Taste of new government on economical front

[Sa1eem]

Re: Taste of new government on economical front

@hanibal

^^ Dear Brother,

I am glad that u have realised the disaster Mush-led govt have brought on Pakistan.

Now u agreed on the fact that Dollar has been appreciated at 5.3% in last six months… believe by any mean, this new govt. has nothing to do with that fact, but yes u r rite, the previous govt. did this to increase the liability on Pakistan.. for some personal benefits or they were dumb enough to not to realise where this thing can lead to… i wonder what u were doing when previous govt. was in charge… it would have been lot more help if these numbers were presented in their govt… but i guess, like others,u are trying to put the dirt on the new govt…

Brother, what a comment :). Well, I have given you the exchange rate figures of previous government too. Do you think that keeping the exchange rate stable for so long was bad? Can’t you see that dollar was Rs 54 in 1999 and it was around Rs 60 in 2007. Is that bad currency exchange rate management along with accumulating huge foreign exchange reserves without increasing dollar debt or substantially increasing even total Pakistani debt?

Actually what I can clearly see is that, Pakistani rupee has not seen such stability in exchange rate since 1973 rupee turmoil what it has seen during PML(Q) government (2002-2007), along with huge accumulation of foreign exchange reserves, substantial decrease in debt to GDP ratio (from 110 percent in 1999 to 50 percent in 2007), external trade increasing from 17 billion dollars to around 50 billion dollars, stock market valuation increasing from less than 5 billion dollars to over 60 billion dollars, robust economy with over 7 percent real growth and GDP increase from 62 billion dollars in 1999 to 160 billion dollars in 2008.

I am not liar and present government [especially people in PML(N)] are full of liars, so maybe you might think that what I wrote is lie too :). Hence, let me give you site that has record of open market exchange rate variations from 1992 till today. This is most reliable site as it belongs to biggest Pakistan foreign exchange dealer (Khanani and Kalia international) that deals with most of open market foreign exchange transactions in Pakistan.

http://www.forexpk.com/kalpoint/kki/code/ver6.0/internal_archives.asp?file=graphs_form.asp&cssfile=kki.css

You have to put dates and currency. Site would give you the graph of rupee exchange variations with respect to that currency. You can read the value from the graph or put the cursor on the graph to see the figure at any particular point.

Actually, I believe that this recent rupee devaluation has started because people do not trust politicians in present government and thus flight of Capital has already started, increasing demand of dollars and selling of rupee assets. Else Pakistan has huge foreign exchange reserves, something Pakistan never had before Musharrf came to power, not even 10 percent of the reserves Pakistan has today, so pressure on rupee and start of devaluation only means flight of capital in big way due to mistrust and lack of confidence on present government full of liars, thugs, thieves, corrupts and incompetents.