizens pay their taxes.....that corruption is exposed and punished. that is what the country needs.......dont waste time worrying about rupee valuation because as is the case with commodities -- the currency valuation is based on supply/demand vis a vis the currency markets and it rests on other stuff like favourable current account balance (increase in exports of goods, serviices)


well, in the end let's hope that we elect capable officials and implement the right policies (domestic and external) that would drive economic growth in our beloved motherland

Pakistan’s forex reserves fall to $16.68 bln | Business | DAWN.COM

Why is there pressure on Pakistani rupee and its outlook? | Business | DAWN.COM

Some interesting tid bits from the 2 Paksitani articles..

Pakistan’s foreign exchange reserves fell to $16.68 billion in the week ending Dec. 2, compared with $16.88 billion in the previous week, the central bank said on Thursday.

Foreign exchange reserves hit a record $18.31 billion in the week ending July 30, but have since eased due to debt repayments.

“The fall in reserves is due to scheduled debt repayments,” said Syed Wasimuddin, chief spokesman for the central bank.

Islamabad must start repaying an $8 billion International Monetary Fund loan in early 2012. Without additional sources of revenue, its foreign exchange reserves will come under further pressure, analysts say.

With dwindling reserves, coupled with import payments, debt servicing and a lack of external aid, the pressure on the local currency is expected to continue.

Pakistan’s current account deficit for July-October widened to $1.555 billion, compared with $541 million in the same period last year

t can also lead to a balance of payments crisis, which is when a country does not have enough foreign exchange reserves to pay for imports and its debt repayments.


In 2012/13 it has to pay the IMF about $3.04 billion, 2013/14 $3.38 billion, 2014/15 $1.33 billion, and 2015/16 $61.2 million. These payments will balloon the current account deficit, which, coupled with the lack of external aid and rising imports, will likely depreciate the rupee further. (Your own newspapers do not share your view on external aid ;))

---------- Post added at 10:06 AM ---------- Previous post was at 10:04 AM ----------

^^^ Not only that but after 10 years of sanctions our defense industry looked relatively healthy and we were more self reliant in producing jf17, al khalid, al babur etc

None of the above were developed independently.. So its not self reliance.. just that Pakistan found another backer..
 
Daily Times - Leading News Resource of Pakistan

Pakistan needs int’l donors to escape C/A deficit

By Razi Syed

KARACHI: Pakistan will not come out from the current account deficit without going to international donors, experts said on Thursday. The deficit during July-September 2011 grew to $1.209 billion from $597 million in the same period last year, they added.

The move by Pakistan government to choose short-term gains over long-term economic stability is risky.

The total liquid foreign reserves held by the country stood at $16,678.9 million as of December 2, 2011.

Foreign reserves held by the State Bank of Pakistan stood at $12.86 billion while net foreign reserves held by banks (other than SBP) stood at $3.81 billion with total liquid foreign reserves to $16,67 billion.

The International Monetary Fund (IMF) loan repayments are also due to start from early next year but Federal Finance Minister Hafeez Shaikh said Pakistan would have no trouble repaying a loan of the IMF.

The two teams met in Dubai for Article IV consultations referring to annual talks the fund holds with each member government to assess the health of the economy from Nov 9-16, 2011.

The outcome of the meeting remained flat as the donors asked Pakistan to meet the demands laid down for the release of funds.

Pakistan had opted out of an extension of a three-year IMF $11 billion emergency loan programme. Pakistan asked the extension of the $11 billion loan programme and a new loan programme.

Pakistani officials repeated their request to the IMF officials to grant Pakistan two years grace period to pay back instalments of loans and principle amount by 2012.

The IMF has been steadfast on its stance and succeeded pressing Pakistan to meet its conditions for levying tax on the agriculture sector, enhance energy price and ensure implementation of general sales tax.

IMF had also indicated that the conditions for release of last tranche of $1.85 billion bailout package for Pakistan would be tougher, agriculture expert and Karachi Chamber of Commerce and Industry member Shakeel Ahmad said.

The IMF also put a proposal before the Pakistan that surplus cash crops would be kept under the IMF supervision, he added.

“This will be done in case Pakistan fails to follow the dictation of IMF for levying different type of taxes and increasing cost of utilities,” he added.

Pakistan will start paying $8 billion loan by 2012 and the process will continue till the next three years.

He said due to the continuous increase in energy prices, IMF agreed for releasing funds otherwise the donor would stop releasing remaining loan amount besides it was determined to start audit of the loans accounts.

The rulers on the behest of the IMF reviewed the domestic economy on many occasions by levying taxes and in case of failure the IMF would put tougher conditions for the release of loans, Ahmad maintained.

The IMF has also sought amendments to the State Bank of Pakistan’s act in order to provide the central bank with operational independence.

The IMF wants Pakistan to raise tax revenue from the present 10 percent of gross domestic product (GDP) to 15 percent by 2013, which is peril for our economy. The country’s foreign debt now stands at more than Rs 6,500 billion and in only two years 2008-09 alone, swelled to Rs 9,600 billion.

The country’s debt was recorded at Rs 10.890 trillion by August 2011 from Rs 5.799 trillion by March 2008, showing a net increase of Rs 5.091 trillion or 87.79 percent since formation of the current government.

As the government revenue is less than its expenditure, therefore borrowing of money from both sources would be a continuous phenomenon until revenue increases more than the expenditure.

The government was forced to intervene in the energy and commodity markets to keep prices from getting completely out of reach of the public. This burden of subsidies along with higher security-related expenditures exerted continuing pressure on the fiscal system and adjustment path was affected.
 
why we always see indians more concern about Pakistan than their own country?

i mean we know tht u guys r free & frustrated ppls & nothing have to do but still u guys should use ur free time in thinking about ur own country.......why so much obessed yr njoy life dont waste it on others u poor souls....
 
Mods will be at my throats fir saying this but they can't deny that Pakistani government is quite useless
 
Daily Times - Leading News Resource of Pakistan

Pakistan needs int’l donors to escape C/A deficit

By Razi Syed

KARACHI: Pakistan will not come out from the current account deficit without going to international donors, experts said on Thursday. The deficit during July-September 2011 grew to $1.209 billion from $597 million in the same period last year, they added.

The move by Pakistan government to choose short-term gains over long-term economic stability is risky.

The total liquid foreign reserves held by the country stood at $16,678.9 million as of December 2, 2011.

Foreign reserves held by the State Bank of Pakistan stood at $12.86 billion while net foreign reserves held by banks (other than SBP) stood at $3.81 billion with total liquid foreign reserves to $16,67 billion.

The International Monetary Fund (IMF) loan repayments are also due to start from early next year but Federal Finance Minister Hafeez Shaikh said Pakistan would have no trouble repaying a loan of the IMF.

The two teams met in Dubai for Article IV consultations referring to annual talks the fund holds with each member government to assess the health of the economy from Nov 9-16, 2011.

The outcome of the meeting remained flat as the donors asked Pakistan to meet the demands laid down for the release of funds.

Pakistan had opted out of an extension of a three-year IMF $11 billion emergency loan programme. Pakistan asked the extension of the $11 billion loan programme and a new loan programme.

Pakistani officials repeated their request to the IMF officials to grant Pakistan two years grace period to pay back instalments of loans and principle amount by 2012.

The IMF has been steadfast on its stance and succeeded pressing Pakistan to meet its conditions for levying tax on the agriculture sector, enhance energy price and ensure implementation of general sales tax.

IMF had also indicated that the conditions for release of last tranche of $1.85 billion bailout package for Pakistan would be tougher, agriculture expert and Karachi Chamber of Commerce and Industry member Shakeel Ahmad said.

The IMF also put a proposal before the Pakistan that surplus cash crops would be kept under the IMF supervision, he added.

“This will be done in case Pakistan fails to follow the dictation of IMF for levying different type of taxes and increasing cost of utilities,” he added.

Pakistan will start paying $8 billion loan by 2012 and the process will continue till the next three years.

He said due to the continuous increase in energy prices, IMF agreed for releasing funds otherwise the donor would stop releasing remaining loan amount besides it was determined to start audit of the loans accounts.

The rulers on the behest of the IMF reviewed the domestic economy on many occasions by levying taxes and in case of failure the IMF would put tougher conditions for the release of loans, Ahmad maintained.

The IMF has also sought amendments to the State Bank of Pakistan’s act in order to provide the central bank with operational independence.

The IMF wants Pakistan to raise tax revenue from the present 10 percent of gross domestic product (GDP) to 15 percent by 2013, which is peril for our economy. The country’s foreign debt now stands at more than Rs 6,500 billion and in only two years 2008-09 alone, swelled to Rs 9,600 billion.

The country’s debt was recorded at Rs 10.890 trillion by August 2011 from Rs 5.799 trillion by March 2008, showing a net increase of Rs 5.091 trillion or 87.79 percent since formation of the current government.

As the government revenue is less than its expenditure, therefore borrowing of money from both sources would be a continuous phenomenon until revenue increases more than the expenditure.

The government was forced to intervene in the energy and commodity markets to keep prices from getting completely out of reach of the public. This burden of subsidies along with higher security-related expenditures exerted continuing pressure on the fiscal system and adjustment path was affected.
There are some fundamental things that drive the exchange rate management. In exchange rate words "should" "can" "may" essentially translate into three different policy prospectives. Should SBP keep exchange rate stable? It certainly should but should also keep track of fundamental trends i.e. If PKR should fundamentally depriciate, it should allow it to depriciate since exchange rate can serve as automatic economic stabalizer.
Now the second question "Can SBP keep exchange rate stable?" Yes it can, but it comes at a cost i.e. Reserves depletion just consider the economy as a pot with a whole with water (USD) leaking out of it, and you have another pot of water (Fx Reserves). While you can keep the water level (Exchange rate) stable by transferring the water from other pot to the leaked pot but until the leak is not addressed, any such attempt will only lead to exhaustion of the other pot (FX Reserves). SBP has already has an experience lately 3 to 4 years ago. So while exchange rate stability is an essential policy goal, but the marginal cost of implementing this increases exponentially as the markets realize that Central Bank is loosing its room to manuver through FX reserves. To put the mechanisim simple, FX reserves can be considered as a a bazooka, Central bank may not use it but it does have a psychological effect on the market players that Central bank CAN ACT! keeping them away from type of speculation that we witnessed in 2006 when PKR suddenly jumped from 60 to 67-68 in a metter of weeks.
 
And between 1994-2001:

1 PKR = 1,000 AFN

but now:

1 AFN = 1.88 PKR
I think they redevised the currency when Karzai Government came in. But the question is "Does a stronger currency signify anything?". If Pakistani Government decide that 1PKR will be equal to 1000USD, it may declare this exchange rate but what will happen? a) Pakistani Exports will come essentialy to 0 b) The remittances flow will dry c) Imports will skyrocket leading to gigantic trade deficit and ultimately default. Essentially stronger currency does not signify anything, Just look at Japanese Yen and Korean Won. These countries dont like their currencies to get stronger since it hits their exports. A classic example is Swiss Franc, the recent unprecedented appriciation in CHF has destroyed the local industry and made it uncompetitive forcing SNB to cap the appriciation of CHF to 1.2USD at maximum. So essentiall two currencies are two different commodities with different underlying fundamentals and comparing them essentially yield nothing except self pleasure :)
 
And between 1994-2001:

1 PKR = 1,000 AFN

but now:

1 AFN = 1.88 PKR

some today rates

1.00 Afghani = 1.58801 Japanese yen


1.00 Afghani = 1.09239 Indian rupee

1.00 Afghani = 230.132 Iranian riyals

1.00 Afghani = 24.1329 Iraqi deennars

1.00 Afghani = 23.8183 South Korean Won

1.00 Afghani = 2.35648 Sri Lankan Rupee




soon Japanese Iranians and Indians will migrate to afghanistan for get the jobs in kabul kandhar economical hubs of asia :rofl:
 
I think they redevised the currency when Karzai Government came in. But the question is "Does a stronger currency signify anything?". If Pakistani Government decide that 1PKR will be equal to 1000USD, it may declare this exchange rate but what will happen? a) Pakistani Exports will come essentialy to 0 b) The remittances flow will dry c) Imports will skyrocket leading to gigantic trade deficit and ultimately default. Essentially stronger currency does not signify anything, Just look at Japanese Yen and Korean Won. These countries dont like their currencies to get stronger since it hits their exports. A classic example is Swiss Franc, the recent unprecedented appriciation in CHF has destroyed the local industry and made it uncompetitive forcing SNB to cap the appriciation of CHF to 1.2USD at maximum. So essentiall two currencies are two different commodities with different underlying fundamentals and comparing them essentially yield nothing except self pleasure :)

When did Afghanistan default because of the change in currency value? It didn't. That would mean according to your own logic that AFN has inherent strength in it to withhold at that level. Isn't it?
 
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