History/Reason - Price of Rupee vs Dollar

[muhammadadeel]

Reference: https://en.m.wikipedia.org/wiki/Economy_of_Pakistan

The Pakistani Rupee was pegged to the Pound sterling until 1982, when the government of General Zia-ul-Haq, changed it to managed float. As a result, the rupee devalued by 38.5% between 1982/83 many of the industries built by his predecessor suffered with a huge surge in import costs. After years of appreciation under Zulfikar Ali Bhutto and despite huge increases in foreign aid the Rupee depreciated.


Without knowing history one is blind. Zia-ul-Haq made a this one stupid mistake and we are all suffering. Now is the time to remove PKR from managed float. Then slowly bring it's true value back to somewhere around 1 USD = 10 PKR something over the next 20 years.

With this insight I hope you can talk about it and help others understand why we are so .... .. into a hell hole over this issue.

 

[GreenMaple]

The real murderer of Pak economy (and the dollar) was Z. A. Bhutto's stupid socialist agenda when he nationalized all banks, insurance companies, textile and manufacturing industry. He destroyed the basic structure of financial system, and as a result the economy hit the ground from which we still haven't recovered.

BTW the annual GDP growth rate during Ayub Khan's rule was an unheard of 7-8%, and the dollar at 3.75 Pak rupees. Pakistan was an economic role model of the world. In fact, South Korea team came to Pakistan to learn on how to structure the economy.

 

[muhammadadeel]

Still the base was not eroded until Zia-ul-Haq removed the peg to pound sterling. That led to devaluation hence showing the Pakistani brains the best money can be made abroad.

Scandinavian countries work with a socialist system quite successfully. Socalism works when the HUGE revenue generating industries are state owned, this helps with taxation and reinvestment in growth. Then against Scandinavia is the word there.

The real murderer of Pak economy (and the dollar) was Z. A. Bhutto's stupid socialist agenda when he nationalized all banks, insurance companies, textile and manufacturing industry. He destroyed the basic structure of financial system, and as a result the economy hit the ground from which we still haven't recovered.

 

[GreenMaple]

Still the base was not eroded until Zia-ul-Haq removed the peg to pound sterling. That led to devaluation hence showing the Pakistani brains the best money can be made abroad.

Scandinavian countries work with a socialist system quite successfully. Socalism works when the HUGE revenue generating industries are state owned, this helps with taxation and reinvestment in growth. Then against Scandinavia is the word there.

Still the base was not eroded until Zia-ul-Haq removed the peg to pound sterling. That led to devaluation hence showing the Pakistani brains the best money can be made abroad.

Scandinavian countries work with a socialist system quite successfully. Socalism works when the HUGE revenue generating industries are state owned, this helps with taxation and reinvestment in growth. Then against Scandinavia is the word there.

Bhutto instead adopting Scandinavian model opted to emulate USSR socialist and Chinese communist model. We all know what happened to USSR. Chinese smartly abandoned communism and embraced pseudo-capitalist model.

 

[jee_nee_us]

Bhutto killed economy in the late 70s , currency exchange rate isnt everything. For instance , the afghan currency is stronger than the japanese currency but when we talk about economy japan is a million years ahead. Pakistan was a role model for other countries of asia in 60s when it comes to economic growth despite the wars but bhutto's idea of becoming a GOD brought us to rock bottom.

1 usd = 107.72 japanese yen
1 usd = 80.10 afghani

 

[muhammadadeel]

Bhutto instead adopting Scandinavian model opted to emulate USSR socialist and Chinese communist model.

I agree with that point. We label socialism as communism in Pakistan, two big different things.

 

[muhammadadeel]

Why wud any Skilled Pakistani doctor / engineer go abroad for WHAT? Is it not money than what.

Exchange rate is everything, that is why good people leave Pakistan.

Bhutto killed economy in the late 70s , currency exchange rate isnt everything.

 

[Sunbeam]

Reality of zilfiqar Ali Bhutto

 

[Shareef]

Reality of zilfiqar Ali Bhutto

Fully agree. Bhutto destroyed the social fabric of Pakistan. Pitted classes against each other instead of removing class system. Talked about rights of poor but never about their responsibilities causing problems for the poor in the long run. He used emotions of the poor to gain and stay in power but was never sincere to them in the real sense. He was a big hypocrite who did damage to Pakistan no less than any other national criminal of this country.

 

[muhammadadeel]

کسی کی ذات نے کیا معاشرے میں گند مچایا یہ علیدہ موضع ہے

پیسہ کی قدر کا کھلواڑ بحرحال ضیاالحق ہی نے کیا
​

Fully agree. Bhutto destroyed the social fabric of Pakistan. Pitted classes against each other instead of removing class system. Talked about rights of poor but never about their responsibilities causing problems for the poor in the long run. He used emotions of the poor to gain and stay in power but was never sincere to them in the real sense. He was a big hypocrite who did damage to Pakistan no less than any other national criminal of this country.

Reality of zilfiqar Ali Bhutto