Http://tribune.Com.Pk/story/645537/cash-in-finance-minister-warns-exchange-rate-about-to-fall/
Kindly comment if dollar drops than more value of rupee and do you think that plots will loose money aswell.
Janab H-T sb
Desperate attempt to increase the foreign reserve and if u read his entire statement "We ll bring to 1998-1999 level" is the joke of 2013.
If it happens that you ll loose overseas Pakistani because their income are same but now they need more dollar to get less Pakistani rupees. For Pakistani customers things ll be good as inflation ll be decreased and now they save and invest more money .
Only import items should be cheap because you need dollar or foreign currencies to buy them.
Either way I don’t see property prices going much higher in the short term at least at the prices have had a good run already. It can only be the big investors that have pushed prices up as an average person in Pakistan has not seen his real income increase due to inflation and neither has a Pakistani abroad due to the world economy, if he still has a job abroad.
Usually dollar increase or decrease not effect the plot values but if investment is large say 10 million and 1 dollar is equal to 1 you invest one Lakh dollar and buy a plot in 1 crore dollar value fall and become 98 usually plot value does not drop it will remain same but usually it’s other way around rupee value drops every day for example last year it was 88 and who invest 1lakh dollar and buy a plot and now plot value is cror he is loss of 8 Lakh as rupee value drop but in Pak rupee he is getting 12 Lakh profit.But if he keep money in dollar 1lakh dollar is 1cror 8 Lakh.
I do believe that dollar weakening will effect the exporters in a good way but importers will loose out .... And yes the ppl working abroad will suffer aswell.... @ Rashid so the prices will decrease as per your post. Thanks for the info
I think they are trying to make a desperate effort in this regard... So that people will increasingly move on to sale their US dollars and get rupees... In that case they can actually achieve some increase in value of rupee, already one can see the effect... But I don't see any strong reasons (in pak economy currently) to believe that it will be a permanent or steady stabilization of pkr.
I would request other senior members like MBS & PK1 to give their valuable insight on this issue... This is important for every investor (overseas or local) to fully understand
In the long run, rupee will continue to devaluate without doubt
Apparently, finance minister is trying to play with the minds of people holding dollars. And in our country such tricks work well. It seems he will succeed to some extent. The negative side of this trivk is it may slow down the inflow of dollars in short term. If they are serious they can work hard on core issues of energy shortage and law and order. In long term dollar rate can be stabilized only by converting deficit to surplus. Rest Allah know the best
@ naveed.... Correct... That's what I am mentioning that for temporary period his tricks will infact work (as you can see the effect that dollar downslide from 110+ to 107.50 now)... But on permanent and long term basis.... Only "beyaan baazi" and threats/warnings like these will not work well, infact it will create problems for govt to bring anymore investors in the country due to trust... Long term stabilization will only depend whether our country comes out of crisis or not... Like corruption containment, law and order situation, correct economic policies, energy shortage minimization...depletion of law and order & terrorism...
Well currently from a commoners eye perspective in a short span, it looks very difficult to happen meaningfully to have any effect... But nothing is impossible in this world.
They can influx dollars inject them to weaken dollar short term, but in the long term, they don’t have the capability to control Dollar, Dollar will crose 120 in 6 months time.
I am not a financial expert, but for the time being I don't see any practical steps by current govt which will increase price of rupee against dollar. But if it happens, it will be good for our economy and common men.
Regards
@ Mr. Khan
Yes there is not much anything solid in view e.g. They are so far failed to hold any decisive talks with Taliban or to take any action... Same is the case with Baluchistan issue... There is no circling of corrupt and looter mafia esp. From the past recent govt... So I don't see anything substantially positive going in favor of improvement of Pakistan economy.
Well sudden appreciation and depreciation of a currency is not recommended for any economy but stability is required. Let say if rupee will appreciate suddenly and tremendously our exporter will be discouraged and certainly again gap between value of import and export will be high and rupee will depreciate again. It’s a vicious cycle. So stability is recommended in long term not appreciation or depreciation. One of our contributors said it will not affect value of land but the matter of fact it matters both way. However as Mr. Nasir and Mr. Khan said there is no practical signs of appreciation of rupee in long term and it will go high again in near future. By June 2014 one dollar will be equal to at least 115-120 rupees as per IMF recommendations.
I posted 2 times over this section but its not displayed along with a message " your post is pending for approval and will be reviewed by Zameen editorial team shortly" :)… Is there any policy of zameen.com to hold posts for review ?
This will have no effect on the real estate market, as already shown people will just increase their demand prices by a couple of lakhs to even the cost! Most investors in Pakistan are foreign investors and they are not stupid, to sell all their assets at losses based on exchange rate! They will just increase their demand price, this will add more artificial hike to the societies. Hence why now is ideal time to buy if your a foreign investor as currently its a buyers market - not a sellers market!
I think its a game played by the govt to clean up the money in the black market. PKR will slow down this time next year and I think we have seen the worst part of it for now.
GSP status approved now free export to the whole of europe is a very big boost to our economy. Which will bring huge profits estimated up to 1 billion dollars. It has been approved for next few years i think… So may be Darr sahab was being honest for a change
I think that the next 12 months is the most difficult time for the rupee and then it would stabilise. The rupee has been falling because the government has been printing notes to repay debt it owes to IMF. It is a shame that the rulers get loans and put money into their swiss accounts and the average person has to pay the price through inflation. The average person pays for corruption not only through having his taxes misspent and stolen but also in the form of inflation.
I think that the next 12 months is the most difficult time for the rupee and then it would stabilise. The rupee has been falling because the government has been printing notes to repay debt it owes to IMF. It is a shame that the rulers get loans and put money into their swiss accounts and the average person has to pay the price through inflation. The average person pays for () not only through having his taxes misspent and () but also in the form of inflation.
My post went into pending and I had to remove corruption and looted in order to post. Does anyone even bother listen to their users on this website and what we the users are saying about the website?
@ Arshad,
I had posted two posts today morning here, but it also went pending.