PLAN OF PTI GOVT AND BENEFITS OF RUPEE DEVALUATION.

[Shahzaz ud din]

PLAN OF PTI GOVT AND BENEFITS OF RUPEE DEVALUATION.

 

[Khalidr]

In simple words, the high value of the dollar is having a positive impact on exports while negative on imports, but in our case where the value of imports is higher than the exports such devaluation of Rupee is not in our favor. But one thing is for sure, this devaluation will surely prompt the businesses to increase their level of exports and find new opportunities to avail the benefits of such this currency conversion.

 

[litman]

pti and their logic. 21 gun salute.

 

[Counterpunch]

Oh come on. This can have a negative trigger impact on overall every good thing of the economy. If the aim is only to improve and encourage Exports, then there are tens of other more productive and sure shot ways to do it than this stupidity.

Ours is an import heavy economy and every Rupee increase in conversion is resulting in loss. Our payments to importers and lenders are in USD which will stay the same. While our budget is in PKR. Owing to lesser income from exports our earning primarily is from taxes collected which is in PKR too. This means we will have to allocate more PKRs in budget to pay off the same amount of USD now. This also means if (hypothetically) earlier 100,000 tax payers were providing for the payment of 10% of loan repayment, now we will have to either add more number of tax payers or collect more amount of money from the same number of tax payers. This is simply immediately transferring the burden to the masses

Not only is this squeezing the masses through more taxes but it is also directly impacting their purchasing power since in any import heavy economy general prices of goods will also increase along with the flight of USD (at least proportionately if not more)
And if the Govt. thinks it will just print more PKR to buy the USD and pay off debt then be ready for inflation (or hyper inflation God forbid)

 

[VCheng]

Dollar ki keemat "bharnay" key faiday tau theek hein mage dollar barhnay key kia faiday hein.

Urdu R.I.P.

 

[Musafir117]

WT

 

[shah_123]

The nation is already reaping the benefits of devaluation for the last one year.

 

[Fawadqasim1]

There are no benefits of devaluation. Period

 

[Reddington]

إِنَّا لِلّهِ وَإِنَّـا إِلَيْهِ رَاجِعُونَ
RIP logic..............

 

[Musafir117]

Free mein 625 Arab rupee ka karaz chadh geya and logic says all good lol.

 

[The Accountant]

By the way, how many of you are economists and have even slightest of idea how the currency valuation or debt valuation works?

If just by changing the valuation of your currency loan can be increased or decreased then why not to just appreciate the value of rupee?

I don't want to get into details but keeping the value of money at a lower level then what it should be keeps imports cheaper and as a result manufacturers in the country gets in trouble against imports. There is a reason that in past decade we saw such a big flow of imported products in our economy? Be it cars, consumer goods or any other item ...

By devaluation of dollar you are supporting your local manufacturer. The only problem will be with the fuel or other necessary items just as seeds, but in that case it will pushes us to look as local alternative just as Bio Gas, Commercial alochal, renewables and local coal.

 

[B.K.N]

Rupee devaluation isn't plan of PTI but condition of IMF

 

[The Accountant]

Rupee devaluation isn't plan of PTI but condition of IMF

Its not just the condition of IMF but is the right approach

 

[B.K.N]

Its not just the condition of IMF but is the right approach

Right or wrong is different thing
but wasn't plan of PTI

 

[H!TchHiker]

lol..just a disaster