Devaluation of pakistani currency

The PTI blind supports still dream of a cycle going PM in Pakistan who will be punishing the corrupts. Who will start from his own home first. Who will make Aleema khan an example for others. Who will first pick their allies and the biggest daakoo of punjab and demand him resignation to avoid any possible influence on their cases (remember that was the high moral ground he was demanding from NS). In Naya Pakistan, the Clean PM will treat powerful and less powerful on equal grounds.

But please wake up.

@ Inamullah Khan sahib:

One KAFIR BABA JI, Albert Schweitzer says:

EXAMPLE IS LEADERSHIP.......

We all are aware of his past performance in various great organisations which immi founded in his career......

Structural reforms take a long time to be fruitful and visible...... we are too emotional nation and want result over night.....

It is what it is.....

I personally believe that Rs. Will get stronger in coming few days .... Although does not sound technically correct.



But this is my believe and guess too :)

Is a strong rupee or a weak rupee good for the economy?

Unfortunately, the only possibility for a stronger PKR, if that ever happens will be artificial as on last PKR depreciation, govt. has made it mandatory for the State Bank to consult the Govt. before adjusting Forex rates (bye bye to the autonomy of institutes as was promised during and before the election campaign). Don't be surprised if we see same tactics employed by Dar to drag USD to 98 by borrowing USDs and when the borrowed USDs burnt off PKR got murdered in a few months time... Saudi & UAE loan comes at a price of +3% and 2.8% per annum.

Weaker/Undervalued PKR or currency only becomes useful when exports are increasing as is the case with China. On export fronts we are also loosing as exports have been dropped in last 6 odd months.

Some local baba ji has predicted dollar going to hit 175 mark. You can reject this prediction, but I would keep all my options open.

Pakistan is living beyond its means pure and simple. The massive foreign debt is going to haunt any future government since even debt servicing will be difficult unless exports/remittances are boosted.

USD hitting the 140+ mark and seems to be progressing before the budget times...

Usd rising any further will be a disaster for us as far as inflation is concerned

Unfortunately, 150 Mark may not be too distant. Any intake from IMF will lead to the Devaluation as IMF has been insistent on a free float of PKR that settles somehwere around 145 to 150 mark.