Pakistan Rupee becomes 3rd best-performing Asian currency [Post#126]

[Abdullah719]

Sudden devaluation of local currency against the US dollar was witnessed in interbank trading on Friday morning as the greenback hit an all-time high of Rs144.

Sources told DawnNewsTV that the sudden rise of Rs10 in the value of the US dollar is based on the government's commitments to the International Monitory Fund (IMF).

The US dollar, which was being traded at Rs134 yesterday, opened higher at Rs142 on Friday while the local currency further devalued by Rs2 to Rs144.

Zaffar Paracha, General Secretary of the Exchange Companies Association of Pakistan (ECAP), told DawnNewsTV that the sudden devaluation of rupee has created a panic in the market. He said that the traders are expecting the open market to open at around Rs143 to Rs144.

He said that the devaluation was expected due to the current dialogues between the government and the IMF. "It seems a continuation of the IMF's condition for a bailout package," he added.

Paracha demanded of the government to properly announce the devaluation to end the panic among currency dealers.

Another analyst Ahsan Mehanti said that the move was unexpected for the interbank market as the country has not yet entered the IMF programme. "Owing to the devaluation of the local currency in the recent past, the government was being expected to discourage the rupee devaluation," he added.

"It is not good news for Pakistan," he said, adding that it will also increase the import bill of the country.

According to Mehanti, the IMF was asking the government to bring rupee value at Rs145 per dollar and the interest rate at 10.5 per cent as a precondition for a bailout package. "It seems that the government is complying with the IMF's demands," he concluded.

It is the first major devaluation strike against the local currency during the Pakistan Tehreek-i-Insaf-led (PTI) government in the country.

Earlier on Oct 9, 2018, the value of the dollar had shot up by Rs11.70 in the interbank market during trading before closing at Rs133.64. It had closed the previous day at Rs124.27 to the dollar a day earlier.

The State Bank of Pakistan (SBP) had explained the move as reflective of current account dynamics and a demand-supply gap in the foreign exchange market. The top bank had stated that it will continue to closely monitor the situation and "stand ready to intervene" in case of any unwarranted volatility in the foreign exchange market.

During the two months of the caretaker government, the local currency had been devalued to Rs130 per dollar from around Rs102 per dollar. The dollar was traded at Rs130 just before the general elections.

Earlier, in December 2017 and in March 2018, the rupee was devalued, each time by about 5pc, by the central bank.

https://www.dawn.com/news/1448575/us-dollar-hits-all-time-high-at-rs144-in-interbank-trading

 

[gkb101277867]

Can someone please explain to me how the IMF loan conditions work? Will Pakistan need to keep the rupee devalued at a certain level until the loan is paid back?

 

[Abdullah719]

Petroleum, diesel prices reduced by Rs2 per litre: Asad Umar

ISLAMABAD: The government on Friday reduced the price of petroleum by Rs2 per litre, negating the proposed hike by the Oil and Gas Regulatory Authority.

Finance Minister Asad Umar, addressing a press conference here, announced a decrease of Rs2 per litre in petrol and diesel prices.

Price of kerosene oil has been cut by Rs3 per litre, whereas light diesel oil price has been slashed by Rs5 per litre. Price of domestic gasoline has been decreased by Rs2 per litre, he said.

OGRA on Thursday had sought an increase of up to Rs10 in the prices of petroleum products. In a summary forwarded to the petroleum division, the authority had recommended an increase of Rs6.21 per litre in petrol prices, Rs2 per litre in diesel prices, Rs9.91 in kerosene oil prices and Rs7.79 in light diesel prices.

"Global oil prices rose in October, however the government only increased the petroleum prices by half as much that month," Umar told reporters. Petrol prices had been raised by Rs5 per litre in October.

The finance minister said the Petroleum Development Levy (PDL) on petrol has been cut to Rs6.15 from Rs10, while the PDL on diesel has been reduced to Rs6.56 from Rs8.

The sales tax has been reduced from 15 per cent to 4.5 per cent on petrol, and from 27.5 per cent to 12 per cent on diesel. The cuts in sales tax and PDL were made to keep the petroleum prices in check, he explained.

Following the price revisions, petrol will now be sold at Rs95.83 per litre, diesel at Rs110.94 per litre, kerosene oil at Rs83.50 and light diesel oil at Rs77.44, effective from December 1 (tomorrow).

Umar said there seems to be room for further improvement in the prices in the near future. "We are making changes to the taxes but we want to transfer any improvements to the public," he said.

In the global market, oil prices gained on Thursday after the US benchmark slid below $50 a barrel following reports Russia could join a production cut at next month´s OPEC meeting.

The gains in petroleum prices came on a mixed day for global stocks as traders worldwide weighed Federal Reserve comments that were widely seen as dovish on monetary policy.

Robust petroleum supply and a weakening global economic outlook have weighed on oil prices since early October, pushing US benchmark West Texas Intermediate below $50 a barrel for the first time in more than a year.

But oil prices reversed following reports that Russia could join Saudi Arabia and other producers in cutting output at a December 6 Vienna meeting to defend prices.

'Will not control dollar artificially'
Asad Umar said the central bank will not attempt to control the dollar price through artificial means, a few hours after the greenback touched an all-time high of Rs142 in the interbank market on Friday.

"The State Bank of Pakistan is monitoring and determining the exchange rates. In the past, the rupee was maintained artificially. [But not anymore], the State Bank is free to make its own decisions [on the matter]," said the finance minister.

He lamented that the artificial control of the exchange rates destroyed production in Pakistan. "The country cannot export wheat anymore because of this artificial control. Our textile and shoe-making industries were destroyed due to this."

Umar said that the previous government took out loans to maintain the exchange rates. "And this harmed our industries," he noted.

The minister admitted to the negative impact of the rupee devaluation, reiterating that the government did not wish to approach the International Monetary Fund.

Our exports have increased, so have the investments. Foreign investment has also improved and we will soon see more investments from different countries, he added.

https://www.geo.tv/latest/220202

 

[Varun]

With oil prices going back on a lower plane, you would in fact expect the PKR to appreciate. Like India, Pakistan imports boatloads of crude.

The INR has likewise climbed back up to the 60s this past week.

 

[MenInG]

ISLAMABAD: Prime Minister Imran Khan said on Friday his government was taking steps to ensure that a shortage of dollars would not exist in the future.

Addressing a ceremony to announce the launch of a car manufacturing plant by JW Forland, the prime minister spoke on the dollar reaching an all-time high of Rs142 in the interbank.

The prime minister said he had been receiving calls since morning about the hike in the dollar price. “I want to tell everyone not to worry about the dollar hike. There is an adjustment taking place. We are taking steps which will ensure that there won't be a shortage of dollars in Pakistan.”

The prime minister highlighted that Pakistan’s biggest problem was the current account deficit which stood at almost $18.5 billion. “The government is tasked with overcoming the deficit. When there is pressure on the dollar, the exchange rate increases.”

Prime Minister Khan stressed there was a need for a change in mindset, emphasising that his government had made investment easier. “Investment creates jobs and brings dollars in the country."

He spoke on ease of doing business for investors, which in turn would attract more investors. According to the prime minister, there was a need for technological transfer, which he said was among the areas of focus during his trip to China.

“For the first time, we have asked China for a technology transfer. When there is technology transfer, the country prospers.”

The prime minister further said that Pakistan had transformed into an import economy where manufacturing had diminished. “Where there were once factories, real estate projects now exist.”

Prime Minister Khan said for the first time in Pakistan’s history a complete car manufacturing plant was being set up and this would create 5,000 jobs which would increase to 35,000 in the future.

Speaking on the issue of money laundering, Prime Minister Khan said the government was taking steps to bring back looted money. "There is $10 billion of money laundering annually in Pakistan.”

https://www.geo.tv/latest/220248-i-want-to-tell-everyone-not-to-worry-about-the-dollar-hike

 

[JaDed]

With oil prices going back on a lower plane, you would in fact expect the PKR to appreciate. Like India, Pakistan imports boatloads of crude.

The INR has likewise climbed back up to the 60s this past week.

Because of their commitment to IMF.. as in the article, similar to 1991 India.

 

[proud_pakistani]

The question with all this now is that for how long can we keep blaming these plummets on the previous government. Especially when Asad Umar keeps saying everything is under control.

 

[Rinnegan Sasuke]

The question with all this now is that for how long can we keep blaming these plummets on the previous government. Especially when Asad Umar keeps saying everything is under control.

These plummets started before PTI's tenure. This what happens when you pump money you don't have to keep your currency artificially low, and having imports grow and exports stunt.

 

[ILcricket]

Good for the non-residents but killer blow for economy .

 

[Buffet]

Can someone please explain to me how the IMF loan conditions work? Will Pakistan need to keep the rupee devalued at a certain level until the loan is paid back?

IMF has asked,

• To bring potential tax evaders into the tax net.
• Restricting the budget deficit around 5 percent of the GDP
• Depreciation in currency to enhance the exports and controlling imports in order to restrict the current account deficit.

Pakistan can't keep exporting 20B and importing 40B. That's just not possible without economy collapsing.


There is no point in IMF giving funds and Pakistan simply not making any progress. Any family in financial trouble will do the steps IMF is suggesting. It's just at bigger level, but concept is not different.

Taking those steps will be painful in short term, but you lay the foundation for longer term financial well being. Taking a loan for 12 months from Saudi is not going to help at all.

 

[Savak]

IMF has asked,

• To bring potential tax evaders into the tax net.
• Restricting the budget deficit around 5 percent of the GDP
• Depreciation in currency to enhance the exports and controlling imports in order to restrict the current account deficit.

Pakistan can't keep exporting 20B and importing 40B. That's just not possible without economy collapsing.


There is no point in IMF giving funds and Pakistan simply not making any progress. Any family in financial trouble will do the steps IMF is suggesting. It's just at bigger level, but concept is not different.

Taking those steps will be painful in short term, but you lay the foundation for longer term financial well being. Taking a loan for 12 months from Saudi is not going to help at all.

The CPEC is responsible for the massive gap between our exports and imports and why our imports to Chinese companies have skyrocketed. This is the legacy of the PPP and PML-N

 

[Buffet]

The CPEC is responsible for the massive gap between our exports and imports and why our imports to Chinese companies have skyrocketed. This is the legacy of the PPP and PML-N

Whatever be the reasons, situation can't continue. That's what IMF is demanding.

 

[Buffet]

 

[Napa]

IMF has asked,

• To bring potential tax evaders into the tax net.
• Restricting the budget deficit around 5 percent of the GDP
• Depreciation in currency to enhance the exports and controlling imports in order to restrict the current account deficit.

Pakistan can't keep exporting 20B and importing 40B. That's just not possible without economy collapsing.


There is no point in IMF giving funds and Pakistan simply not making any progress. Any family in financial trouble will do the steps IMF is suggesting. It's just at bigger level, but concept is not different.

Taking those steps will be painful in short term, but you lay the foundation for longer term financial well being. Taking a loan for 12 months from Saudi is not going to help at all.

Very sensible post. You can't keep importing so much more than you export. To export more you need to develop modern industries or tourism. There is only so much foreign exchange that soccer balls and textiles can earn.

 

[tonmoy]

Very sensible post. You can't keep importing so much more than you export. To export more you need to develop modern industries or tourism. There is only so much foreign exchange that soccer balls and textiles can earn.

Agree that Pakistan needs to diversify their exports just like any developing/middle income country. However textile in particular has a lot of room for growth.
Given that Pakistan is a cotton producer and a weaker currency than Bangladesh and Equally cheap labor as Bangladesh, Pak should be exporting more than BD atleast.

 

[Reddy]

40% currency depreciation in 100 days, this is massive, can bankrupt some PSL teams or they will sell their stakes to get out of heavy dollar denominated expenses and losses.

 

[Napa]

Agree that Pakistan needs to diversify their exports just like any developing/middle income country. However textile in particular has a lot of room for growth.
Given that Pakistan is a cotton producer and a weaker currency than Bangladesh and Equally cheap labor as Bangladesh, Pak should be exporting more than BD atleast.

It will be very hard for Pakistan to catch up with Bangladesh in the manufacture of textiles for exports. Bangladesh has shown a willingness to protect its textile industry in a bipartisan fashion, that is both political parties do not mess with it. Investors feel secure investing in the Bangladesh textiles industry. Also Bangladesh's labor costs are comparable to Pakistan's.

Pakistan could take away some of the current Chinese textiles manufacturing, as labor costs are rising in China. Even for that you need security. An American manager who travels to Pakistan has Daniel Pearl on his mind.

 

[waleed88]

Imran Khan when asked anything about his government's doings )

 

[Zeeraq]

Ex-govt spent $8 bn to stabilise rupee, Senate told

ISLAMABAD: State Minister for Revenue Hammad Azhar on Friday told the Senate that the former PML-N government had artificially maintained the price of dollar against rupee by spending $8 billion from the foreign reserves.

Responding to a calling attention notice raised by Senator Sherry Rehman about the record devaluation of Pak rupee against the US dollar, the minister said the government inherited the worst economic situation and was sparing no effort to put it on the right track. Giving details, he said the rupee rate against dollar was Rs104 in December 2017, Rs124 in May 2018 and Rs129 in June 2018.

Clarifying the statement attributed to the Governor State Bank of Pakistan, he said rupee would not depreciate any further. However, he could not complete his answer as the PML-N Senator Ashok Kumar pointed out a lack of quorum.

Later, the House was adjourned to meet again on Monday at 2:00pm. Meanwhile, as many as two reports of Standing Committee on National Health Services, Regulations and Coordination on getting the WHO certification of Drug Regulatory Authority of Pakistan (DRAP) and Transplantation of Human Organs and Tissues (Amendment) Bill, 2018 were presented in the House. Chairman Standing Committee Mian Muhammad Ateeq Shaikh presented both the reports.

https://www.thenews.com.pk/print/405961-ex-govt-spent-8-bn-to-stabilise-rupee-senate-told

 

[Josh]

USD/PKR pair seems to be good for investment at the moment. PKR is expected to go ($ 1, 164 PKR) by a year. Investment market suggests this.

 

[gazza619]

ISLAMABAD: State Minister for Revenue Hammad Azhar on Friday told the Senate that the former PML-N government had artificially maintained the price of dollar against rupee by spending $8 billion from the foreign reserves.

Responding to a calling attention notice raised by Senator Sherry Rehman about the record devaluation of Pak rupee against the US dollar, the minister said the government inherited the worst economic situation and was sparing no effort to put it on the right track. Giving details, he said the rupee rate against dollar was Rs104 in December 2017, Rs124 in May 2018 and Rs129 in June 2018.

Clarifying the statement attributed to the Governor State Bank of Pakistan, he said rupee would not depreciate any further. However, he could not complete his answer as the PML-N Senator Ashok Kumar pointed out a lack of quorum.

Later, the House was adjourned to meet again on Monday at 2:00pm. Meanwhile, as many as two reports of Standing Committee on National Health Services, Regulations and Coordination on getting the WHO certification of Drug Regulatory Authority of Pakistan (DRAP) and Transplantation of Human Organs and Tissues (Amendment) Bill, 2018 were presented in the House. Chairman Standing Committee Mian Muhammad Ateeq Shaikh presented both the reports.

https://www.thenews.com.pk/print/405961-ex-govt-spent-8-bn-to-stabilise-rupee-senate-told

So it was all artificial!

Can we get these criminals to pay back?

 

[jusarrived]

So it was all artificial!

Can we get these criminals to pay back?

its hardly a crime though . Every central bank takes these measures when currency shows big swings .

 

[Rinnegan Sasuke]

Dollar hits historical high of Rs148 [Rupee continues slide]

The value of the US dollar against the rupee touched another all-time high for the second consecutive day, reaching approximately Rs148 in the interbank market.

The greenback's was valued at Rs141.5 yesterday, but climbed roughly Rs6.50 to hit a historical peak today, with speculation rife in the forex market that the rupee may slide further.

The fall in the rupee's value comes a day after Prime Minister Imran Khan set up a committee to control devaluation of the local currency and capital flight from Pakistan.

ECAP secretary general Zafar Paracha told Dawn that the dollar is not easily available in the market, and exchange companies are not in a position to provide any large amount of dollars.

The dollar had gained Rs2.25 against the rupee in the open market yesterday amid strong speculation that the rupee would depreciate significantly after the signing of a bailout agreement with the International Monetary Fund (IMF).

The IMF had spoken of a “market determined exchange rate” in its statement on the programme, and the financial markets have not responded favourably to the announcement.

“Fears of further devaluation as a result of the agreement with the IMF have depressed the currency market and the rupee may lose more against the greenback in the coming days,” Secretary General of Exchange Companies Association of Pakistan Zafar Paracha had said on Monday.

The resulting speculation in the forex market has seen small and large investors looking towards the greenback.

"The potential for higher rate of dollar is visible in the inter-bank money market," a banker was recently quoted as saying.

Most of the currency dealers and experts have already expressed their disappointment over the undisclosed conditions agreed between the IMF authorities and the government.

The rate in the interbank is considered the official exchange rate but the open market rate fluctuations and shortage of dollars sometimes compel the State Bank to change the exchange rate. The SBP usually uses banking rates for devaluation of the rupee.

https://www.dawn.com/news/1482642/dollar-hits-historical-high-of-rs148

 

[Ronaldo7]

Sad.

 

[Zeshan547]

If this is naya Pakistan then Plz give me Purana Pakistan for Goodness sake. utter disappointed so far with PTI performance.

 

[Bewal Express]

If this is naya Pakistan then Plz give me Purana Pakistan for Goodness sake. utter disappointed so far with PTI performance.

Why do Currencies drop in value?

 

[S_haq]

Why do Currencies drop in value?

You can see from Zeshan547's post that he has a very limited knowledge of how economies work. Why waste time arguing with a kid who likes to jump on the bashing bandwagon without understanding the context first.

 

[TOP SPINNER_01]

Shameful policies.This set up must go.

 

[topspin]

Dollar has strengthened of late however the US is in late economical cycle, with a recession expected within the next 18 - 24 months, so expect this to plummet down from 148 by then.

Need to stop blaming PTI for America's recent resurgence.

 

[Rinnegan Sasuke]

Dollar has strengthened of late however the US is in late economical cycle, with a recession expected within the next 18 - 24 months, so expect this to plummet down from 148 by then.

Need to stop blaming PTI for America's recent resurgence.

To be fair this had been predicted a lot over the last few years. Keeping the rupee inflated was never a long term solution, you can only delay the inevitable.

 

[TalentSpotterPk]

If this is naya Pakistan then Plz give me Purana Pakistan for Goodness sake. utter disappointed so far with PTI performance.

You thought a liar, a person who peddled a certain political wings lies after lies in press talks, a person who runs away from defamation notices for his baseless frivolous packet of lies allegations was supposed to change Pakistan for Good ?



Never Ever. There is a God if you believe in one and there is Makafaat e Amal.




Those institutes who have aided and abetted in launching and installing this stooge and those braindead cult followers who voted for him will be held responsible for this disaster.




Since the misuse of Panama Leaks through Kangaroo judges how much rupee devaluation has Pkr witnessed ?


Somebody post video of this all talk no substance SELECTED PM where he used to give Bhaashan to nation through Imran Calculator that Rupee 1 increase in Dollar price increased Pakistan’s Debt by Rs. 1.25 billion.



State Bank of Pakistan has been gifted to IMF by Baqir’s appointment. This governed state bank had his ID card made on May 4th 2019 prior to which he wasn’t even a Pakistani national officially.


This unstable ghulam ibn e ghulam appointed him (Baqir) governor state bank because Christine Lagard appreciated him.




Tabdeeli worm is about to die it’s natural death soon. Refer to Gallop survey 2019 just after 9 months of this government. Wait for Saqib stooge’s allies getting aside and this drama will be packed for Good.

 

[Bewal Express]

You thought a liar, a person who peddled a certain political wings lies after lies in press talks, a person who runs away from defamation notices for his baseless frivolous packet of lies allegations was supposed to change Pakistan for Good ?



Never Ever. There is a God if you believe in one and there is Makafaat e Amal.




Those institutes who have aided and abetted in launching and installing this stooge and those braindead cult followers who voted for him will be held responsible for this disaster.




Since the misuse of Panama Leaks through Kangaroo judges how much rupee devaluation has Pkr witnessed ?


Somebody post video of this all talk no substance SELECTED PM where he used to give Bhaashan to nation through Imran Calculator that Rupee 1 increase in Dollar price increased Pakistan’s Debt by Rs. 1.25 billion.



State Bank of Pakistan has been gifted to IMF by Baqir’s appointment. This governed state bank had his ID card made on May 4th 2019 prior to which he wasn’t even a Pakistani national officially.


This unstable ghulam ibn e ghulam appointed him (Baqir) governor state bank because Christine Lagard appreciated him.




Tabdeeli worm is about to die it’s natural death soon. Refer to Gallop survey 2019 just after 9 months of this government. Wait for Saqib stooge’s allies getting aside and this drama will be packed for Good.

Oh no- not another essay full of lies. No carrots here for you!

 

[the Great Khan]

You thought a liar, a person who peddled a certain political wings lies after lies in press talks, a person who runs away from defamation notices for his baseless frivolous packet of lies allegations was supposed to change Pakistan for Good ?



Never Ever. There is a God if you believe in one and there is Makafaat e Amal.




Those institutes who have aided and abetted in launching and installing this stooge and those braindead cult followers who voted for him will be held responsible for this disaster.




Since the misuse of Panama Leaks through Kangaroo judges how much rupee devaluation has Pkr witnessed ?


Somebody post video of this all talk no substance SELECTED PM where he used to give Bhaashan to nation through Imran Calculator that Rupee 1 increase in Dollar price increased Pakistan’s Debt by Rs. 1.25 billion.



State Bank of Pakistan has been gifted to IMF by Baqir’s appointment. This governed state bank had his ID card made on May 4th 2019 prior to which he wasn’t even a Pakistani national officially.


This unstable ghulam ibn e ghulam appointed him (Baqir) governor state bank because Christine Lagard appreciated him.




Tabdeeli worm is about to die it’s natural death soon. Refer to Gallop survey 2019 just after 9 months of this government. Wait for Saqib stooge’s allies getting aside and this drama will be packed for Good.

Can you please post your solution to the current economic problems facing the country thanks to the utter mismanagement of the economy by the two previous governments. All you post is rhetoric. It seems as if you wait for any negative news about the economy, get extremely excited and then post rhetoric.

Can you explain how you or your party would have dealt with a looming immediate balance of payments crisis? How would they have dealt with the fact we are nearly bankrupt?

oh yes I know, they would have borrowed not 6 billion from the IMF but 13 billion, pocketed 6 in london and then used the rest to subsidise power, food and prop up the currency. thus in five years leaving an even bigger hole for another govt.

Also can you answer why punjab which was ruled by the mighty egalitarian clever sharif family failed to establish a working health service? you know the kind they like to take advantage of in london? IK did it in 6 months..

 

[the Great Khan]

oh by the way the gallop polls can show whatever, there is no election untill the mid 2020's and by then youll be lucky if the PMLN even exists as a functioning party if it continues on the current path.

 

[Bewal Express]

You thought a liar, a person who peddled a certain political wings lies after lies in press talks, a person who runs away from defamation notices for his baseless frivolous packet of lies allegations was supposed to change Pakistan for Good ?



Never Ever. There is a God if you believe in one and there is Makafaat e Amal.




Those institutes who have aided and abetted in launching and installing this stooge and those braindead cult followers who voted for him will be held responsible for this disaster.




Since the misuse of Panama Leaks through Kangaroo judges how much rupee devaluation has Pkr witnessed ?


Somebody post video of this all talk no substance SELECTED PM where he used to give Bhaashan to nation through Imran Calculator that Rupee 1 increase in Dollar price increased Pakistan’s Debt by Rs. 1.25 billion.



State Bank of Pakistan has been gifted to IMF by Baqir’s appointment. This governed state bank had his ID card made on May 4th 2019 prior to which he wasn’t even a Pakistani national officially.


This unstable ghulam ibn e ghulam appointed him (Baqir) governor state bank because Christine Lagard appreciated him.




Tabdeeli worm is about to die it’s natural death soon. Refer to Gallop survey 2019 just after 9 months of this government. Wait for Saqib stooge’s allies getting aside and this drama will be packed for Good.

Run baby Run

 

[Bewal Express]

Can you please post your solution to the current economic problems facing the country thanks to the utter mismanagement of the economy by the two previous governments. All you post is rhetoric. It seems as if you wait for any negative news about the economy, get extremely excited and then post rhetoric.

Can you explain how you or your party would have dealt with a looming immediate balance of payments crisis? How would they have dealt with the fact we are nearly bankrupt?

oh yes I know, they would have borrowed not 6 billion from the IMF but 13 billion, pocketed 6 in london and then used the rest to subsidise power, food and prop up the currency. thus in five years leaving an even bigger hole for another govt.

Also can you answer why punjab which was ruled by the mighty egalitarian clever sharif family failed to establish a working health service? you know the kind they like to take advantage of in london? IK did it in 6 months..

Watch the video below to see what these crooks did!

 

[the Great Khan]

Watch the video below to see what these crooks did!

I see he has gone quiet again. Why? why cant their supporters come out, puff their chests and tell us their mighty achievements in the last 30 years.? why? where is the pakistani national health service? what about sewage managements? how about waste management...actually forget all of that just tell me what happened to the level of exports during the PMLN's time because they are businessmen afterall and tajarbakaar so should have done this part?

all they gave us was miles of roads..so they could drive their BMW's on them..

 

[Abdullah719]

Can you please post your solution to the current economic problems facing the country

Bring back Ishaq Dar. Asian Tiger pending.

 

[Lonewarrior]

Can you please post your solution to the current economic problems facing the country thanks to the utter mismanagement of the economy by the two previous governments. All you post is rhetoric. It seems as if you wait for any negative news about the economy, get extremely excited and then post rhetoric.

Can you explain how you or your party would have dealt with a looming immediate balance of payments crisis? How would they have dealt with the fact we are nearly bankrupt?

oh yes I know, they would have borrowed not 6 billion from the IMF but 13 billion, pocketed 6 in london and then used the rest to subsidise power, food and prop up the currency. thus in five years leaving an even bigger hole for another govt.

Also can you answer why punjab which was ruled by the mighty egalitarian clever sharif family failed to establish a working health service? you know the kind they like to take advantage of in london? IK did it in 6 months..

Becoz PML-N and PPP looting money is all Deep Eshtate Sajish ...

 

[the Great Khan]

[MENTION=138980]TalentSpotterPk[/MENTION]

please engage and reply to some of our queries. thanks..

 

[Waseem]

So what did people expect when PMLN's own finance minister Miftah Ismail admitted openly that Rupee value was artificially strengthened by con artist and money launderer Ishaq Dar which was disastrous for economy so value dropped sharply even last months of PMLN government.

Now for those who don't have any idea about economy, Imran Khan and current government are clueless but almost every top economist in the country now agrees that PMLN left the economy in pathehtic situation, yes they do think PTI government has achieved very little so far but this was the trend in all previous governments and PTI should be judged after they complete their tenure.

But as i said, i don't expect average person to understand issues this government is facing, they just see rupee being devalued, stock market crashing and inflation.

Biggest lesson to learn is "Yes subsidies are all good for average people but no point subsidising everything when you are borrowing heavily to fund those subsidies".

If this doesn't explain crisis PTI government is facing then NOTHING will:

Imports in PMLN government
Increased from $45bn in 2013 to $61bn in 2018 (Increase of $16 Billion)

Exports in PMLN government
$25bn in 2013 to $20bn in 2018 (Decease of $5 Billion)

The external current account deficit reached $18 billion which was 5 times the size of current account deficit of $2.5 billion in FY2013 – the last year of PPP government in office.

 

[Bewal Express]

So what did people expect when PMLN's own finance minister Miftah Ismail admitted openly that Rupee value was artificially strengthened by con artist and money launderer Ishaq Dar which was disastrous for economy so value dropped sharply even last months of PMLN government.

Now for those who don't have any idea about economy, Imran Khan and current government are clueless but almost every top economist in the country now agrees that PMLN left the economy in pathehtic situation, yes they do think PTI government has achieved very little so far but this was the trend in all previous governments and PTI should be judged after they complete their tenure.

But as i said, i don't expect average person to understand issues this government is facing, they just see rupee being devalued, stock market crashing and inflation.

Biggest lesson to learn is "Yes subsidies are all good for average people but no point subsidising everything when you are borrowing heavily to fund those subsidies".

If this doesn't explain crisis PTI government is facing then NOTHING will:

Imports in PMLN government
Increased from $45bn in 2013 to $61bn in 2018 (Increase of $16 Billion)

Exports in PMLN government
$25bn in 2013 to $20bn in 2018 (Decease of $5 Billion)

The external current account deficit reached $18 billion which was 5 times the size of current account deficit of $2.5 billion in FY2013 – the last year of PPP government in office.

And this at the time when Oil PRICES WERE AVERAGING $40, today they stand at $70- this was a massive premium for the PK economy but they wasted it.

 

[Waseem]

And this at the time when Oil PRICES WERE AVERAGING $40, today they stand at $70- this was a massive premium for the PK economy but they wasted it.

I wanted to mention a few more things and oil price is definitely one of them which was historically low throughout PMLN government but they wasted that golden period as well.

 

[the Great Khan]

I wanted to mention a few more things and oil price is definitely one of them which was historically low throughout PMLN government but they wasted that golden period as well.

of course they did..I mean what do you expect? His maasoom shukul only appeared on TV when his backside was on the line.

Just imagine if NS was in charge while feb26th happened..can you imagine the turmoil we would be in currently? He would have used that opportunity to neuter the armed forces rather than strengthening our defence.

i shudder to think what he would have done..

 

[Hermoine Green]

[MENTION=138980]TalentSpotterPk[/MENTION]

please engage and reply to some of our queries. thanks..

He never reply. He post his pathetic views, and then run away
Like his leaders.

 

[Savak]

So what did people expect when PMLN's own finance minister Miftah Ismail admitted openly that Rupee value was artificially strengthened by con artist and money launderer Ishaq Dar which was disastrous for economy so value dropped sharply even last months of PMLN government.

Now for those who don't have any idea about economy, Imran Khan and current government are clueless but almost every top economist in the country now agrees that PMLN left the economy in pathehtic situation, yes they do think PTI government has achieved very little so far but this was the trend in all previous governments and PTI should be judged after they complete their tenure.

But as i said, i don't expect average person to understand issues this government is facing, they just see rupee being devalued, stock market crashing and inflation.

Biggest lesson to learn is "Yes subsidies are all good for average people but no point subsidising everything when you are borrowing heavily to fund those subsidies".

If this doesn't explain crisis PTI government is facing then NOTHING will:

Imports in PMLN government
Increased from $45bn in 2013 to $61bn in 2018 (Increase of $16 Billion)

Exports in PMLN government
$25bn in 2013 to $20bn in 2018 (Decease of $5 Billion)

The external current account deficit reached $18 billion which was 5 times the size of current account deficit of $2.5 billion in FY2013 – the last year of PPP government in office.

And there is the perception that the PPP were just corrupt with no brains in the govt whereas Nawaz was "Kuch Khata hai to Lagata bhi hai" and very business friendly

 

[WebGuru]

He never reply. He post his pathetic views, and then run away
Like his leaders.

His views are basically tweets and copy paste excerpts from "evil army behind everything brigade"

 

[waleed88]

To be fair this had been predicted a lot over the last few years. Keeping the rupee inflated was never a long term solution, you can only delay the inevitable.

Please don't blame the incompetence of a batch of buffoons in the cabinet currently on what the previous governments did. Specially since those batch of buffoons had to be replaced by the same faces that came in before. Which means atleast they were doing something right

 

[Markhor]

You cannot live beyond your means as Pakistan have done for so long.

There is a price to be paid for artificially propping up the rupee - and under PMLN it came at the cost of depleting the foreign exchange reserves.

The rupee value is now much closer to the real exchange rate after devalution. This was necessary but bitter medicine.

 

[Gabbar Singh]

You cannot live beyond your means as Pakistan have done for so long.

There is a price to be paid for artificially propping up the rupee - and under PMLN it came at the cost of depleting the foreign exchange reserves.

The rupee value is now much closer to the real exchange rate after devalution. This was necessary but bitter medicine.

Khan and his team face an unenviable task. To fix the economy lots of bitter pills will need to be swallowed by the people however this could cost Khan dear at the next election. The PTI may well take the steps which set the economy on the right route however if the electorate are short sighted and impatient they could then vote back into power the very crooks who wrecked the economy in the first place.

 

[MenInG]

The rupee continued to fall to record lows on Friday, after the government agreed in principle to a $6 billion loan from the International Monetary Fund (IMF).

The rupee, which lost 3.6 per cent on Thursday to close at 146.2 against the US dollar in the interbank market, dropped further on Friday, dealers said, selling at Rs149.50 in the interbank market and Rs150 in the open market.

The fall reflects the IMF's condition for a “market-based exchange rate mechanism, which will see limited intervention by the central bank now,” said Saad Hashmi, chief economist and research director at Topline Securities in Karachi.

The stock market also declined on Friday, with the benchmark KSE-100 index down 2.4pc by 11:15am.

While the exact conditions of a final IMF deal are still unknown, Sunday's Staff-Level accord, which must still be approved by the Fund's board in Washington, said a “market-determined” exchange rate would help the financial sector.

That pointed to less support from the State Bank of Pakistan, which at present underpins the rupee in a de facto managed float system.

Late on Thursday, the SBP issued a statement saying the sharp fall in the rupee “reflects demand and supply conditions in the foreign exchange market” and would help in correcting market imbalances.

However, the drop presents a political problem for the government, which came to power last year promising to build a new social welfare system and vowing not to seek what would be Pakistan's 13th bailout since the 1980s.

With the economy facing a sharp slowdown in growth, the government is expected to have to raise taxes or impose heavy spending cuts to reduce its ballooning budget deficit at a time when household budgets are increasingly squeezed.

While many analysts see the rupee as overvalued and say the SBP has wasted billions defending it, a weaker currency is likely to fuel inflation, which is already over 8pc, with power and fuel prices hit especially hard.

Hashmi noted market talk that oil imports were already facing payment pressure.

The SBP, which is due to announce its latest interest rate decision on Monday, said late on Thursday that its foreign exchange reserves fell $138 million in the week ending May 10 to $8.846 billion, less than needed to cover three months of imports.

https://www.dawn.com/news/1482860/r...usd-stock-market-down-24pc-in-intra-day-trade

 

[the Great Khan]

Khan and his team face an unenviable task. To fix the economy lots of bitter pills will need to be swallowed by the people however this could cost Khan dear at the next election. The PTI may well take the steps which set the economy on the right route however if the electorate are short sighted and impatient they could then vote back into power the very crooks who wrecked the economy in the first place.

unless things get a bit better in two years time and while at the same time the opposition self immolates as it seems like it is about to do. The fun is not over yet..

 

[IAJ]

Pakistani rupee: What is happening?

I have been looking at the value of rupees versus USD and the Norwegian Krone (NOK)for last few days and it seems it’s getting weaker and weaker.

151 rupees for 1 USD is crazy and some time back 1 NOK was 15,5 rupees and today it is 17,33 rupees. Well good for us living abroad but feel sorry for small-medium businesses dependent on imports and for country as whole.

What are the gov’s plan to get out of this state?

 

[IAJ]

OP, please move this to Timepass, thank you

 

[Bewal Express]

Basic supply and demand.

 

[GoUgandaCranes]

OP, please move this to Timepass, thank you

Good time to send remittance home and contribute to the economy.

 

[IAJ]

Good time to send remittance home and contribute to the economy.

Absolutely

 

[GBK_Fan]

Have you not been watching the news lately? It’s expected to hit 200 unless the economic situation changes so don’t move currency to PKR unless necessary

 

[King-Misbah]

I have been looking at the value of rupees versus USD and the Norwegian Krone (NOK)for last few days and it seems it’s getting weaker and weaker.

151 rupees for 1 USD is crazy and some time back 1 NOK was 15,5 rupees and today it is 17,33 rupees. Well good for us living abroad but feel sorry for small-medium businesses dependent on imports and for country as whole.

What are the gov’s plan to get out of this state?

This had to be done. The rupee was controlled artifically and subsidised by the last government. Pakistan should stop importing and start focusing on home production. This will increase exports in the future. Why were we even importing tomatoes from India? Pakistan could grow its own tomatoes!

 

[Pete Rose]

Supply, demand, and hoarding and some speculation.

 

[Hadi Rizvi]

Results of 10 years of artificial valuation and "growth"

 

[Pakistanian]

A weaker currency will help exports. I read elsewhere that the real value of the rupee is actually Rs.180 for a dollar, so like others have mentioned its been kept overvalued in the past.

 

[Mamoon]

The government has no plan which is evident by the chopping and changing in the cabinet and their several U-turns, but the state of the economy has allowed them to hide behind the poor performance of the previous governments.

This is a win-win situation for PTI and their supporters - if they can somehow drag Pakistan out of this mess, they will obviously take a lot of well-deserved credit, but if they fail to do so, they can always deflect the blame from themselves and claim that we tried our best but we were in a hopeless situation.

What PTI supporters don’t realize that it is not necessary that they government is taking the right steps to get the economy out of trouble.

The Asad Umar fiasco, which is yet to be explained by the supporters without resorting to deflection, shows that the government doesn’t really know what it is doing.

They have inherited a tough situation, but their inexperience is also getting exposed. Nevertheless, when you make tall claims and ride on the tabdeeli rhetoric, people are bound to have expectations.

PTI cannot use the performance of PMLN and PPP as a shield forever - at some point, they will have to answer for their own performance and decisions.

This is another aspect where PTI supporters find themselves in a pickle and resort to deflection.

When you ask them by when can PTI be held accountable, 5 years, 10 years, 20 years or more, they refuse to answer.

It appears that the timeframe is at the convenience and discretion of PTI.

If they fail to steer the country in the right direction, they can hide behind the performance of other parties for a 100 years, but if they manage to set things straight, they will be more than happy to take credit after 5 years.

 

[Bewal Express]

The government has no plan which is evident by the chopping and changing in the cabinet and their several U-turns, but the state of the economy has allowed them to hide behind the poor performance of the previous governments.

This is a win-win situation for PTI and their supporters - if they can somehow drag Pakistan out of this mess, they will obviously take a lot of well-deserved credit, but if they fail to do so, they can always deflect the blame from themselves and claim that we tried our best but we were in a hopeless situation.

What PTI supporters don’t realize that it is not necessary that they government is taking the right steps to get the economy out of trouble.

The Asad Umar fiasco, which is yet to be explained by the supporters without resorting to deflection, shows that the government doesn’t really know what it is doing.

They have inherited a tough situation, but their inexperience is also getting exposed. Nevertheless, when you make tall claims and ride on the tabdeeli rhetoric, people are bound to have expectations.

PTI cannot use the performance of PMLN and PPP as a shield forever - at some point, they will have to answer for their own performance and decisions.

This is another aspect where PTI supporters find themselves in a pickle and resort to deflection.

When you ask them by when can PTI be held accountable, 5 years, 10 years, 20 years or more, they refuse to answer.

It appears that the timeframe is at the convenience and discretion of PTI.

If they fail to steer the country in the right direction, they can hide behind the performance of other parties for a 100 years, but if they manage to set things straight, they will be more than happy to take credit after 5 years.

If i understand correctly-So you want the PTI to sort out the mess created over decades quickly and if they dont- you want losers that created the mess back in power? I am confused!

 

[Technics 1210]

The government has no plan which is evident by the chopping and changing in the cabinet and their several U-turns, but the state of the economy has allowed them to hide behind the poor performance of the previous governments.

This is a win-win situation for PTI and their supporters - if they can somehow drag Pakistan out of this mess, they will obviously take a lot of well-deserved credit, but if they fail to do so, they can always deflect the blame from themselves and claim that we tried our best but we were in a hopeless situation.

What PTI supporters don’t realize that it is not necessary that they government is taking the right steps to get the economy out of trouble.

The Asad Umar fiasco, which is yet to be explained by the supporters without resorting to deflection, shows that the government doesn’t really know what it is doing.

They have inherited a tough situation, but their inexperience is also getting exposed. Nevertheless, when you make tall claims and ride on the tabdeeli rhetoric, people are bound to have expectations.

PTI cannot use the performance of PMLN and PPP as a shield forever - at some point, they will have to answer for their own performance and decisions.

This is another aspect where PTI supporters find themselves in a pickle and resort to deflection.

When you ask them by when can PTI be held accountable, 5 years, 10 years, 20 years or more, they refuse to answer.

It appears that the timeframe is at the convenience and discretion of PTI.

If they fail to steer the country in the right direction, they can hide behind the performance of other parties for a 100 years, but if they manage to set things straight, they will be more than happy to take credit after 5 years.

So much wrong in the post, you clearly have next to zero idea of the currency markets and what influences said market. The main contributor behind the fall of PKR, is the USD, which you have not addressed because once again you take every opportunity to criticize PTI, despite you having voted for the party.

Unless you are now going to claim Imran Khan has influence over the USD, your broken record is only suitable for the DMC championships.

 

[Mamoon]

So much wrong in the post, you clearly have next to zero idea of the currency markets and what influences said market. The main contributor behind the fall of PKR, is the USD, which you have not addressed because once again you take every opportunity to criticize PTI, despite you having voted for the party.

Unless you are now going to claim Imran Khan has influence over the USD, your broken record is only suitable for the DMC championships.

As usual, you go off on a tangent and put words in other people's mouth without making an honest attempt to understand the POV of the other poster. This is your usual modus operandi when it comes to discourse, and unfortunately for you, I am all too familiar with. Nevertheless, I will still oblige.

I am not discussing the merits and demerits of PTI's policies, and I have explicitly stated that PTI has inherited a struggling economy. However, my argument is very simple:

(a) In spite of the Asad Umar circus, most PTI supporters are adamant that PTI is on the right track when it comes to solving our economic problems and they are taking the right decisions. As a result, at some point in the future, we should see considerable improvement in our economic conditions which will allow PTI to fulfil the promises it made to the public.

For now, PTI can hide behind the performance of PMLN and PPP, but a time will come when they will have to be answerable for their own policies and outcome of the measures that they took to revive the economy.

(b) When can we expect PTI's corrective measures to show the improvement in our economic conditions? Again, no one is expecting Imran to come out and give a specific date. No one in the world can do that because there are so many external factors involved. However, there is always an estimation.

What does PTI aim to achieve economically after X number of years? If they fail to meet their targets, will they blame the previous governments or will they take responsibility for not delivering?

Unfortunately, PTI does not seem interested in taking responsibility for the future performance and that is why they keep coming up with vague terms like "it will take time", "you can't expect results overnight" etc. They have created a win-win situation for themselves - should they succeed, they will take all the credit, and should they fail, they will deflect all the blame on the previous governments.

People did not vote for PTI so that they can explain what mistakes the previous governments made; people voted for PTI so that they can take corrective measures and improve the economic conditions. If PTI fails to make things better or if they make things even worse, they will have to take full responsibility for their failure and not hide behind PMLN and PPP.

 

[Mamoon]

If i understand correctly-So you want the PTI to sort out the mess created over decades quickly and if they dont- you want losers that created the mess back in power? I am confused!

Again, no one is expecting PTI to get out of this mess "quickly". These vague statements like "you cannot expect results over night" and "it will take time" etc. are PTI's tactic to not take take any responsibility at any point. At some point in the future, looking back at the mistakes of other parties will not serve any purpose.

Eventually, PTI will have to take responsibility for their performance. When will that be? 5 years, 10 years, 20 years? It is not a hard question for any party or its supporters if they intend to deliver rather than hide behind the mistakes of other parties.

 

[Technics 1210]

As usual, you go off on a tangent and put words in other people's mouth without making an honest attempt to understand the POV of the other poster. This is your usual modus operandi when it comes to discourse, and unfortunately for you, I am all too familiar with. Nevertheless, I will still oblige.

I am not discussing the merits and demerits of PTI's policies, and I have explicitly stated that PTI has inherited a struggling economy. However, my argument is very simple:

(a) In spite of the Asad Umar circus, most PTI supporters are adamant that PTI is on the right track when it comes to solving our economic problems and they are taking the right decisions. As a result, at some point in the future, we should see considerable improvement in our economic conditions which will allow PTI to fulfil the promises it made to the public.

For now, PTI can hide behind the performance of PMLN and PPP, but a time will come when they will have to be answerable for their own policies and outcome of the measures that they took to revive the economy.

(b) When can we expect PTI's corrective measures to show the improvement in our economic conditions? Again, no one is expecting Imran to come out and give a specific date. No one in the world can do that because there are so many external factors involved. However, there is always an estimation.

What does PTI aim to achieve economically after X number of years? If they fail to meet their targets, will they blame the previous governments or will they take responsibility for not delivering?

Unfortunately, PTI does not seem interested in taking responsibility for the future performance and that is why they keep coming up with vague terms like "it will take time", "you can't expect results overnight" etc. They have created a win-win situation for themselves - should they succeed, they will take all the credit, and should they fail, they will deflect all the blame on the previous governments.

People did not vote for PTI so that they can explain what mistakes the previous governments made; people voted for PTI so that they can take corrective measures and improve the economic conditions. If PTI fails to make things better or if they make things even worse, they will have to take full responsibility for their failure and not hide behind PMLN and PPP.

I may go off on a tangent but you just vent emotive rhetoric which most of the time is irrelevant. Not a single word in your bluff and bluster above explains why the PKR is weakening; you have not outlined any direct relation/correlation between policies and currency.

Only ignorant and desperate folk blanket blame the incumbent government due to lack of understanding how economics, and in this case, currency markets work. You are the equivalent of the plebeians who blamed Labour for the Financial Crash in 2008 because of the effect in the UK.

Smart provide solutions to a problem, you provide problems to a solution.

Then again, you did vote PTI but support and justify corruption. Not sure how this works, but hey - only in your bubble does this make sense.

 

[The_Odd_One]

Had dollar went so high 2 years ago, PTI supporters would have blamed PMLN non-stop but since it is happening in Imran's tenure, it is easier to blame the past governments.

 

[Gharib Aadmi]

It was the right decision to let the rupee depreciate. Ishaq Dar caused massive damage to the economy by artificially inflating it for years. Whether its 150, 160, or 170 rupees to a dollar, it should be based on the market.

 

[rockyboy2018]

Tabdeeli aa gye hai !

 

[last_knight]

What's comparison of % devaluation of PKR against USD, during first year of last two govts ; PPP 2008-09, and PMLn 2013-14 compared to PTI 2018-19 ?

 

[slipcatch]

Had dollar went so high 2 years ago, PTI supporters would have blamed PMLN non-stop but since it is happening in Imran's tenure, it is easier to blame the past governments.

Always with “what would have been”. Lol

Until it had happened then it’s just an excuse and attempt to appear better than anyone who does not support corrupt Pakistani leaders.

 

[slipcatch]

Again, no one is expecting PTI to get out of this mess "quickly". These vague statements like "you cannot expect results over night" and "it will take time" etc. are PTI's tactic to not take take any responsibility at any point. At some point in the future, looking back at the mistakes of other parties will not serve any purpose.

Eventually, PTI will have to take responsibility for their performance. When will that be? 5 years, 10 years, 20 years? It is not a hard question for any party or its supporters if they intend to deliver rather than hide behind the mistakes of other parties.

Hypocrisy at display.

PTI has been in power for less than a year.

You have build a career on Pakpassion to criticize for the sake of criticism.

I’m sure PTI and PTI supporters will be the first one to take responsibility if PTI isn’t successful to make Pakistan better than the past two corrupt dynasties that had place Pak in current situation.

 

[Abdul]

Tabdeeli )

 

[Bewal Express]

Tabdeeli )

Please explain how the exchange rate is determined? Or are you like all these illiterate Nooras that run every time a question is asked?

 

[gkb101277867]

Pounds to Rupees!!!

What is this!!! I'm not one to follow economic news but got a huge shock when I found out the rupee has devalued to the point that there are 199 rupees for every pound!!

It was 130 just 3 years ago...

Is the rupee expected to fall even further?

 

[Angrez Pakistani]

What is this!!! I'm not one to follow economic news but got a huge shock when I found out the rupee has devalued to the point that there are 199 rupees for every pound!!

It was 130 just 3 years ago...

Is the rupee expected to fall even further?

Yes.

 

[Angrez Pakistani]

I wouldn't be surprised if the $ hits 200 Rupee mark and £ hits the 250 mark within the next couple of years.

 

[Rinnegan Sasuke]

Runaway dollar confounds money market

KARACHI: Despite assurance of the new governor of the central bank that there would be no free float, the rupee fell to a new record low on Wednesday as the US dollar hit an all-time high of Rs163 in interbank trading.

The day saw a decline of 3.8 per cent in the value of the rupee against the dollar. It has lost about 35pc since May 2018 when the dollar traded at Rs121.

The surprise big devaluation of the local currency took place after declaration by the State Bank of Pakistan governor that the exchange rate would be market-based and that the free float was not suitable for the country’s economy.

“There was no State Bank and no interference to bring calm in the volatile exchange rate market,” said a senior banker, who added that the dollar traded as high as Rs163 in the interbank market.

He said the market began trading the dollar Re1 higher than the previous day and soon it was felt that there was no barrier to move forward.

In his first press conference, the new SBP governor had assured that the central bank would interfere in exchange rate if the market became volatile; exchange rate will be market-based and that the free float does not suit the country’s economy.

The exchange rate remained almost unchanged, hovering around Rs157 for more than a week while the market was feeling that the dollar could see depreciation against the rupee in the near future.

“I am sure banks are making money. They have been buying dollars over the past 8 to 10 days expecting a big buying and they sold up to $250 million today,” said Zafar Paracha, Secretary General of the Exchange Companies Association of Pakistan.

He said there was no shortage of dollars in the market, while the open market has been selling surplus dollars to banks on an average $20m to $25m per day.

“I am sure the sudden devaluation of the local currency is the policy of economic managers, but it is difficult to find out the benefit of these devaluations,” said Mr Paracha.

The 35pc devaluation since May last year has a vast depressive effect on domestic trade and industry. Both the cost of production and margin of profits have shrunk for the competitive markets.

The central bank had recently said that the current account deficit — the biggest enemy to the economy — would fall by $7bn to stay at $13bn by the end of the current financial year. The deficit was $19.9bn last year.

However, the cut in import bill and reduced current account deficit could not support the local currency to get strength against the dollar.

“The open market rates remained below inter-bank rates, which shows there is no demand for the dollars but the sudden devaluation of the rupee has jolted the open market also,” said Malik Bostan, President of Forex Association of Pakistan.

He said he had no idea about the real value of the rupee in future.

The same question was put before the SBP governor and he said the market would determine the exchange rate.

https://www.dawn.com/news/1490668/runaway-dollar-confounds-money-market