Rupee plunges to 143.5 in open market

[Paul2]

A big downside of currency control for a nation is that when such control becomes unaffordable or stopped for other reasons, your FX rate becomes unpredictable for a long time because you can't control people's expectations when they were used to the idea that "govt will always bail out the currency" and get perplexed when it didn't.

What I see now is that a lot of people simple have no idea what is the natural low for the Pakistani rupee, and there is kind of a bank run going on. Those people will be buying USD until they know for sure that PKR will not fall lower.

The only thing that will fix this are strong market forces that will anchor the PKR.

 

[tkmd]

The beauty of IK was that he says the truth and thinks logically. He promised a new direction. But we don't see any new direction. Same old shit being tried again.

Why can't any of those morons say....we lost tens of billions when garment industry left Pakistan and went to Bangladesh. Lets build solar plants next to industrial areas, promise factory's free electricty/zero tax for 10 years and have a one stop shop for licensing. How do we pay for it? Shut down PIA. Just shut the shit down. Let AirBlue/AirSial etc pick up the slack. Let all those lazy bastards go home. They can apply for cleaner jobs in the garment factories that we subsidize. With such a cheap currency we will easily be able to outcompete vitenam/bangladesh etc for market share.

But that will never happen. Bc we don't have a tabdeeli oriented govt. We have an establishment oriented govt which means as long as GHQ gets its cut .... nothing will change.