Pakistan's Economy - News and Updates

[ghazi52]

.,.,.,

 

[blain2]

Why Pakistan's rupee has soared the most against the US dollar among global currencies​

Filip De Mott
Wed, October 18, 2023 at 7:42 PM EDT·2 min read
16

• The Pakistani rupee has become the top performer in global currency markets.
• It gained 8% from a record low in early September, after a government clampdown on illicit dollar trade.
• The currency's strength could bring some relief to Pakistan's inflation, which hit 31.4% year-on-year in September.

The Pakistani rupee has surged to the top of global currency markets, sharply increasing from a record low in early September.
The rupee has gained 8% since then, climbing from 307 against the dollar to 275. The rebound has made the rupee September's top global performer, based on LSEG data cited by CNBC.
According to a presentation from Indian lender HDFC Securities, the strong rebound stems from the Pakistani government's response to illicit dollar transactions.
"Pakistan's rupee was the top performer globally this month as a government crackdown on the illegal dollar trade helped reverse its fortunes," it said. "The rupee surged almost 6% in September, a remarkable feat as most currencies including the Thai baht and South Korean won tumbled against the dollar on speculation US interest-rates will stay elevated for longer."
Ahead of the clampdown, dollars were being bought and sold in informal markets, deteriorating the rupee exchange rate, local media reported.
This prompted Pakistan's Federal Investigation Agency to launch a raid on exchange companies throughout the state, closing down shops and arresting a number of those involved.
After the operation, demand for the rupee has returned, and Pakistani banks have reported growing remittances and increased inflows.
But the long-term prospects of the rupee's rally are largely uncertain, as Pakistan's underlying economic situation is shaky — the country is weighed down by substantial debt loads, it's GDP is estimated to contract for fiscal year 2023, and its foreign reserves have been depleting.
Meanwhile, Islamabad is grappling with multi-decade high in average headline inflation, which rose to 29.2% year-over-year in fiscal year 2023, the World Bank reported.
The inflation rate rose to 31.4% year-on-year in September, government data showed.
However, part of this was owed to currency weakness, potentially making the rupee's strength a welcome sight for the country's consumers.
Read the original article on Business Insider

Why Pakistan's rupee has soared the most against the US dollar among global currencies

The rupee gained 8% from a record low in September, as Pakistan's government launched a crackdown on illegal dollar trade in the country.

www.yahoo.com

 

[Jango]

Why Pakistan's rupee has soared the most against the US dollar among global currencies​

Filip De Mott
Wed, October 18, 2023 at 7:42 PM EDT·2 min read
16

• The Pakistani rupee has become the top performer in global currency markets.
• It gained 8% from a record low in early September, after a government clampdown on illicit dollar trade.
• The currency's strength could bring some relief to Pakistan's inflation, which hit 31.4% year-on-year in September.

The Pakistani rupee has surged to the top of global currency markets, sharply increasing from a record low in early September.
The rupee has gained 8% since then, climbing from 307 against the dollar to 275. The rebound has made the rupee September's top global performer, based on LSEG data cited by CNBC.
According to a presentation from Indian lender HDFC Securities, the strong rebound stems from the Pakistani government's response to illicit dollar transactions.
"Pakistan's rupee was the top performer globally this month as a government crackdown on the illegal dollar trade helped reverse its fortunes," it said. "The rupee surged almost 6% in September, a remarkable feat as most currencies including the Thai baht and South Korean won tumbled against the dollar on speculation US interest-rates will stay elevated for longer."
Ahead of the clampdown, dollars were being bought and sold in informal markets, deteriorating the rupee exchange rate, local media reported.
This prompted Pakistan's Federal Investigation Agency to launch a raid on exchange companies throughout the state, closing down shops and arresting a number of those involved.
After the operation, demand for the rupee has returned, and Pakistani banks have reported growing remittances and increased inflows.
But the long-term prospects of the rupee's rally are largely uncertain, as Pakistan's underlying economic situation is shaky — the country is weighed down by substantial debt loads, it's GDP is estimated to contract for fiscal year 2023, and its foreign reserves have been depleting.
Meanwhile, Islamabad is grappling with multi-decade high in average headline inflation, which rose to 29.2% year-over-year in fiscal year 2023, the World Bank reported.
The inflation rate rose to 31.4% year-on-year in September, government data showed.
However, part of this was owed to currency weakness, potentially making the rupee's strength a welcome sight for the country's consumers.
Read the original article on Business Insider

Why Pakistan's rupee has soared the most against the US dollar among global currencies

The rupee gained 8% from a record low in September, as Pakistan's government launched a crackdown on illegal dollar trade in the country.

www.yahoo.com

These state induced fluctuations and artificial stimuli are the reason we are in this mess, and the reason we will remain in this mess.

Let's hope some day we get sustainable economic policies rather than jugar.

 

[nahtanbob]

This is the real reason for Pakistan's Economic Woes

Pakistan continues to sink deeper into an ever-spiralling crisis that is entirely avoidable. There is a straightforward explanation for this: the military’s bloody-minded attitude. It has controlled every facet of life in the country and refuses to confine its activities to the primary role they are supposed to perform: protect the country’s borders. For the record, the military has failed miserably in fulfilling this primary responsibility.



Instead, it has barged into other domains for which it is totally unqualified. The mess that Pakistan faces today is the direct result of the military’s meddling in politics, economics, the judiciary and social spheres. It acts as an occupation army terrorizing people that dare to question its illegal intrusion in other spheres of life.



Pakistan’s latest bout of convulsion began on April 9, 2022 when Imran Khan’s government was ousted from power through an army-engineered coup. This was demanded by the Americans because Imran Khan wanted to make Pakistan truly independent. After years of chaos and disruption, Imran Khan’s government was beginning to make some headway in economic and social spheres. There was absolutely no justification for his removal from power.



He had steered the country out of economic doldrums. People were beginning to feel optimistic after years of despondency and frustration. All the economic indicators were positive. More importantly, Imran Khan initiated social welfare programs that helped cushion the desperately poor to provide them some relief. For this “crime”, he is being hounded and kept in appalling conditions in jail on totally bogus charges.



After ousting him from prime minister, the army installed a bunch of criminals and murderers in power whose 17-month stint has been an unmitigated disaster. While they are gone, Pakistan’s woes continue to multiply. True to their troublesome meddling nature, the army continues to manipulate the political, economic and judicial systems from behind the scenes.



There is supposedly a “caretaker” government whose sole function, according to the constitution, is to hold elections within 90 days. Yet few people believe there will be elections any time soon. Instead, there are grave fears that the army plans to cling to power indefinitely. As part of this plot, it is trying to destroy all the political parties and create a single party that it will control directly.



The men in khaki indulge in such destabilizing actions because they think they know everything. They don’t. They are not very bright although they loathe to admit this. The only reason they are able to get away with their crimes is because they have the guns and tanks.

They were provided such weapons, at enormous expense and by sacrificing the well-being of the people, so that they would defend the country against external enemies. They have failed to do so. In every war against India, their performance has been dismal.

Unable to fight the external enemy, primarily India that has made enormous progress economically, the army has turned its guns against the people of Pakistan. The people are treated with disdain while the army hides in high-walled gated communities across the length and breadth of the country. Consuming enormous resources of state, the men in uniform demand even more.

Let us see what the army, or more specifically the top brass (generals and brigadiers), stand for. They are completely subservient to the US. Almost all of them have properties in the US, Canada, Europe or Australia. Their family members have foreign citizenship. The army is nothing more than a mercenary force available for hire.



Destruction of the economy over the last 17-18 months is complete. Exports have dwindled because industrial production has stopped. Foreign exchange reserves are non-existent. So, what do these smart men plan to do? Sell state assets as well as mines, minerals and agricultural land.



The plans they have announced are mindboggling. Early last month, the army chief, General Asim Munir went around meeting businessmen in different cities (also see here) announcing that $75-$100 billion worth of investment will flow into the country over the next three to five years. And where will these dollars come from? Saudi Arabia, the UAE and Qatar, of course, as the general informs us helpfully. Why would they throw money into a sinking hole? The Arab rulers are no fools.



Pakistan’s own Bill Gates (or whatever successful businessman you fancy), general Munir says he has convinced the Arab rulers (he used the words, “told them”!) to part with their money and invest in Pakistan. What is he offering them in return?



The general says that the Saudis have agreed to invest $10-$12 billion in the Reko Diq gold and copper mine in Baluchistan. They have also agreed to set up a $10 billion refinery in Gwadar. Further, general Munir has said that the Arabs will invest in developing land for agriculture purposes. The army will provide protection and guarantee security.



It is important to look at these grandiose plans past the general’s blinkered view. Even if the Arab rulers agree to invest such huge sums—a big if—it will take years to materialize. After all, the refinery project has been talked about since 2009 and nothing concrete has materialized. The Riko Deq mine development is similarly problematic.



Barrick Gold owns 50 percent of the shares while the federal and provincial governments in Pakistan own the other 50 percent split 30 to 20 percent respectively. Who will divest their shares to hand them over to the Saudis? True, the mine’s potential is supposed to be about $4 trillion. This is a huge amount but realizing this potential is a major challenge.



When Asif Zardari was the president—this is no joke, Pakistan has had this mega-thief as its president—he sold the Reko Diq mine for $6 billion to Barrick Gold. Of course, he received a hefty bribe. It was the then chief justice Iftikhar Chaudhry who stopped the deal. Barrick Gold sued Pakistan and was awarded $9 billion in damages, money the country did not have.



Under Imran Khan’s government, the deal was renegotiated and the fine was averted. It is now back to the negotiating table and new players want to get their cut. The elite in Pakistan never learn; they are beyond reform.



There are other disasters looming. Donald Blome, the American ambassador operates like a viceroy. The inferiority complex-stricken Pakistani elite cannot imagine life without American approval. Blome struts about the country not only meeting political leaders, he has also met the election commissioner as well as the chief of Punjab police. It is a notorious outfit operated by criminals and murderers. Blome’s meeting with the police chief was interpreted as a green signal to continue the rape and murder of innocent people.



He even visited the Gwadar port on September 12 and met businessmen as well as political leaders promising to invest in the area. Gwadar was developed by China as part of the China Pakistan Economic Corridor (CPEC). It is an important component of China’s Belt and Road Initiative (BRI), a trillion-dollar project that links most of West and Central Asia with Russia and Europe.

America wants to scuttle the BRI and CPEC. Unfortunately, the Pakistani generals are willing accomplices in this disruptive plan. They would rather destroy Pakistan than incur America’s displeasure.



China is Pakistan’s neighbour; America is 10,000 kms away. Islamabad’s experience shows that the US has always used Pakistan and then abandoned it. Why would it act any differently today?



So, why are Pakistani generals so desperate to repeat the same mistake again and again? Pakistan’ tragedy is that the generals cannot see beyond their noses. They only think of the here and now, not what will happen two or five years down the line. Their ill-conceived plans are inflicting enormous harm on ordinary people and leading the country toward destruction.

1. Pakistani army has protected their borders. Other than 1971 they have done their job
2. Explain how does BRI link Pakistan with Europe. You are assuming you can export more just because of land-based route. There is zero evidence for that. I won't get into all the issues behind land-based trading routes
3. If $4 trillion was truly available in Reko Diq mine companies would be lining up to extract them. I am not saying there are not any corrupt Pakistanis who is willing to sell for a few dollars

 

[Maula Jatt]

Fresh peak: KSE-100 crosses 55,000 after 1,130-point gain​

 

[AbdulQadir7]

Today, the Pakistan Stock Exchange (PSX)experienced fluctuations in its index. As of the latest updates:

• KSE 100 Index: Closed at 89,000 points, reflecting a decrease of 283.82 points or 0.33% for the day.
• Year-to-Date Performance: The index has increased by approximately 73.91% since the beginning of the year.

Key Market Indicators:​

• Trading Volume: The total turnover was around 263 million shares.
• Market Capitalization: The market capitalization stands at approximately 9.206 trillion PKR.

Notable Movements:​

• Some companies saw significant changes in their stock prices, with notable gainers and losers throughout the trading session.
• The market has been influenced by various factors, including recent economic indicators and investor sentiment regarding upcoming financial policies.

This performance reflects ongoing volatility in response to both domestic and international economic conditions.

https://twitter.com/x/status/1849385837454086280

 

[AbdulQadir7]

Information Minister Attaullah Tarar announced that Qatar has pledged to invest
$3 billion in Pakistan's economy during a news conference in Islamabad

 

[AbdulQadir7]

https://twitter.com/x/status/1854718312766488987

​

 

[AbdulQadir7]

The first direct cargo vessel from Karachi, Pakistan, has successfully arrived in Chittagong, Bangladesh, marking a significant milestone in bilateral trade relations between the two nations. This newly established maritime route is set to streamline supply chains, drastically reduce transit times, and open up fresh business opportunities by enhancing trade efficiency. The direct route is expected to strengthen economic ties, benefiting industries in both Pakistan and Bangladesh and fostering regional cooperation and growth.

https://twitter.com/x/status/1856738959017353288