"Pakistan had twice food inflation than rest of the region" Uzair Younus

Desprado

Minister (2k+ posts)
That is what happens when a currency devalues without any reason and try to be over smart of everything.

Even default Sri Lanka is better than Pakistan




My question i think i was that was it better that Pakistan defaulted like Sri Lanka and avoided this market bases exchange?
 
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miafridi

Prime Minister (20k+ posts)
That is what happens when a currency devalues without any reason and try to be over smart of everything.

Even default Sri Lanka is better than Pakistan




My question i think i was that was it better that Pakistan defaulted like Sri Lanka and avoided this market bases exchange?

You haven't taken into account Pakistan's economic crisis, Pakistan had limited to no fiscal space as that of the other countries in question, as well as the fact that pandemic got out of control in India after April 2021, not before that.
 

Desprado

Minister (2k+ posts)
You haven't taken into account Pakistan's economic crisis, as well as the fact that pandemic got out of control in India after April 2021, not before that.
Food inflation ki bat horahai ha.

Sri Lanka defaulted and managed to have 6.25% inflation ,where as Pakistan food inflation stayed to double.

Nothing in the world can stop inflation if the currency devalues 1 rupee every single day.
 

miafridi

Prime Minister (20k+ posts)
You haven't taken into account Pakistan's economic crisis, Pakistan had limited to no fiscal space as that of the other countries in question, as well as the fact that pandemic got out of control in India after April 2021, not before that.

2ndly you never reply to the question as to how Pakistan could keep dollar at a fixed/controlled rate(like Ishaq Dar) when it itself was craving for more dollars to keep things rolling?

Or you are asking for Pakistan to throw all the reserved money into stabilizing the dollar artificially(like Ishaq Dar) but then after a couple of months go on begging for dollars again and another round of sudden and steep inflation?
 

miafridi

Prime Minister (20k+ posts)
Food inflation ki bat horahai ha.

Sri Lanka defaulted and managed to have 6.25% inflation ,where as Pakistan food inflation stayed to double.

Nothing in the world can stop inflation if the currency devalues 1 rupee every single day.

And how do you stablize the currency without having any dollars?

Or you are asking for Pakistan to throw all the reserved money into stabilizing the dollar artificially(like Ishaq Dar) but then after a couple of months go on begging for dollars again and another round of sudden and steep inflation?
 

miafridi

Prime Minister (20k+ posts)
Food inflation ki bat horahai ha.

Sri Lanka defaulted and managed to have 6.25% inflation ,where as Pakistan food inflation stayed to double.

Nothing in the world can stop inflation if the currency devalues 1 rupee every single day.

While Food Inflation in rest of the world went high because of only a couple of reasons like fuel prices and corona effect, it was higher in Pakistan than the rest of the world because of some added reasons like devaluation, and high production cost due to expensive electricity of LNG, Furnace oil, IPP's, and capacity payment deals etc.
 

Desprado

Minister (2k+ posts)
While Food Inflation in rest of the world went high because of only a couple of reasons like fuel prices and corona effect, it was higher in Pakistan than the rest of the world because of some added reasons like devaluation, and high production cost due to expensive electricity of LNG, Furnace oil, IPP's, and capacity payment deals etc.
Sri Lanka has biggest devaluation from 182 to 199. They managed 1000s time better than Pakistan.
 

FahadBhatti

Minister (2k+ posts)
PTI has failed miserably in controlling inflation and esepcially food inflation , The food inflation went as high as 20 percent last year and this year too its averaging more than 10. For an agricultural country like pakistan the inflation is way too high.
 

Desprado

Minister (2k+ posts)
PTI has failed miserably in controlling inflation and esepcially food inflation , The food inflation went as high as 20 percent last year and this year too its averaging more than 10. For an agricultural country like pakistan the inflation is way too high.
Food inflation was worse in PPP also. However, PPP did the impossible that they PPP reached reached 31.19 billion dollar export in 2012-2013 FY. PTI had to devalue 80% of that currency to achieve this level in FY 21.

PTI Should hire that mind behind those export mechanism.
 

arifkarim

Chief Minister (5k+ posts)
Premium Member
Food inflation was worse in PPP also. However, PPP did the impossible that they PPP reached reached 31.19 billion dollar export in 2012-2013 FY. PTI had to devalue 80% of that currency to achieve this level in FY 21.

PTI Should hire that mind behind those export mechanism.
Devaluation was needed to stop ballooning import bill of 60 billion dollars and 20 billion dollars current account deficit as left by your Pmln. It had nothing to do with exports Patwari
 

Desprado

Minister (2k+ posts)
You can't control inflation
You do not control inlfation. You reduce it. Ever since PTI came these is no reduction and wait for August end inflation number that 100% 14% inflation number. You see how Hammad Azhar shifts 11 rupee devalaution in 2.5 months on PPP and PMLN in NA and Shaukat Tarin will not interviews now. He has stopped.
 

arifkarim

Chief Minister (5k+ posts)
Premium Member
You do not control inlfation. You reduce it. Ever since PTI came these is no reduction and wait for August end inflation number that 100% 14% inflation number. You see how Hammad Azhar shifts 11 rupee devalaution in 2.5 months on PPP and PMLN in NA and Shaukat Tarin will not interviews now. He has stopped.
Ideal inflation is 5 to 6 percent. Govt cannot do much here as it has to increase imports to 60 billion dollars to meet demand, money Pakistan doesn't have
 

Desprado

Minister (2k+ posts)
Ideal inflation is 5 to 6 percent. Govt cannot do much here as it has to increase imports to 60 billion dollars to meet demand, money Pakistan doesn't have
You want to bet that inflation in August will in double digit? If i win you stop posting nonsense for good. Ok?
 

miafridi

Prime Minister (20k+ posts)
Sri Lanka has biggest devaluation from 182 to 199. They managed 1000s time better than Pakistan.

No 2 economies can be described in just a single sentence. The dynamics of economies are completely different, changing one indicator in one economy can have different result than it can have for another.

Food Inflation in Sri lanka in June 2021 was around 11-pct and you call it 1000 times better than Pakistan? Even if it was better than Pakistan you could call it a little better not 1000 times better. Why do you have to make an exaggerated claim just for the sake of argument?
 
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arifkarim

Chief Minister (5k+ posts)
Premium Member
You want to bet that inflation in August will in double digit? If i win you stop posting nonsense for good. Ok?
Depends on the kind of inflation. If it's due to money printing then govt can do something about it. If it's due to international inflation (high cost of oil) then govt cannot do anything.
 

Desprado

Minister (2k+ posts)
No 2 economies can be described in just a single sentence. The dynamics of economies are completely different, changing one indicator in one economy can have different result than it can have for another.

Food Inflation in Sri lanka in June was around 11-pct and you call it 1000 times better than Pakistan? Why do you have to make an exaggerated claim just for the sake of argument?
What dynamics? They are defaulted and they cannot pay 1 billion dollar euro bond at 27th July. Fitch, Morgan and Moodys has given -ccc. All dynamics changed when PTI. PTI raped Pakistan's economy with naive, inexperience, knew jerk reactions, over reactions and immaturity.

Did not need to fire Hafez Sheik before July and did not need make Asad Umar FM. Shaukat Tarin is Misbha version of FM.
 

miafridi

Prime Minister (20k+ posts)
Food inflation was worse in PPP also. However, PPP did the impossible that they PPP reached reached 31.19 billion dollar export in 2012-2013 FY. PTI had to devalue 80% of that currency to achieve this level in FY 21.

PTI Should hire that mind behind those export mechanism.

I am saying this again, that why do you have to point to exaggerated/false figures to make a statement? Dollar already started on the declining path since the beginning of 2018 and had declined as much as 129 on July 27 when even the election results weren't clear. But you are calling the devaluation from 129 to 160 as 80% devaluation. Not to mention that the economic time bomb PML-N had set was already going to take the dollar to 160 and there was no way stopping it, and it wasn't PTI's fault.
 
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