Worst is over for Pakistan’s beleaguered economy: Umar

[A.A. Khan]

Public unease growing, anger and hatred now being directed towards Imran Khan himself.

 

[Yaseen1]

As you know better it is common economic cycle that when inflation increase labor demand high wages which will result industry owners to increase product price then again labor demand high wages and cycle continues if we devalue rupee against dollar beyond a limit it means our exporter is earning less profit in terms of dollar as compared to the exporter of other country which has more market share due to brand name and has high currency value than ours for example china or india as our exporter is selling products much cheaper than others having more market share due to their brand and good marketing

If someone defends a person ignoring all facts and figures than would it be wrong to assume that?
IMF will ask for corrective measures but if you dont do corrective messures you will bankrupt which is worse situation ...in that case rupee will have NO VALUE

Whu did this happwn?
Well ishrat hussain a technocart said that he couldnt sleep with CAD of 1 billion a year(beforw PMLN took over) which means a financing requirement of 5 billion dollars(PMLN took 7 b IMF fund) how are you going to handle 18 billion dollars CAD which is equal to 20 years of deficit EACH YEAR...

If we keep currwnt PMLN practice Pakistan would need 100 billion dollars ...is that even sane


Exports will not bece expensive as dollar has lost 25% valie..labour will be the same value uf increased by 25% which i doubt it would

 

[VCheng]

Finance Minister Asad Umar has said the worst is over for Pakistan’s beleaguered economy, which will turn around in the third year of the current government.

When did Mr. Umar develop the ability to look into the future?

 

[Zulfiqar]

We will have to wait and see.

Asad Umar just a few days ago ordered all the banks to pool up another PKR 40-50 B for loans to finance another tranche of circular debt receivables.

Conditions precedent are being finalized at the time.

It will be a tough ride for the time being.

 

[ziaulislam]

As you know better it is common economic cycle that when inflation increase labor demand high wages which will result industry owners to increase product price then again labor demand high wages and cycle continues if we devalue rupee against dollar beyond a limit it means our exporter is earning less profit in terms of dollar as compared to the exporter of other country which has more market share due to brand name and has high currency value than ours for example china or india as our exporter is selling products much cheaper than others having more market share due to their brand and good marketing

not necessary ..if you devalue and dont increase the minimum wage you will bring down the labour cost. This tactic has been used famously by china which did on purpose devaluation by buying too much dollars from the market hence its balloning reserves
Yes inflation will happen and poor will be miserable ..the inflation might not happen to the proportion of what you devalued as not everything is imported

This definitively slows down the imports and might cut off 1% GDP growth

Problem is flawed logic of trying to inflate GDP growth without reforms ...i pointed this out last year that the growth will not be sustainable ..this was repeatedly told by WB AB etc as CAD was out of control 2 years ago

 

[Yaseen1]

not necessary ..if you devalue and dont increase the minimum wage you will bring down the labour cost. This tactic has been used famously by china which did on purpose devaluation by buying too much dollars from the market hence its balloning reserves
Yes inflation will happen and poor will be miserable ..the inflation might not happen to the proportion of what you devalued as not everything is imported

This definitively slows down the imports and might cut off 1% GDP growth

Problem is flawed logic of trying to inflate GDP growth without reforms ...i pointed this out last year that the growth will not be sustainable ..this was repeatedly told by WB AB etc as CAD was out of control 2 years ago

you are right but extreme devaluation make fuel and industrial machinery more expensive as for country like ours which not manufacture such machines domestically and depends on imported fuel

 

[Bilal Khan (Quwa)]

you are right but extreme devaluation make fuel and industrial machinery more expensive as for country like ours which not manufacture such machines domestically and depends on imported fuel

For fuel, they can look at trying to forge bilateral, local currency deals with Venezuela and others beleaguered suppliers. They sell us gas in PKR, they buy our goods. It isn't a lot or ideal, but it might lower the cost of basic items there so it'd be worth a shot provided both sides have vision and courage.

 

[SuvarnaTeja]

Cat has 9 lives. Pakistan has 99 lives.

 

[Bossman]

Cat has 9 lives. Pakistan has 99 lives.

I see you are disapointed. Indians have been waiting for Pakistan’s demise since 1947. In fact that’s the gamble Nehru took and failed.Even creation of Bangladesh made us stronger. We don't have 99 lives, we are eternal.

 

[SuvarnaTeja]

I see you are disapointed.

If it makes you happy.

Indians have been waiting for Pakistan’s demise since 1947.

You can read minds.

In fact that’s the gamble Nehru took and failed.

How?

Even creation of Bangladesh made us stronger.

Agree.

We don't have 99 lives, we are eternal.

Meaning you are still following Sanaatana Dharma.

 

[nahtanbob]

When did Mr. Umar develop the ability to look into the future?

finance ministers have to forcast
it is part of their job

 

[Abdussamad]

If we keep currwnt PMLN practice Pakistan would need 100 billion dollars ...is that even sane

Hey man you should try reading what I'm saying. I've actually linked to a post where I criticized PMLN's performance but you ignored it entirely.

And I'm not against IMF program or the conditions that come with it. What I am against is Umar claiming the worst is over when the worst is yet to come.

 

[Imran Khan]

best of luck mr asad

 

[VCheng]

finance ministers have to forcast
it is part of their job

This is not a forecast, but an empty political boast, devoid of any foundation. Mr. Umar is reading from the same comic book used many times before in Pakistan's blighted financial history.

 

[Alpha BeeTee]

Let us hope so