I know 4 to 5 months ago everybody was complaining that the money and the dollar rate was a publicity stunt but 4 to 5 months on, the rate is still under 100 rupees.
US Dollar (USD) to Pakistani Rupee (PKR) exchange rate history
And as you can see it has stablized, which actually is good for the economy.
Re: Say what you will about PML they can handle basic economics
At the risk of sounding redundantly conflicting, our exchange rate IS artificially being kept low. Remember we have $550 million coming in every 3 months from IMF. That is more than enough to keep the rate in check.
Secondly, Pakistan's trade deficit has been at peak levels recently. April 2014 I believe recorded the second worst trade deficit in Pakistan's history (after Jan 2014),so not sure how the economy is benefiting from this 'stable' exchange rate. Our industrialists may be benefiting from lower import costs, but doesnt look like those benefits have been translated into shelf prices.
So to rephrase your thread title, Id say that 'Say what you will about PML they can manipulate basic economics'
Re: Say what you will about PML they can handle basic economics
So every country that receives money from the IMF has an artificial exchange rate?
Re: Say what you will about PML they can handle basic economics
So every country that receives money from the IMF has an artificial exchange rate?
Depends on the fiscal strength, and corruption level of that country. For a country like Pakistan, IMF comes in armed with a long list of pre-reqs....and none of our governments have been clean enough to be able to resist those requirements.
From what I know of the IMF agreement of last year, the govt was not able to negotiate on the interest rate. IMF asked for a 30% increase in domestic power tariff, and PMLN went the extra mile and increased it by almost 80%. IMF asked for increased taxation. PMLN went ahead and increased GST instead of broadening tax net. IMF asked for currency purchase, and State Bank promptly bought more than a hundred million dollars from the open market, creating an artificial dearth of USD, and spiking the rate to 108...the same rate which they are taking credit for having brought back down.
Re: Say what you will about PML they can handle basic economics
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Silaaj owning every Noonie since 1885 
Re: Say what you will about PML they can handle basic economics
Well the point of economic policy **is **to manipulate the economy, so you can’t argue with the premise that they understand it 
. You can play with taxation or interest rates (at the very basic levels). Now, whether or not the devaluation of the Rupee is good for Pakistan is another matter. I would imagine a stable rate may be good, but the fact that our exports are now more expensive with the lower rate, will hurt the economy and increase our trade deficit.
Re: Say what you will about PML they can handle basic economics
Lol what does a currency’s value have anything to do with the economy?Japan’s currency is much weaker than India’s but that doesn’t make india a better place to live.
The Indonesians and Sri Lankans got a weaker currency than us but their economy is growing at a faster rate.
Re: Say what you will about PML they can handle basic economics
Okay seems this is an economic lesson thread again.
Silaaj lets take some basic facts and move from there.
Now based on that would you say that Iceland, Ireland and Greece all artificially affected their exchange rates for a 4 to 5 year period?
All three EU countries have taken an IMF loan in the past 5 years. More so if getting funding from the IMF means you are artificially affecting your exchange rate, then over 50% of the worlds exchange rates have been affected in the past 20 years.
And two word for those of you complaining about a stable exchange rate: Energy imports. Now if you want to know why stable exchange rates are important for products with an inelastic demand (in the case of Pakistan) like energy imports, we will need a text book.
Re: Say what you will about PML they can handle basic economics
Okay seems this is an economic lesson thread again.
Silaaj lets take some basic facts and move from there.
Getting an IMF loan signals problems. Agreed. But countries with strong industrial or manufacturing backgrounds are able to negotiate the terms in order to suit their needs. Because such countries no doubt have other options when it comes to getting loans.
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Now based on that would you say that Iceland, Ireland and Greece all artificially affected their exchange rates for a 4 to 5 year period?
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I dont know about Iceland, but Ireland and Greece are part of the eurozone. Euro was kept from crashing by major US, French and German intervention. All 3 had invested heavily in greek bonds, and taking a write off would have been big.
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More so if getting funding from the IMF means you are artificially affecting your exchange rate, then over 50% of the worlds exchange rates have been affected in the past 20 years.
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IMF has lent to about 40 odd countries, less than a quarter of the worlds countries. And its not so outrageous to think that 40 exchange rates have been manipulated.
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And two word for those of you complaining about a stable exchange rate: Energy imports. Now if you want to know why stable exchange rates are important for products with an inelastic demand (in the case of Pakistan) like energy imports, we will need a text book.
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Noones disagreeing with that assertion. But in my first post, I noted the fact that we have yet to see the fruits of that 'stability' translated on the shelf. PKR has appreciated more than 10%, yet oil prices have only gone down by 2%. Even after factoring in the increase in international crude prices, Pakistan should have been benefiting from the currency valuation.
Re: Say what you will about PML they can handle basic economics
So you basically are asserting that the moment you take a loan from the IMF you are artificially adjusting your exchange rate? And do you mean to state that every time you take a loan be it ADB, IMF, WB or borrowing money from a country, you artificially adjust your exchange rate?
Iceland had a huge economic melt down a la Greece where their banks defaulted but the country didn't go bankrupt (unlike Greece).
As for benefits, vis a vis energy imports, while the price has gone down and the stability in the exchange rate has provided some relief. You would agree 105/106 to a dollar vs 98/99 to a dollar provides some benefit to our balance of payments correct?
Re: Say what you will about PML they can handle basic economics
zafra:
Confessions of an Economic Hit Man: John Perkins: 9780452287082: Amazon.com: Books
Re: Say what you will about PML they can handle basic economics
Brilliant book. I read it a few years ago, don’t agree with everything he says though as some of it does not work in the realm of fact. But its an interesting read nonetheless.
Re: Say what you will about PML they can handle basic economics
PTIsimpltons and their logic, not even worth a reply.
Re: Say what you will about PML they can handle basic economics
At the time Dollar was bullish, there was one so-called brilliant guy who stood up in Assembly and 'Exposed" govt deal with IMF to take Dollar on 127 or 128.. he said it on the floor of the house and panic took over the market.. the dollar which was on 106 or 107 went on 112 or more i guess... but then.. it slide back to 100... guess who the brilliant person was??? yeah you guessed it right he is Asad Omer of PTI... who like his leader dont know what to say in public and what not to say...
Re: Say what you will about PML they can handle basic economics
So according to Noonie tard due to Asad umar the rate of the dollar has climbed up
lulz](http://www.paklinks.com/gs/usertag.php?do=list&action=hash&hash=Lulz)
Just like Ganjas even their supporters have lost their minds
Re: Say what you will about PML they can handle basic economics
So you basically are asserting that the moment you take a loan from the IMF you are artificially adjusting your exchange rate? And do you mean to state that every time you take a loan be it ADB, IMF, WB or borrowing money from a country, you artificially adjust your exchange rate?
Iceland had a huge economic melt down a la Greece where their banks defaulted but the country didn't go bankrupt (unlike Greece).
As for benefits, vis a vis energy imports, while the price has gone down and the stability in the exchange rate has provided some relief. You would agree 105/106 to a dollar vs 98/99 to a dollar provides some benefit to our balance of payments correct?
I have said it in my previous posts. Strong manufacturing and industrial sectors allow countries to prevent currency manipulation. PKR is not traded on any international forex market, so manipulating its rate is a piece of cake for our governments. Think back to what PMLN did with the rate back in 1999.
And again, yes, improvement in the exchange rate has provided benefit to our balance of payments. I already agreed on that. But that benefit has not been passed on to the public. That is my main point. The govt is still intent of only benefiting the small percentage of rich and famous.
It amuses me when party stooges like yourself come out and make statements based on what they heard Abid Sher Ali say in a talk show, or what they read on some crappy fly by night faceboo page. Did you even bother to listen to Asad Umar's speech on the house floor in which he supposedly made the so called prediction of a 127 rupee dollar?
Asad Umar QUOTED, not predicted, QUOTED IMF's assessment report, in which IMF stated that the implicit value of the dollar AT THE END OF THE LOAN TERM has been taken as 127, owing to the average 8% annual devaluation of PKR. The same night, our finance ministry removed the IMF agreement and assessment report from the finance ministry website, because they were caught with their pants down. But Im sure these docs can be found somewhere in cyberspace.
But of course you can always go to 'i hate imran', or 'sharif got plugs' facebook pages, and read stuff that pleases you.
Re: Say what you will about PML they can handle basic economics
It amuses me when party stooges like yourself come out and make statements based on what they heard Abid Sher Ali say in a talk show, or what they read on some crappy fly by night faceboo page. Did you even bother to listen to Asad Umar's speech on the house floor in which he supposedly made the so called prediction of a 127 rupee dollar?
Asad Umar QUOTED, not predicted, QUOTED IMF's assessment report, in which IMF stated that the implicit value of the dollar AT THE END OF THE LOAN TERM has been taken as 127, owing to the average 8% annual devaluation of PKR. The same night, our finance ministry removed the IMF agreement and assessment report from the finance ministry website, because they were caught with their pants down. But Im sure these docs can be found somewhere in cyberspace.
But of course you can always go to 'i hate imran', or 'sharif got plugs' facebook pages, and read stuff that pleases you.
Surprised to see that blind cult followers calling other stooges... now listen this for good buster... i have got all the alphabet keys on the key board here as well, now whatever bakwaas your 2nd in command god asad umer is doing during that speech, he clearly said the dollar is going to reach 127 figure...
Now IMF dictation and world bank bakwas you or your idiotic leaders are upto.... you yourself is saying that govt dropped it... now i know cult followers as yourself have no brains to analyze anything... once a agreement signed with IMF, backing off would make you pay through your arse... i am sure leaders of PTI who all have highest degree in name calling and allegations won't be able to say that the agreement has signed and later govt terminated it.. because IMF agreements cannot be terminated that easily over a speech of a Fertilzer-Chor...
Mind your language while addressing me next time... the things/language you call/use at your home cannot be called/used at decent forums like these.. got it.. or you need me to speak in your national language
PS: i have always ignored your comments and posts... rarely have quoted you or replied as i do not believe in talking directly to cult follower.
Re: Say what you will about PML they can handle basic economics
Why attempt a diversion from the fact that they are criminals, corrupt, and murderers.
Re: Say what you will about PML they can handle basic economics
At the time Dollar was bullish, there was one so-called brilliant guy who stood up in Assembly and 'Exposed" govt deal with IMF to take Dollar on 127 or 128.. he said it on the floor of the house and panic took over the market.. the dollar which was on 106 or 107 went on 112 or more i guess... but then.. it slide back to 100... guess who the brilliant person was??? yeah you guessed it right he is Asad Omer of PTI... who like his leader dont know what to say in public and what not to say...
This has to be "Post of the Week" on Gupshup, Asad Umar being held responsible for rising $ :) lol and you obviously prefer Ishaq $ar to Asad Umar, don't you? no wonder we have such a strong economy today.
When it comes to economy, one of the key things that come to mind is "Foreign investment" and we have kings of foreign investment ruling the country i.e. Sharifs & Ishaq $ar. Wish they had invested in Pakistan as much as they have in UK, Turkey, Gulf states, Oceania etc
Say what you will about PML they can handle basic economics
How is that helping the people of Pakistan who actually need the government support? It really doesn't matter if a dollar is worth 95 or 100 rupees cuz it's not like the people of Pakistan are benefiting from it.