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

[Wood]

PKR seems to have made significant gains in the past month. Is this because of state intervention or is this a natural increase in forex/trade balance?

 

[Pakistan Space Agency]

Sorry, are you implying that from1947 to 2018 IOK was under Pakistani government control? ...

I think you don't have the brains to understand the difference between occupation and annexation of a disputed territory and why neither Pakistan or India annexed their parts of Kashmir for seven-decades until a pathetic weakling wannabe Prime Ministe, Imran Khan took over the country.

 

[Norwegian]

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

You forgot his main objective: destroy morality of the nation

I think you don't have the brains to understand the difference between occupation and annexation of a disputed territory and why neither Pakistan or India annexed their parts of Kashmir for seven-decades until a pathetic weakling wannabe Prime Ministe, Imran Khan took over the country.

So if PM IK annex Azad Kashmir and Gilgit Baltistan into Pakistani territory, you would praise him since only PM in 74 years dared to do do that?

 

[Patriot forever]

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.

It the simplest of terms,

The rupee is actually undervalued not overvalued.

I hope that answers your question of rupee being artificially strong.

For the 1st part, yes bro you are a plmn supporter.

 

[Norwegian]

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

Friendly advice: Read the entire thread from the beginning before spitting Bughaz Imran

 

[Norwegian]

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.

Exactly. But despite this massive overvalued exchange rate, they still lost the election and the next govt was left to deal with their mess

 

[Trango Towers]

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

Because your main point is anti Pakistan government and pro nawaz shareef.
When u realign your mind to Pakistan as opposed to your party of choice of NS worship then we will be able to talk to you

 

[Patriot forever]

Because your main point is anti Pakistan government and pro nawaz shareef.
When u realign your mind to Pakistan as opposed to your party of choice of NS worship then we will be able to talk to you

The simplest answer is almost all the Indian members have become patwaris and hate IK.

Enuff said who is more pro Indian

 

[Pak Nationalist]

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.

As I said before and would reiterate "Mr. True Patriot", I have no love lost for PML-N. Talk substance. If that lot did not do right, neither has this one. Any country would see an increment in exports with massive devaluation backed by heavily subsidized exports (monetarily by the availability of cheap credit below the market rates and cheap power). Despite all that, it has to be a credit to this government that export volume (quantity of exports) is dwindling. As I said above, the value has increased due to high commodity prices worldwide which have increased our exports. Once the commodity prices begin slumping, so would the value of our exports in USD. From urea to petro products supply chain to LNG to crude import to power to steel to wheat to sugar, we have seen multiple crises in some instances under the same sector with alarming frequency. As I said before, maybe the 2007 PPP government was the only worst one in this regard. Interest groups, lobbies, mafias whatever you want to call them know they can rely on the incompetence and general ineptness of the incumbents to squeeze the public dry whenever they will, hence crisis after crisis with the sheer inability of the current dispensation to prevent these crises from emerging.

 

[Patriot forever]

As I said before and would reiterate "Mr. True Patriot", I have no love lost for PML-N. Talk substance. If that lot did not do right, neither has this one. Any country would see an increment in exports with massive devaluation backed by heavily subsidized exports (monetarily by the availability of cheap credit below the market rates and cheap power). Despite all that, it has to be a credit to this government that export volume (quantity of exports) is dwindling. As I said above, the value has increased due to high commodity prices worldwide which have increased our exports. Once the commodity prices begin slumping, so would the value of our exports in USD. From urea to petro products supply chain to LNG to crude import to power to steel to wheat to sugar, we have seen multiple crises in some instances under the same sector with alarming frequency. As I said before, maybe the 2007 PPP government was the only worst one in this regard. Interest groups, lobbies, mafias whatever you want to call them know they can rely on the incompetence and general ineptness of the incumbents to squeeze the public dry whenever they will, hence crisis after crisis with the sheer inability of the current dispensation to prevent these crises from emerging.

Bro this will answer your query.

This tables covers almost all major categories of our exports.

This whole debate was started on pbs data which only covers cotton yarn, cloth cloth etc and this was deliberately extrapolated to make this argument. The truth of the matter is we are exporting higher quantities of finished products.

Rest people have short memory, we have seen sugar, chicken, petrol, gas everything in all governments. Nothing new.

 

[Pak Nationalist]

Pakistan needs dollars by hook or crook. It can earn these dollars by increasing volume of exports or value of exports. Either way it will increase its export income. Since 2010 Pakistan's exports have remained stagnant under 30 billion dollars! Imagine that for ten years country's volume / value of exports didn't grow despite 5,6 percent gdp growth in 2018. In fact it fell to mere 20 billion dollars at one point. But you didn't take out incompetence card when this disaster was happening View attachment 808461

Oh, I did, but elsewhere. I was not a member of PDF. Dar obliterated Pakistani manufacturing, in practice de-industrializing the country because domestic production was expensive but imports were cheaper. The value increase is transitory, it would subside once the global commodity prices fall. What will we do then when our export volumes would be low as well as the value these earn? That you can process with ease. Remember that even now exports increased after massive government subsidies under the garb of covid stimulus. That stimulus overheated your economy when the structural issues were not addressed by the incumbents yet despite all the lip service. Whenever there is an artificial boom cycle in Pakistan, it leaves more misery behind than what Pakistan started with once the artificially pumped growth bubble bursts. This time was no exception. You got further devaluation of PKR, intense pressure on SBP held reserves that are dwindling each week (88 million USD this week), a high CAD, not to forget the torrent of inflation people are suffering with (high commodity prices are not the only factor, some wounds are self inflicted),

 

[Patriot forever]

Oh, I did, but elsewhere. I was not a member of PDF. Dar obliterated Pakistani manufacturing, in practice de-industrializing the country because domestic production was expensive but imports were cheaper. The value increase is transitory, it would subside once the global commodity prices fall. What will we do then when our export volumes would be low as well as the value these earn? That you can process with ease. Remember that even now exports increased after massive government subsidies under the garb of covid stimulus. That stimulus overheated your economy when the structural issues were not addressed by the incumbents yet despite all the lip service. Whenever there is an artificial boom cycle in Pakistan, it leaves more misery behind than what Pakistan started with once the artificially pumped growth bubble bursts. This time was no exception. You got further devaluation of PKR, intense pressure on SBP held reserves that are dwindling each week (88 million USD this week), a high CAD, not to forget the torrent of inflation people are suffering with (high commodity prices are not the only factor, some wounds are self inflicted),

I agree with many points made but not the intensity of it.

Exports will keep the momentum, from next year irrespective of international commodity prices our exports will maintain $2.5b to $3b.
The incentives were given in the form of various schemes but their is always a lag in their effect on ground. Most of the expansion will start showing itself in the coming months as we have only witnessed increased import of assorted machinery in the last 6-8 months. As I mentioned we are already seeing signs of value addition ( this also requires sufficient investment).

The SBP is loosing dollars mostly to fight of speculation in view of exporters holding dollars and IMF negotiations. Buying was also witnessed by SBP last month. Any large drop like the $300m odd seen a few weeks ago was due to external debt payment.

Once the IMF programme is firmly in place speculation will mostly die down.
Plus we are loosing almost $10m in the initial months to Afghanistan ( I can can say exactly how much it is at the moment but it is being reduced).

Pkr will come further strengthen in the coming months on its own as its highly undervalued right now as it has absorbed the most impact of CAD, without this single factor the impact of international commodity price inflation would have been far more devastating.

The pro growth incentives have all been rationalised.

The risk of either a boom or a bust is minimal.

Asfar as core inflation is concerned major portion of it is coming from energy prices, as a matter of fact FCA ( fuel cost adjustment) in electricity prices also g with base tariff ( IMF requirement) and petrol prices account for most of YoY increase. This happens when one is heavily dependant on imported fuels for power generation.

The ratio is 70% ( value) to 30% ( quantity) in increase in imports which is far larger than around 15-20% value factor for exports.

 

[Flight of falcon]

I avoid this space Jam kid like I stay away from COVID. His arguments and logics are very childish and expected from a patwari.

Some members keep harping about the volume is decreased but these gifted Patwaris have never heard of value added products/textiles.....Volume means nothing ...you can export a mund of cotton or one shirt....which one gives you more money?

What is their stupid obsession with the volume anyways???....

 

[JackTheRipper]

We will see at the end of fiscal year. You cant compare ppp time with pti huge difference is there. PPP didnt have to go to imf just after from first day with huge trade deficit gap.

Plus covid itself is a big factor taking away 1-2 year yet its side effects coming. Rise in demand of oil etc yet we manage to increase our exporte, remittance and revenue its not $45 billion but all together $31 billion of goods export and if we include services it would be around $35 billion. Remittance hitting $30 billion.

Yes, we are importing despite placing huge taxes. But I am sure it will balance out good.

Pti did what can be done trying increasing from pink salt to Basmati rice, growing olive oil to manufacturing mobile increasing income tax filer to fighting with all sort of mafis specially sugar and it came out mafis got support from court judges granting them stay orders.

Problem with pakistanis, first they let ppp and nawaz looted the country and now when $93 billion debt trap upon pakistan and ipps contracts and all sort of penalties on pakistan from rekodiq to turkey contract penalty. They want it fix by waving the magic wand. If you call pti incompetent then what you call pmln? below is the statistics

Govt issues was there also in pmln time from sugar to all sort. They didnt even had covid situation.

Inflation:

Sugar price in pmln time | By GeoSiasat | Facebook

Sugar price in pmln time

fb.watch

View attachment 808437

Exports:
View attachment 808435
Debt:
View attachment 808436

View attachment 808439

Debt Repayment:
View attachment 808440

Pti Debt repayment:

View attachment 808442


Lets see what would the final outcome at the end of the fiscal year for Pti.

Youthiya Logic ! Sara qasoor Jinnah ka hai, na Pakistan banata aur na mehngaye hoti,

Her cheez dk k daur mein double, triple rate per mil rahi hai..lol

 

[SIPRA]

What is their stupid obsession with the volume anyways???....

These people are the followers of a leader (NS), who can eat 2 kilo of mutton, with 3 Roghni Naans, in one sitting, and still space is there, for a few plates of "Gaajar ka Halwa". So, volume matters.