PTI Gov injected $5.8 billion to keep the Rupee artificially strong

[Patriot forever]

4 pages in and still no answer to the original question....

I posted a very easy to understand answer.

PTI injected a total of $5 billion dollars that is true.

1st :
$3b in the initial phase of orderly gradual adaptation to market rate from 2018-2019.
Its called tapering off.
One can not just simply turn off the taps, it has to be done gradually and was done over a period of 6-8 months. If done suddenly this would have caused a significant damage, was done in a calculated way so businesses can adapt.
From $6b in 2018 was reduced to $3b and than stopped in 2019.


2nd:
The second injection of around $2b uptil date dollars came after August against unnatural outflow of currency to Afghanistan and speculation.

3rd:
PTI government bought around $3-4b as well from 2019 to 2021 to prevent the rupee from being overvalued.

The net injection by PTI is just around $2b in 3 1/2 years.


One has to be highly illiterate person to say that right now currency is overvalued by state Bank when in reality the currency is undervalued to a great degree.

Not even on one instance rupee has been overvalued in 3 1/2 years.

 

[SIPRA]

Cant see beyond this lol.

View attachment 808529

Mian has had only two objectives in his life: 1) To loot & plunder 2) To eat

 

[M. Sarmad]

There was NO Foreign Minister for most of their tenure and the reason for it is well known; powerful quarters wanted to handle the diplomacy themselves and hence PML was not allowed to post a Foreign Minister (whatever little tenure someone had at the post was mostly symbolic).

Quite the contrary, it was the Nalaiq Mian Nawaz Sharif who wanted to handle the diplomacy all by himself and therefore refused to appoint a foreign minister while keeping the (additional) portfolio himself as he believed (and stated proudly in private gatherings routinely while abusing the Army) that no one else (other than the mighty Nawaz) in that position would be able to handle the 'pressure' by the Mil establishment and will be cowed into submission by the army. This act of utter selfishness and stupidity by the self-centered monarch wannabe caused irreparable damage to Pakistan's international standing

 

[313ghazi]

I posted a very easy to understand answer.

Thanks, I didn't see that post amongst all the large diagrams and noise.

Would you say there were any similar justifications for PMLN's era of buying currency? Maybe one of their resident fanboys can explain.

 

[TNT]

Now doing same crap that ishaq dar did? Man this PM have literally licked his own spit every time. What a shameless incompetent moron.

 

[RoadRunner401]

I'm not a member of the PML-N party, nor a supporter of the party.

I have no love lost for PML-N.

Whenever some racist is caught the first word out of her/his mouth,"I am not racist my best friend is black"

I Am not PML_N fan, I just want PML_N back in power because they were so good for Pakistan and as a patriot its obvious choice, After Zardari (Mr 100%) left the Pakistani exports stood at $25 billion (fucking joke) good news at the end of PML_N they stood at $20 billion plus billions in extra debt, wow, what an achievement. Under Nawaz sheriff Pakistan economy was doing so well that his own sons left the country to followed by his finacnce minster to start a business somewhere else? Serving prime minister of Pakistan himself was investing in other nations while governing Pakistan...

No true patriot will want or ask for PML_N to come back, only paid goons or PML_N employees who were part of the theft and Indians are asking for PML_N to come back.

 

[Patriot forever]

Thanks, I didn't see that post amongst all the large diagrams and noise.

Would you say there were any similar justifications for PMLN's era of buying currency? Maybe one of their resident fanboys can explain.

To my understanding from financial point of view, they did it to balance off the 7trillion Rs they printed using SBP. If the rupee was not overvalued this 7 trillion printing by SBP would have opened flood gates of inflation. They made the imports cheap to increase the supply of products to increase consumption and ward of inflation to win elections at the cost of state of Pakistan.

The current government not only reversed the policy of artificial currency manipulation but also returned Rs1300 to SBP, but also had to deal with the flood gates of inflation when such detrimental policies were reversed to protect the long term financial viability of state.

Now doing same crap that ishaq dar did? Man this PM have literally licked his own spit every time. What a shameless incompetent moron.

Pkr is not overvalued in fact it is undervalued for the entirety of this government's tenure completely opposite to Dar. Please choose an another thread to vent out the frustration bro.

 

[RoadRunner401]

2019-2022: Indian annexation of IOK is good because PM Imran Khan gets to scream all over the world and no one cares.

Sorry, are you implying that from1947 to 2018 IOK was under Pakistani government control? And as soon as PM.Ik came to power he gave Territory to Indians?

Explain it to us all how newly elected Prime minister of a country with empty treasury can fight a war when even IMF isn't willing to lend you money because the previous corrupts have stolen or mortgaged everything in the country? Oh My Bad you can't explain any of that because you are not Fan of PML_N you are just their Mouth piece and agree with them 100%

 

[Norwegian]

Someone should tell this guy how great Imran Khan is

Jobless media worker who committed suicide laid to rest

Fahim Mughal, a jobless media worker who had committed suicide due to unemployment and inflation on Thursday night, was laid to rest on Friday.The father of six minor children was found hanged at a...

www.thenews.com.pk

Oh wait....but you didn't know cause you don't even live in Pakistan....so why sing praises of someone whom government you are completely clueless about?

Some random media worker is fired: Imran Khan responsible
This is how Patwari brain works. Whatever happens in Pakistan is Imran Khan's fault regardless of if had anything to do with the him or not

 

[Norwegian]

So is REER this relevant in our case; PKR is trading at 178 whereas INR is trading at 76 and Bangla Taka is trading at 85 so were we not already undervalued against our main competitors?

I already showed you how Musharraf govt also overvalued exchange rate causing CAD crisis in 2008 and thus devaluation when Zardari govt came. Same thing happened during Nawaz tenure. By overvalued exchange rate you subsidize importers at the cost of exporters. It may feel good in the short term but long term this policy always lead to forced devaluation and more suffering.

And then tell me, what would have been the point of a free floating PKR when we needed to import a damn lot more than export to establish industry and power plants?

If we are importing for export then exports should have increased with time as it did in Vietnam or Bangladesh. This has not happened. More imports have not led to more exports in Pakistan. That's the main problem

I too say the same thing, even though I still believe that CPEC has a lot of potential, I am baffled as to why it is not making us money already; by now it should have been raising 8-10 Billion USD annually. But CPEC is also the brainchild and child of whom?

Because CPEC was never properly planned to increase Pakistan's exports. Those who initiated CPEC projects were brainless idiots just like their supporters

CPEC is a gift to me from China, Nawaz told lawmakers

ISLAMABAD (Web Desk) - Prime Minister Nawaz Sharif has told lawmakers that the $46 billion China-Pakistan Economic Corridor (CPEC) project is a gift from

en.dailypakistan.com.pk

 

[Norwegian]

This is basic economics, how can one not understand such simple things.

CURRENT ACCOUNT IN 2017 AND 2018 IS DUE TO THESE INDEPENDENT POWER PLANTS IS THE MOST UNEDUCATED AND FLAWED ARGUMENT ONE CAN COME UP WITH.

But this is exactly the argument used by supporters of "you know who" to explain record imports of 2017-2018 was due to CPEC related imports
@muhammadhafeezmalik @FOOLS_NIGHTMARE @Tameem

 

[Patriot forever]

But this is exactly the argument used by supporters of "you know who" to explain record imports of 2017-2018 was due to CPEC related imports
@muhammadhafeezmalik @FOOLS_NIGHTMARE @Tameem

This is how propaganda works.

Everyone knows these companies took loans from Exim bank of China at favourable interest rates. Built and paid for power projects through that money and are earning hefty ROI.

Jahalat and democrcay if applied together leads to destruction of state, aur yehi Pakistan ka sab say bara masla hai, aur muqami chor and foreign powers take advantage of this to sudbue the state of Pakistan.

 

[HammerHead081]

Artificially propping up rupee atm is a necessity as long as our reserves dont significantly decrease. This propping up cannot in any way be compared to PMLN time when they did it, they absolutely emptied our reserves.

 

[Pakistan Space Agency]

OK...why did NS go against musharaf during the kargil war? Now you support of NS want us all to run and grab IOK but what did you do in 3 tenures ?? Slept...look ..Rob the nation.

The Indians can say what they like...the struggle in IOK continues. Has Pakistain not the upper hand by not saying anything about azad Kashmir and the northern areas ?
Dancing doesn't define strategy. Brain does.

Again, the lot of you are avoiding discussion of the main subject in the original post. Why?

 

[Pakistan Space Agency]

... I Am not PML_N fan, I just want PML_N back in power because they were so good for Pakistan ...

If i was a PML-N supporter, my debates with you and other PTI supporters would leave you with emotional scars for rest of your life. You'll be begging every Mod and Admin here to save you. Let's not go there.

Let's just discuss the reasons why the incompetent PTI Government has used $5.8 billion to keep the Rupee artificially strong.