Savak
World Star
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Things slowly returning to the improving trend we were witnessing in Jan. Exports up in June, imports down. Inflationary pressures though lower are still stubbornly high in the 8.x range. This has to come down in the 5 range for PTI to regain some of their lost popularity.
SBP has been really proactive on the monetary front, just today they announced long term financing rate is now down to 5% for all export oriented industries.
I think PTI government if they manage to focus on the following points they might get a bigger majority in 2023 and also set us up for sustained growth rate of 5+ percent:
1. Control inflation in the 4-5% range through effective price control committees.
2. Unlock the power sector that has been trapped in the circular debt and this means power transmission is effected leading to loadshedding while cost of power remains high. Bring price down, end loadshedding.
3. Keep trade and current account deficits in check, focus on export growth. Build SEZs on war footing.
Pakistan economy to gradually ‘recover’ in 2021: IMF
The International Monetary Fund (IMF) expects Pakistan economy to move towards ‘gradual recovery’ in 2021.
The IMF in its latest report titled Policy Actions Taken by Countries, was of the view that due to the coronavirus pandemic lead economic slowdown Pakistan’s near-term economic outlook has worsened notably, and growth is estimated at –0.4 percent in FY 2020.
In its report, IMF said that starting on March 23, both the federal and provincial governments have been implementing measures to contain and mitigate the spread of the virus. However, since mid-April, the federal government, in coordination with provinces, has been gradually easing lockdown arrangements, by allowing ‘low-risk industries’ to restart operation and ‘small retail shops’ to reopen with newly developed Standard Operating Procedures.
Among the measures adopted by the government, IMF report highlighted that a relief package worth PKR 1.2 trillion was announced by the federal government on March 24, under which a number of steps were taken i.e. elimination of import duties on emergency health equipment; cash transfers to 6.2 million daily wage workers (Rs75 billion); cash transfers to more than 12 million low-income families (PKR 150 billion), and a transfer to the National Disaster Management Authority (NDMA) for the purchase of COVID-19 related equipment (PKR 25 billion).
Meanwhile, the State Bank of Pakistan (SBP) has responded to the crisis by cutting the policy rate by a cumulative 625 basis points to 7.0 percent since March 17. It has also expanded the scope of existing refinancing facilities and introduced three new ones that aim at: (i) supporting hospitals and medical centers to purchase equipment to detect, contain, and treat COVID-19 (ii) stimulating investment in new manufacturing plants and machinery, as well as modernization and expansion of existing projects (iii) incentivizing businesses to avoid laying off their workers during the pandemic (1,700 SMEs , PKR 113 billion, to date).
https://www.brecorder.com/news/40004188/pakistan-economy-to-gradually-recover-in-2021-imf
Nakam jawan program phase 2 launched
Thanks for your valuable contribution
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Govt has shelved 2740MW of imported coal energy projects in favour of 3700MW indigenous hydro electric projects to be constructed under CPEC.</p>— Shahid Raza (@schaheid) <a href="https://twitter.com/schaheid/status/1282608753997537280?ref_src=twsrc%5Etfw">July 13, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
How dare this selected Niazi replace an expensive means of power generation using imported fuel, with a completely indigenous and cost effective solution. Selected Imran Khan isteefa do!!!!
Should have been a separate thread, would have been useful to burn some of the Patwaris and Jiyalas![]()
Need to control inflation though economic indicators are encouraging but the CPI needs to be controlled
Nakam jawan program phase 2 launched
Funny thing is when corona was exploding all of these losers were quick to blame IK and call him a mumbling confused fool, and now corona is under control because of the smart lockdown policy and these same losers are shying away from praising IK. Calling it "inexplicable reasons" for corona's decline. Jahalat la-ilaaj hai.
Mulk mein corona qaboo karnay par selected Niazi isteefa do!!!
Masses are turning against IK its a sad reality and bitter truth need to control inflation
So lets hear some solutions from you. What has IK done wrong that has caused inflation?
If elections are held today, will Imran Khan win?
The solutions have to come from him and nobody else, in any case.
It will be pretty much the same as before.
If elections are held today, will Imran Khan win?
The solutions have to come from him and nobody else, in any case.
As in Imran Khan will win?
Colour me skeptical. Anyway, elections are over 3 years away.
The reason for me asking these idiots is that they have no clue of Kaptaan has been up against. These morons don't understand what would happened if PK had defaulted on its loans.
If elections are held today, will Imran Khan win?
The solutions have to come from him and nobody else, in any case.
Senate elections are in March, which will give PTI majority in the Senate and then I expect rapid changes. Also rumors of a referendum in the new year to switch to presidential system are growing louder
The question is whether the Pakistani voting public can see that bigger picture.
This won't be good for Pakistan in the long term, if passed. South Asia is best represented by a chain of regional parties rather than one pseudo strongman up top - we in India can attest to this and how!
Governance governance where is tiger force traders refuse to do lockdown
July had the highest number of motorbikes sold in a month IN HISTORY. About 300,000 bikes were sold. Also remember bikes are almost 90% or more localised. This means big industry is back up and running.
But but but saaday main saanp di buhat yaad aandi aay
complete fluke..PTI is on its way to destruction and Nawaz and bhutto will come to turn us into an asian tiger. IK hasnt got a clue i mean look at all his uturns. If it wasnt for luck and more flukes Pakistan would be suffering from a million covid deaths..
I think pakistan has the luckiest people in the world, the govt didnt do anything and covid vanished, they also didnt do anything for the economy and it just amazingly started to pick up..I think shabaz sharif stood with his hands on hips that gave the economy a boost..
Highest remittances in the history of the country in July 2020. Clocked in at $2.7b.
Must be a fluke as well, as per certain members here.
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Top Line securities brilliantly summarized July. More things to be added:<br><br>11) Increase in FX reserves<br>12) LSM sector growing<br>13) Current Account would be in SURPLUS<br>14) Tax Revenues exceeding targets & prior FY. <br><br>V-shaped recovery continues!<a href="https://twitter.com/hashtag/%DA%A9%D9%BE%D8%AA%D8%A7%D9%86_%DA%A9%DB%92%D8%AF%D9%88%D8%B3%D8%A7%D9%84_%D8%A8%DB%92%D9%85%D8%AB%D8%A7%D9%84?src=hash&ref_src=twsrc%5Etfw">#کپتان_کےدوسال_بےمثال</a> <a href="https://t.co/lWPjSHsyVR">pic.twitter.com/lWPjSHsyVR</a></p>— PTI Achievements (@PTI_Achievement) <a href="https://twitter.com/PTI_Achievement/status/1295721964720590851?ref_src=twsrc%5Etfw">August 18, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Na-ehl na-laiq hakumat se mulk nahi chal raha.
Sorry I missed this post... At work right now and posting from my phone will respond in the evening.Can someone explain the incentives/subsidies and other policies provided by the government that have caused these increases? What was successful?
Sorry I missed this post... At work right now and posting from my phone will respond in the evening.
Can someone explain the incentives/subsidies and other policies provided by the government that have caused these increases? What was successful?
Bump - would like to understand better what PTI have done that PMLN and PPP weren’t doing
The biggest difference is that PML N was manipulating the price of the rupee. Basically they kept the exchange rate at 100 rupees to 1 dollar for years. So this made imports artificially cheaper, and made exports more expensive. So the trade deficit greatly expanded, and Pakistan was facing default when Imran Khan took over and the govt had to get a loan from the IMF and beg the Saudis for money.
It also gave a subsidy to the people of Pakistan, and the upper classes benefited the most.
For example if the real price of the rupee is 160, and the goverment is keeping it at 100, and someone purchases a $1,000 iPhone, they would pay 100,000 rupees. However the real price should be 160,000, so they are getting a 60,000 rupee subsidy.
The biggest difference is that PML N was manipulating the price of the rupee. Basically they kept the exchange rate at 100 rupees to 1 dollar for years. So this made imports artificially cheaper, and made exports more expensive. So the trade deficit greatly expanded, and Pakistan was facing default when Imran Khan took over and the govt had to get a loan from the IMF and beg the Saudis for money.
It also gave a subsidy to the people of Pakistan, and the upper classes benefited the most.
For example if the real price of the rupee is 160, and the goverment is keeping it at 100, and someone purchases a $1,000 iPhone, they would pay 100,000 rupees. However the real price should be 160,000, so they are getting a 60,000 rupee subsidy.
What you are saying is correct, the PML followed a policy of supporting the PKR by taking on foreign debt that was unsustainable. However that is only a small part of the story.
The bigger part is, why is Pakistan unable to develop modern industries and export high-value items? If it were able to do so, the constant devaluation of the PKR would not have been required. Compare Pakistan to what was a few decades ago a part of Pakistan.
A depreciating currency (which you present as a necessity) points to a deep underlying economic malaise.
These facts should be obvious, and the biggest beneficiary of understanding this would be the Pakistanis themselves. Otherwise, economically you are going to be left even more behind than you already are.
I’ve been following all the stuff on the foreign exchange deficit and artificial value of the rupee.
I was referring to the industries performing well all of a sudden. Cement, textile, etc, how are those industries exporting more so quickly? And how much does PTI get credit for?
Bump - would like to understand better what PTI have done that PMLN and PPP weren’t doing
In short, PMLN is all about spending but ZERO on earning. They just made no effort to increase revenue generation which is a very difficult task and something PMLN had no interest in. They are all about shortcuts, borrowing more and more to give subsidies and keep everyone happy. PTI is focusing on basic reforms to increase exports, FDIs and tax collection. PTI has had some success in increasing exports and FDI but tax reforms have been a challenge. Unfortunately Covid hasn't done the gov any favours as countries all around the world have had massive economic impact so exports and remittances will suffer.
Posts above keep talking about devaluing the currency. What else has PTI done? This is my specific question. Have they helped certain industries grow? If so, how are they helping those industries grow? Why are exports increasing? Is the increase in exports purely down to the currency valuation? What is PTI doing?
When we talk about a business friendly culture under PTI, what is this culture?
Pakistan stock market has become one of the world's best performers.
Pakistan has surprisingly risen to become Asia’s best-performing stock market and the fourth-best performer in the world, defying the odds amid the coronavirus outbreak.
Benchmark index of the Pakistan Stock Exchange, KSE-100, is up nearly six percent from the beginning of August. The market has also enjoyed double-digit returns, rising nearly 50 percent after a steep fall in March and up over 41 percent year-on-year.
Pakistan equities are far better than those trading on other bourses in Asia. While just a few Chinese indices have surpassed KSE-100 performance on an annual basis, they are still behind this month.
https://www.rt.com/business/499762-pakistan-best-performing-market/
Read it and weep! ��
Cauliflower being sold at Rs 150-180/kg economic prosperity under IK's vision
Cauliflower being sold at Rs 150-180/kg economic prosperity under IK's vision
Immy has taken everybody for a drive. Well, at least he ate food at a langar!
I'm glad patwaris are hurting. Inshallah may Allah add to your misery and despair.
He will win again in 2023. Karlo jo karna hai.
lolI'm glad patwaris are hurting. Inshallah may Allah add to your misery and despair.
He will win again in 2023. Karlo jo karna hai.
lol)
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He will definitely lose Punjab government for sure no way he is coming back from the Buzdar blunder and military would get a really big coalition together to form a government to keep immu in power (or themselves in power...) and even with military support there's only a 40% chance of them coming back into the federal picture
but keep dreaming...
IK winning again in 2023 is a foregone conclusion.
Who will beat him? Nawaz Sharif????)
lol)
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He will definitely lose Punjab government for sure no way he is coming back from the Buzdar blunder and military would get a really big coalition together to form a government to keep immu in power (or themselves in power...) and even with military support there's only a 40% chance of them coming back into the federal picture
but keep dreaming...
lol)
)
)
He will definitely lose Punjab government for sure no way he is coming back from the Buzdar blunder and military would get a really big coalition together to form a government to keep immu in power (or themselves in power...) and even with military support there's only a 40% chance of them coming back into the federal picture
but keep dreaming...