Re: Earnings optimism drives KSE’s assault on record highs
I think there is no direct relation between stock and currency rates. For increase in currency rates there should be positive economic growth, billions of dollars of investment by foreign countries and exports surpass the imports or if there is huge trade surplus. I think none of these factors are happening at the moment. Due to ‘maut ke saudagar’ factor, developed western countries will be reluctant for huge investments in Pakistan. The other major factor is billions of illegal money earned by people are converting and transferring to foreign countries to get immigration or spending in foreign country in real state or opening businesses, negatively affecting the foreign reserves in Pakistan, hence value of currency will go down and down, and unfortunately there will be no end to it.