Ten questions

[blueazure]

Government started a massive devaluation drive in the name of increasing exports without having an industrial base or plan to do so. They expected that this devaluation will make labour cheap and it will lower the cost of Goods for exports thus reducing CAD . They brought down CAD down but actually by decreasing imports rather than increasing exports (causing GDP to shrink). As we are not self sufficient and still have to import a lot of goods so the prices of those goods are going up thus increasing the cost of living, cost of raw material and things like electricity , gas , water , transport. This has created a ripple effect where the relative prices of other goods are also going up due to devaluation thus causing inflation, plus the blunders which they have committed is making it worse for the country sugar mafia + flour mafia. To make it short somebody has to pay for that devaluation and without increasing exports the people of pakistan are paying it in shape of decreased purchasing power. The interesting part is that this has also lead to decrease in revenue for the government in absolute terms and increased government borrowing thus making the situation even more worse.

But the economic experts who came down from mars to this country want to make us believe that the recovery from this situation itself actually is development. Its like you lost five rupees and earned two after that, and you claim that you have fixed the problem and we are developing. We need to make our own economic policy catering specifically to our problems and needs. When one import economic policies and implement it as it is thats what the results are. Its a classic case of economic mismanagement.

yes.

some genuis advised PM IK ( who has no knowledge of on ground facts) to devalue PKR to 155 and exports would shoot up the same percentage

what we have = a barely 3 percent rise in exports and a 14 percent record hi inflation




and here comes the PTI lynch mobs with their expletives and maa bahn ki galliyaan

 

[Gorgin Khan]

Can you quote me a single reputable text that shows currency manipulation creates exports..
Its productivity that does..
Did you even listen to your self?
How does devaluation make you export kinnow or bananas or computers?
May be you can magically create pajamas but what about small enginer products...

Devlaution might decrease labour costs and thus attrack investors who still wont come untill other issues are settled so its long term ploy short term it does nothing


I lived in pakistan..basically the educated class wants to keep the country poor so than have 5 maids to work at home..so they themselve get subsidies and let the poor people die of hunger
So 30% population doesnt has electricity, 80% doesnt has gas but u spend 90% subsidy in these two things ..you allow iphone,land cruisers but poor people pay high taxes on food..
You subsidy petrol but food no...you subisize gas but LPG (which poor people use) no...
You give benazir income support program to rich when they are caught they are allowed to walk free no punishment ..

Basically pakistan is a country where they invite u to do corruption because if u r caught the worst case senrio will be ...u will walk feee..best case senrio u will get a promotion


Never mind
You are right
We should devalue further to get exports up

I wonder why mr sharif didnt do it
Seems IK was a genious..
I never knew you are IK supporter

Parh likh lo samaj a jayegi zulaikha mard thi keh aurat..... Parhna lazim hay pehlay.

yes.

some genuis advised PM IK ( who has no knowledge of on ground facts) to devalue PKR to 155 and exports would shoot up the same percentage

what we have = a barely 3 percent rise in exports and a 14 percent record hi inflation

and here comes the PTI lynch mobs with their expletives and maa bahn ki galliyaan

What else they can do if they dont do this. Kaam kay na kaaj kay dushman anaj kay. They are still living in their hypothetical world Jahan injection say hoorain dikhti hain , Sukoon qabar may ata hay aur interview ajkal sirf ghareeb logon ka hota hay aur riyasate madeena gayi tail lenay. Oyee kon log hain ye...

 

[darksider]

yes.

some genuis advised PM IK ( who has no knowledge of on ground facts) to devalue PKR to 155 and exports would shoot up the same percentage

what we have = a barely 3 percent rise in exports and a 14 percent record hi inflation




and here comes the PTI lynch mobs with their expletives and maa bahn ki galliyaan

What we have for export with high prices of electricity and gas?
I think businessmen and big agricultural land owners should not get key government ministries or control on policies making.
What we see in wheat crisis or in sugar price hike.
They will do what ever theu want to get easy money.thier greed for money have no bounds.
Our economy is controlled by mafias who dont care about country and people.
And our gov have no courage to take action against these mafias.because these mafias become part of every government.no matter who formed the gov.

 

[Silicon0000]

https://www.thenews.com.pk/print/621814-ten-questions

Ten questions

Dr Farrukh Saleem

First question: The Monthly Review on Price Indices by the Pakistan Bureau of Statistics (PBS) states that over the past 12 months the prices of ‘perishable food items’ have gone by a hefty 78 percent. Can the government please explain why the prices of perishable food items have gone up an unprecedented 78 percent?

Question 2: The prices of ‘perishable food items’ in rural areas have gone up by 90 percent. Can the government please explain why the prices of perishable food items have gone up by 90 percent in rural areas?

Question 3: The government allowed the export of 470,322 tons of wheat (July-Jan 2018-19). Now the government has decided to import 500,000 tons of wheat. Why? The government allowed the export of 276,000 tons of sugar (July-Jan 2018-19). Now the government has decided to import 300,000 tons of sugar. Why?

Question 4: When the PML-N left, the price of flour was Rs44 a kilogram. Our honourable Minister of National Food Security and Research Makhdoom Khusro Bukhtiar told us that there is ‘sufficient wheat stock to meet all our needs’. Why did the price of flour go up to Rs70 a kilogram?

Question 5: Fourteen months ago, the price of sugar stood at Rs53 a kilogram. The price has since jumped to Rs80 a kilogram, a 50 percent increase. Why has the price jumped from Rs53 a kilogram to Rs80 per kilogram in the past fourteen months?

Question 6: The PTI’s manifesto under chapter 3 promised to “alleviate poverty across Pakistan”. For the record, over the past year, around 8 million Pakistanis have dropped below the line of poverty. Can the government please explain why that has happened?

Question 7: The PTI’s manifesto under chapter 4 had pledged to “create 10 million jobs and strengthen the labor market”. Over the past year, around a million Pakistanis have lost their jobs. Can the government please explain why that has happened?

Question 8: Over the past six weeks, the OPEC basket price has dropped from $71 a barrel to $54 a barrel, a 24 percent decline. Will the price of petrol and diesel now come down by around Rs20 a liter?

Question 9: The PTI’s manifesto released in 2018 had promised to “depoliticize and strengthen police”. Has the process of depoliticizing and strengthening of the police begun? If not, why not?

Question 10: Other promises made in chapter 4 of the manifesto include ‘reforming FBR, fixing Pakistan’s energy challenge, transforming key economic institutions and reforming government procurement (chapter 2)’. Would the government please share the progress?

The writer is a columnist based in Islamabad.

Email: farrukh15@hotmail.com Twitter: @saleemfarrukh

@Norwegian @Socra @Jungibaaz

One Word Answer to all ten questions i.e. "U-turn"

I like to phone a friend.

IMF please.

Good one

 

[CrazyZ]

What we have for export with high prices of electricity and gas?
I think businessmen and big agricultural land owners should not get key government ministries or control on policies making.
What we see in wheat crisis or in sugar price hike.
They will do what ever theu want to get easy money.thier greed for money have no bounds.
Our economy is controlled by mafias who dont care about country and people.
And our gov have no courage to take action against these mafias.because these mafias become part of every government.no matter who formed the gov.

Exporters should focus on efficiency and not subsidies. Japan was able to boost exports during the 1970's oil embargoes. Energy prices were crazy compared with today. They focused on efficiency.

I agree about the mafias. Many business men organize behind closed doors to keep prices high. I have seen it first hand.

 

[Nilgiri]

Idiot that wasn't the reason why Rs was devalued. It was done to massively curb imports

Yes. Essentially if you want to get technical, the price elasticity of (many) imports was lower than the price elasticity of exports (given investment, institution + business climate issues etc that mentioned by members here). This means imports took a decline far more than exports were helped by the same action....because every good is not the same "response" to price change (Esp forex sector given this is one more level above local economy).

Where there was inelasticity in the import, it gets passed along as inflation directly (say fuel) or indirectly (fuel-reliant activities and services that are feeders for large part of economy...i.e base "idling engine" inflation).

Where there was elasticity in the exports, it gets increased demand from outside counties, Pakistan saw some increase in textiles for example as @Meengla and I discussed elsewhere.

But overall the opposites were fairly dominant in the overall composition of the forces...at least in context of how Pakistan govt could respond to prevent (in basic reactionary way, with extra-institutional guidance/pressure like IMF) the BoP complete crisis that was coming up soon.

If anyone want to know what elastic or inelastic means....it just means not every good/service changes (in demand) to change in price in the same way/rate. Inelastic ones change very little (because say they are very important to lot of basic things like fuel)....elastic ones (less important or many competitive sourcing from inside) change very easily in comparison. This is of course demand side I am talking about, there is supply side as well.

@Socra @Jungibaaz @Chak Bamu @niaz @jaibi

 

[ziaulislam]

Parh likh lo samaj a jayegi zulaikha mard thi keh aurat..... Parhna lazim hay pehlay.




What else they can do if they dont do this. Kaam kay na kaaj kay dushman anaj kay. They are still living in their hypothetical world Jahan injection say hoorain dikhti hain , Sukoon qabar may ata hay aur interview ajkal sirf ghareeb logon ka hota hay aur riyasate madeena gayi tail lenay. Oyee kon log hain ye...

Indians would rather wish they were still part of Pakistan


Idiot that wasn't the reason why Rs was devalued. It was done to massively curb imports


Exports increase is long term. How much exports increase in your smart pmln govt?


Donkey brainless patwaris like you deserve that


Another brainless Patwari spotted

Hey do you have day job ?
If yed go on to work
If not earn some money on youtube channel

You need to understand issue isnt lack of knowledge here or understanding ...it is denial..
There is no cure for denial..

So u r not going to have a meaningul discussion if the one your talking is going to stick his neck in sand

 

[Norwegian]

Hey do you have day job ?
If yed go on to work
If not earn some money on youtube channel

You need to understand issue isnt lack of knowledge here or understanding ...it is denial..
There is no cure for denial..

So u r not going to have a meaningul discussion if the one your talking is going to stick his neck in sand

Don't debate with brainless patwaris. They deserve to be abused instead

 

[Sine Nomine]

Honestly there should not be such transfer of the problem to largely PKR-insulated products....since everything stays largely PKR-PKR based all along the chain (i.e no forex scarcity induced inflation by using lever of depreciation and having transfer of that through inelasticity of demand etc ).

This indicates a deeper problem....or that there is simply nothing PKR-insulated (of basic foodstuffs)...both of which are troubling. Its not like they are being exported (due to attractive price in foreign markets) to create shortage based inflation locally either.

It needs deeper study on the factors of production and localisation of these as far as possible.

People are greedy to the core.

 

[Chak Bamu]

Exporters should focus on efficiency and not subsidies. Japan was able to boost exports during the 1970's oil embargoes. Energy prices were crazy compared with today. They focused on efficiency.

I agree about the mafias. Many business men organize behind closed doors to keep prices high. I have seen it first hand.

Japanese, with their unique culture, were already primed for great gains when oil embargo hit the Western world. This happened because resource-constrained Japanese value efficiency & focus on life-cycle costs of products. I am not sure this applies to Pakistan at all. The Corollas & Accords made their reputations during early 80s, but it happened because of Japanese ethos, not something that just happened in a few years.

You are right about mafias. Governments come & go, but mafias, such as sugar cartel, stay and exploit. Can anyone guess how much JKT has made already?

Lolx , kehtay hain naqal kay liye bhi aqal ki zaroorat hay , Thank you for confirming and proving that genetic thieves cannot change there genes. They will remain thieves no matter how much they pretend . You guys are imposters hiding behind the name and flag of this country while eating and hollowing it from its base ... You are no better than a pimp and termite because you are doing both jobs simultaneously.

If you dont stop showing your background , Meray andar pakistani jaag jayega aur bohut bura hoga teray liye samaj ayi. Teri shalwar utar kar sir per bandhoon ga teray. Bol raha hoon marzi tumhari hay where you want to take this.

Insaniyat ki zaban samjho stick to the topic!!!!

Please mind your language. You may have a point, but it got lost in all the personal attacks.

Indians would rather wish they were still part of Pakistan


Idiot that wasn't the reason why Rs was devalued. It was done to massively curb imports


Exports increase is long term. How much exports increase in your smart pmln govt?


Donkey brainless patwaris like you deserve that


Another brainless Patwari spotted

Great logical points... Bravo.

Dude, PML-N knew that exports would not increase unless the severe energy short-fall was handled. If you have worked a single day in your life trying to export any value-added product from Pakistan, you would know this.

 

[Gorgin Khan]

Japanese, with their unique culture, were already primed for great gains when oil embargo hit the Western world. This happened because resource-constrained Japanese value efficiency & focus on life-cycle costs of products. I am not sure this applies to Pakistan at all. The Corollas & Accords made their reputations during early 80s, but it happened because of Japanese ethos, not something that just happened in a few years.

You are right about mafias. Governments come & go, but mafias, such as sugar cartel, stay and exploit. Can anyone guess how much JKT has made already?


Please mind your language. You may have a point, but it got lost in all the personal attacks.

He has no right to call me anything he want thats what when things get personal. He is openly speaking on forum to abuse people and you are telling me mind your language. Its upto you!

 

[Norwegian]

Dude, PML-N knew that exports would not increase unless the severe energy short-fall was handled.

That's why exports decreased 5 billion USD during PMLN regime

If you have worked a single day in your life trying to export any value-added product from Pakistan, you would know this.

Great. So now we have regions most expensive electricity and gas. All thanks to PMLN.

 

[Chak Bamu]

Dear @Nilgiri

You are trying to teach Economics & business to a small sample of nationalists who put party before country. I am not sure you would make most of these Aristotles understand much. Now coming more to the point of this thread:

Farrukh Saleem was a hero to all the PTI fan-boys when he would target PML-N government via his lop-sided analysis. He was able to secure some position after PTI got (s)elected to the government, but just one critical talk-show comment got him fired from his hard-earned position. Since then he has been on a vendetta, and it shows. I do not trust him or his numbers or his analysis. This happens when an 'analyst' has a personal agenda. I try to stay away from politics and (now also) Economics sections on PDF. While I applaud your efforts & your erudition that your bring in your posts, I do not find the energy to deal with all the bias, negativity, & name-calling that happens in these discussions. Having said that, I would not bother much with Farrukh Saleem. There are better & more credible folks out there who write about political economy of Pakistan.

That's why exports decreased 5 billion USD during PMLN regime


Great. So now we have regions most expensive electricity and gas. All thanks to PMLN.

If IK could become PM despite demonstrated acute lack of grey matter, then you can be a successful troll at least. You win, I lose. Have a nice day.

He has no right to call me anything he want thats what when things get personal. He is openly speaking on forum to abuse people and you are telling me mind your language. Its upto you!

My friend, you could respond to negativity, but with some class. He successfully brought you down to his level.

 

[StormBreaker]

https://www.thenews.com.pk/print/621814-ten-questions

Ten questions

Dr Farrukh Saleem

First question: The Monthly Review on Price Indices by the Pakistan Bureau of Statistics (PBS) states that over the past 12 months the prices of ‘perishable food items’ have gone by a hefty 78 percent. Can the government please explain why the prices of perishable food items have gone up an unprecedented 78 percent?

Question 2: The prices of ‘perishable food items’ in rural areas have gone up by 90 percent. Can the government please explain why the prices of perishable food items have gone up by 90 percent in rural areas?

Question 3: The government allowed the export of 470,322 tons of wheat (July-Jan 2018-19). Now the government has decided to import 500,000 tons of wheat. Why? The government allowed the export of 276,000 tons of sugar (July-Jan 2018-19). Now the government has decided to import 300,000 tons of sugar. Why?

Question 4: When the PML-N left, the price of flour was Rs44 a kilogram. Our honourable Minister of National Food Security and Research Makhdoom Khusro Bukhtiar told us that there is ‘sufficient wheat stock to meet all our needs’. Why did the price of flour go up to Rs70 a kilogram?

Question 5: Fourteen months ago, the price of sugar stood at Rs53 a kilogram. The price has since jumped to Rs80 a kilogram, a 50 percent increase. Why has the price jumped from Rs53 a kilogram to Rs80 per kilogram in the past fourteen months?

Question 6: The PTI’s manifesto under chapter 3 promised to “alleviate poverty across Pakistan”. For the record, over the past year, around 8 million Pakistanis have dropped below the line of poverty. Can the government please explain why that has happened?

Question 7: The PTI’s manifesto under chapter 4 had pledged to “create 10 million jobs and strengthen the labor market”. Over the past year, around a million Pakistanis have lost their jobs. Can the government please explain why that has happened?

Question 8: Over the past six weeks, the OPEC basket price has dropped from $71 a barrel to $54 a barrel, a 24 percent decline. Will the price of petrol and diesel now come down by around Rs20 a liter?

Question 9: The PTI’s manifesto released in 2018 had promised to “depoliticize and strengthen police”. Has the process of depoliticizing and strengthening of the police begun? If not, why not?

Question 10: Other promises made in chapter 4 of the manifesto include ‘reforming FBR, fixing Pakistan’s energy challenge, transforming key economic institutions and reforming government procurement (chapter 2)’. Would the government please share the progress?

The writer is a columnist based in Islamabad.

Email: farrukh15@hotmail.com Twitter: @saleemfarrukh

@Norwegian @Socra @Jungibaaz

Q9 and 10, especially 9 is what made me really sad and hopeless, that this government as well failed to depoliticize civil forces and strengthen them..
Bas baatein hi kar sakte hain sab log...

 

[Nilgiri]

Japanese

Bro, they worked very hard on certain things right from meiji period (while south asia suffered as captive colonial market for british) and it helped they were never conquered (and psychologically defeated) people....and set against each other in all kind of ways (we see this today still here). That is where the "bushido" samurai system was translated and harnessed into work ethic for example.

This means any oligarch systems they created in post WW2 arena had benefits of well educated population already + positive cooperation with well ambitioned/reasoned govt structures and institutions....rather than simply a power grab cartel in colonial heritage developing world. Check and balance was basically pretty good.

Direct comparison to our regional predicaments is thus only so relevant.

Dear @Nilgiri

You are trying to teach Economics & business to a small sample of nationalists who put party before country. I am not sure you would make most of these Aristotles understand much. Now coming more to the point of this thread:

Farrukh Saleem was a hero to all the PTI fan-boys when he would target PML-N government via his lop-sided analysis. He was able to secure some position after PTI got (s)elected to the government, but just one critical talk-show comment got him fired from his hard-earned position. Since then he has been on a vendetta, and it shows. I do not trust him or his numbers or his analysis. This happens when an 'analyst' has a personal agenda. I try to stay away from politics and (now also) Economics sections on PDF. While I applaud your efforts & your erudition that your bring in your posts, I do not find the energy to deal with all the bias, negativity, & name-calling that happens in these discussions. Having said that, I would not bother much with Farrukh Saleem. There are better & more credible folks out there who write about political economy of Pakistan.


If IK could become PM despite demonstrated acute lack of grey matter, then you can be a successful troll at least. You win, I lose. Have a nice day.


My friend, you could respond to negativity, but with some class. He successfully brought you down to his level.

People need to rise above the politics completely....this "patwari vs youthia" thing is what status quo powerbrokers want....and they benefit from it as they know how to chameleon, transition and adapt quite calmly to the blame-mobs they generated....simply they are sitting at highest levels, often officially outside politics altogether...you know how it goes (this is true even in developed world btw, just the sad impact on livelihoods is crushing in poorest countries).

I am not well versed with media personalities and journalists/writers etc of Pakistan that much.... so to me the names all mean nothing.....rather I look at perspective of message over messenger (even the if the messenger is some hypocrite....a clock is right twice a day etc). Even with people with agenda, the truth must be distilled and used for broader debate and analysis for there to be chance to get to root of the deep problems.

BTW, I just tag you so you can have a read (at your leisure)....in other thread-topics where I feel similarly to you, I simply ignore certain posters altogether (skip through, eyes glaze over etc).... prioritise replies or dont respond at all etc (but I do appreciate/read the good posters in the thread). Simply its not worth time to engage with some, so shut out as you feel like. Works like a charm for me.