Say what you will about PML they can handle basic economics

[Silaaj]

Re: Say what you will about PML they can handle basic economics

@Zafra

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.

@hanibal

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…

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.