Pakistan Economy: News & Discussion

[Lonewolf]

youtube algorithm wanted me to see this a few days back, seems to be an electrical wire making factory in pakistan. i am assuming this comes under informal economy.

has anyone seen similar operations in India?

My neighbour runs one , and yeah he is bpl

 

[Covfefe]

China agrees to rollover $4.2 billion Pakistan debt

www.deccanherald.com

 

[FalconSlayers]

Spoiler: Screenshot

China agrees to rollover $4.2 billion Pakistan debt

www.deccanherald.com

LMAO chinks will lose no oppurtunity to suck Pakistan dry, rollover does not mean a waiver it just means a renewal of loan

A rollover is the renewal of a loan. Instead of liquidating a loan on maturity, you can roll it over into a new loan. The outstanding principal and other components of the old loan are rolled-over with or without the interest outstanding on it.

I’m just waiting for State Bank of Paxtan to release the external debt figures as of March 2022 as they give quarterly updates about external debt situation. Almost half of Pakistan runs on debt and remittances

And (ch)youthias still believe Paxtan is richer than India

 

[karn]

Anyone know how one can short PKR ? Im thinking I Can skip this months SIP.

 

[Butter Chicken]

Ghabrana nahi hai

 

[FalconSlayers]

Ghabrana nahi hai

Pakistan’s currency has relaxed to 183, now it will go down further (as imports have become slightly cheaper and exports expensive).

 

[Abdus Salem killed]

Pakistan’s currency has relaxed to 183, now it will go down further (as imports have become slightly cheaper and exports expensive).

Meaning?

 

[Covfefe]

Meaning?

Means that with the international trade picking up- it'll be cheaper to import stuff than make it locally. Basically Pakistan will return it it's good old days of reckless imports

 

[FalconSlayers]

Meaning?

Means that with the international trade picking up- it'll be cheaper to import stuff than make it locally. Basically Pakistan will return it it's good old days of reckless imports

Pakistan’s current situation summed up
1. Their currency depreciates owing to higher CAD, Imports become expensive and Exports cheaper, this reduces demand for dallar.

2. The lower demand for dollar / higher demand for PKR then causes the currency to appreciate which then makes the imports cheaper and exports expensive which then further causes increased demand for dollar hence depreciation of PKR.

3. And this cycle keeps on repeating in Pakistan because of their poor economic fundamentals.

 

[AVERAGE INDIAN]

In a first, rupee breaches Rs185-mark over looming political uncertainty, stalled IMF programme

A representational image. — AFP/File

• Pakistani rupee closes at Rs185.23 in interbank market.
• "Pakistani rupee is depreciating because of uncertainty regarding continuity of IMF programme," analyst says.
• Currency dealers sys rupee is expected to remain under pressure in the coming week.

KARACHI: The Pakistani rupee plummeted to an all-time low against the dollar on Tuesday, closing at Rs185.23 in the interbank market during intraday trading, down Rs1.14 from Friday’s 184.09.
The local currency surpassed Rs185-mark for the first time in the history of Pakistan. The rupee has declined by nearly Rs7 against the greenback in the last month.




The Pakistani rupee has maintained its slump mainly because the US dollar is gaining strength against other major global currencies for the past few days. However, the recent decline came on the back of the uncertain political situation and stalled International Monetary Fund (IMF) programme.
Speaking to Geo.tv, Pakistan-Kuwait Investment Company Head of Research Samiullah Tariq said: “Pakistani rupee is depreciating because of uncertainty regarding the continuity of the IMF programme, which is dependent on the formation of the caretaker govt.”

A day earlier, in a brief statement, the Fund assured that it would continue to provide support to the “new formed government” and will involve in policy talks with them to enquire about their intentions about the loan.

Since the beginning of the current fiscal year, the rupee has dropped a massive 17.57% (or Rs27.69) as compared to the previous fiscal year’s close at Rs157.54 on June 30, 2021.

Meanwhile, the rupee has maintained a downtrend for the past 12 months. It has lost 21.64% (or Rs32.96) to date, compared to the 22-month high of Rs152.27 recorded in May 2021.

Meanwhile, other currency dealers said the rupee is expected to remain under pressure in the ongoing week on the unending political showdown in the country.

They said the demand for the dollar is normal in the market for import payments, which have become costlier on high prices of energy and commodities in the international market.

However, international donor institutions were watching the political situation in the country keenly. They would not decide until the political dust is settled, a dealer said.

Pakistan’s negotiations with IMF are also stalled and put on hold for the third time since the programme started in 2019 because of the political crisis in the country as the international institution would wait until the situation becomes clear on the political front.

Meanwhile, open market forex rates of other currencies against the Pakistani rupee are as follows:

Currency	Buying	Selling
Australian dollar	134.5	136.5
Canadian dollar	144	146
China yuan	23.55	23.95
Euro	200	202
Japanese yen	1.41	1.44
Saudi riyal	48.5	49.2
UAE dirham	49.5	50.4
UK pound sterling	237.5	240
US dollar	183.8	185.5
Source: Forex.com.pk

Harami Link Mujra Masala

In a first, rupee breaches Rs185-mark over looming political uncertainty, stalled IMF programme

Pakistani rupee closes at Rs185.23 in interbank market.Pakistani rupee is depreciating because of uncertainty regarding continuity of IMF programme, analyst says.Currency dealers sys rupee is expected to remain under pressure in...

www.geo.tv

 

[AVERAGE INDIAN]

Pakistan’s debt-to-GDP ratio highest in region at 86 percent

ISLAMABAD: The Asian Development Bank (ADB) on Monday said Pakistan’s debt-to-GDP ratio was the highest in the region at 86 percent in 2019, which further increased to 88 percent in 2020.

An ADB Institute report titled “COVID-19 and Economic Recovery Potential in the CAREC Region” stated that Pakistan has the third highest debt service that was, $15 billion or nearly 7 percent of the total for the CAREC (Central Asia Regional Economic Cooperation) region in 2020.

All other countries except Mongolia had debt service of less than $5 billion in 2020. For Pakistan in the baseline scenario related to accumulation of debt, the ADB assumes that the primary balance was close to zero and the historical real interest rate was 2.7 percent.

 

[AVERAGE INDIAN]

Pakistan: Nationwide blackouts begin as power crisis intensifies

The power crisis across Pakistan has intensified as the overall electricity shortfall reached 5000 megawatts, local media reported on Thursday.

The unannounced load-shedding has begun across the country as the electricity shortfall has reached 5,000MW, ARY News reported citing sources. The sources said that several power plants working on gas, coal and furnace oil have been closed. The duration of load-shedding in Punjab province has reached three to 10 hours.



Lahore Electricity Supply Company Limited (LESCO) is facing a shortage of 1000mw as the demand is 4,100mw and the available power is 3,100mw.

Currently, 610mw Engro Power Plant in Thar, Port Qasim’s power plant with a capacity of 310 is closed. Nuclear K2, K3, Chasnob, Liberty Power Plant, Guddu Power Plant are also facing shortages and not producing power at their full capacity, ARY News reported.

AL ARABIA NEWS

Pakistan: Nationwide blackouts begin as power crisis intensifies

The power crisis across Pakistan has intensified as the overall electricity shortfall reached 5000 megawatts, local media reported on Thursday...

www.khaleejtimes.com

 

[FalconSlayers]

 

[Abdus Salem killed]

I

Pakistan’s current situation summed up
1. Their currency depreciates owing to higher CAD, Imports become expensive and Exports cheaper, this reduces demand for dallar.

2. The lower demand for dollar / higher demand for PKR then causes the currency to appreciate which then makes the imports cheaper and exports expensive which then further causes increased demand for dollar hence depreciation of PKR.

3. And this cycle keeps on repeating in Pakistan because of their poor economic fundamentals.

I mean how does this effect the economy things will cheaper how does it affect the common paki

 

[FalconSlayers]

I

I mean how does this effect the economy things will cheaper how does it affect the common paki

Their currency depreciates = Pakistan’s nominal GDP being reduced = Pakis getting poorer day by day.

 

[Waanar]

Pakistan’s current situation summed up
1. Their currency depreciates owing to higher CAD, Imports become expensive and Exports cheaper, this reduces demand for dallar.

2. The lower demand for dollar / higher demand for PKR then causes the currency to appreciate which then makes the imports cheaper and exports expensive which then further causes increased demand for dollar hence depreciation of PKR.

3. And this cycle keeps on repeating in Pakistan because of their poor economic fundamentals.

How long, on average, does one such cycle last? Does it even have a timeframe or is it random in it's span?

I want to see the next sil of this silsila.
I'd bust a nut at the 200 PKR = 1 USD mark.

 

[indiatester]

Pakis still have some breathing space. But, if they don't take some good corrective actions during the next few months, they will be in trouble. I guess the PA will step in and give assurance to lenders.

 

[IndianYonko]

Hehehe. Good job immy chaan...

 

[Dark Sorrow]

Imran Khan is the greatest asset to India

 

[Dark Sorrow]

Imran Khan is the greatest asset to India

Reason why Pakistan have reduced anti-Indian terrorist activity. They are in serious trouble.