عمران خان نے جو 5.37 فیصد گروتھ کی ہے اس سے غربت میں اضافہ ہوا ہے۔ پٹواری
- Thread starter arifkarim
- Start date
arifkarim
Prime Minister (20k+ posts)
arifkarim
Prime Minister (20k+ posts)
Dude remittances come in foreign money such as dollar and is converted to rupees by banks or money exchangers. Original dollars stay in the open forex market as it's all electronic money. We overseas Pakistanis don't send remittances as cash to Pakistan anymore
Okara
Prime Minister (20k+ posts)
On what basis the conversion is done? As the money remains with government then from where government is paying for the USD?
arifkarim
Prime Minister (20k+ posts)
Exactly. Local Pakistanis don't use foreign currency such as dollars for trade and payments. That's why banks and money changers keep foreign currency that come as remittances and convert it to rupees for local Pakistani users. Okara bro please study how it works
What Is an Exchange Rate?
An exchange rate determines how much your currency is worth in another country. Use our examples to find out more about how different exchange rates work.
Okara
Prime Minister (20k+ posts)
Let's assume you are government of Pakistan and keeping USD, from where you will pay in Pak Rs? Keep in mind your source of earning is Taxes?Exactly. Local Pakistanis don't use foreign currency such as dollars for trade and payments. That's why banks and money changers keep foreign currency that come as remittances and convert it to rupees for local Pakistani users. Okara bro please study how it works
What Is an Exchange Rate?
An exchange rate determines how much your currency is worth in another country. Use our examples to find out more about how different exchange rates work.www.thebalance.com
arifkarim
Prime Minister (20k+ posts)
Foreign money remains in the central bank, commercial banks and money exchangers. Govt pays its external debt through primarily Central Bank but can choose to take money from commercial banks in an emergency. Pakistan did so right after 1998 nuclear tests when it froze all foreign currency accounts in commercial banks
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arifkarim
Prime Minister (20k+ posts)
Govt doesn't pay external debt from its own accounts. It takes the USD from Central Bank reserves. And if emergency from commercial banks foreign currency accounts.
Govt however does pay debt repayments in PKR from its own accounts to local commercial banks, money that it collects through taxation
Okara
Prime Minister (20k+ posts)
As the earning of government is in Pak Rs then how they are able to get USD from State Bank?
Siberite
Chief Minister (5k+ posts)
یہ جناح کیپی ، شکل سے مسکین لگتا ہے مگر ہے بڑا گھُنو ۔ عمران خان کی ساری رگوں وگوں سے واقف ہے ۔ دروازہ کھولو تو زھر کا پتیلا ھر دم چولھے پر چڑھائے رکھتا ہے ۔ لیکن منہ میں عمرانی بادام ڈالے دانتوں کا امتحان لیتا رھتا ہے ۔ معلوم نہیں منہ میں پھلی ہے یا مونگ پھلی ۔ اپنے کو کیا ہے عمران جانے یا بادام جانے ۔
arifkarim
Prime Minister (20k+ posts)
State Bank or central bank is where Pakistan keeps all its foreign exchange reserves. That's the money being looted / destroyed by past govts when they artificially overvalued PKR at the cost of depleting reserves, bankrupting economy every 5 years
This govt has now passed new legislation under orders from the IMF to ensure current and future govts won't be allowed to do that disaster again. Now govts can only use state bank reserves to pay debt repayments. Nothing else.
Ishaq Dar was warned about holding an artificial exchange rate: Deputy Chairman Senate - Mettis Global Link
Speaking to Karachi Chamber of Commerce and Industry, Deputy Chairman Senate, Salim Mandviwala, stressed that the Ex-Finance minister Mr. Ishaq was warned not to artificially maintain the dollar-rupee exchange rate. Ignoring those warnings, the government continued to pump about 7 to 8 billion...
mettisglobal.news
shujauddin
Minister (2k+ posts)
Bhosree This is how it is :
U gain 5 percent of one thing by losing 80 percent of another? The economy is totally destroyed.
5% percent growth compared to Rupee's depreciation at 100 % inflation rate of more than 13 percent, thats a lost game man.
Its like this Youthia: You are bragging that you scored 5 goals in soccer but what you are not telling/acknowledging is that the other team has scored 10 goals against you and have already won the match ! aap panch gol apni gaaf may logay? similarly 5 percent growth is nothing compared to the overall damage they have caused to the country and its economy.
Okara
Prime Minister (20k+ posts)
The remittances are in USD and lets assume if this USD is used by Government of Pakistan then from where the government is getting Pak Rs given to end users against the USD?State Bank or central bank is where Pakistan keep all its foreign exchange reserves. That's the money being looted / destroyed by past govts when they artificially overvalued PKR at the cost of depleting reserves, bankrupting economy every 5 years View attachment 4947
This govt has now passed new legislation under orders from the IMF to ensure current and future govts won't be allowed to do that disaster again
Wake up Pak zaheer2003 miafridi The SaneIshaq Dar was warned about holding an artificial exchange rate: Deputy Chairman Senate - Mettis Global Link
Speaking to Karachi Chamber of Commerce and Industry, Deputy Chairman Senate, Salim Mandviwala, stressed that the Ex-Finance minister Mr. Ishaq was warned not to artificially maintain the dollar-rupee exchange rate. Ignoring those warnings, the government continued to pump about 7 to 8 billion...
arifkarim
Prime Minister (20k+ posts)
Khotay Patwari you call this economy destroyed that just grew at 5,37 percent with very low external deficit?
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arifkarim
Prime Minister (20k+ posts)
Again read here. Every country has a forex market which is part of international forex market. Anybody can buy and sell any currency in that market.
What Is an Exchange Rate?
An exchange rate determines how much your currency is worth in another country. Use our examples to find out more about how different exchange rates work.
If State bank believes value of Pakistani currency is too high, it can print and sell rupees in exchange for dollars in the open market thus lowering its price. Reverse is done when State Bank believes value of the currency is too low. Then it sells its dollar reserves in exchange for rupee in the open market, thus increasing its price. It's all demand and supply basic economics. Money and currencies are continuously in circulation. It's their demand / supply that decides their worth
arifkarim
Prime Minister (20k+ posts)
Bhosree Khotay Patwari
When you artificially overvalue rupee for 4 long years, depleting foreign exchange reserves in the process, what do you thing is gonna happen? You either go bankrupt or forced to devalue currency to stabilize the economy. Govt could have declared the country bankrupt in 2018 but instead chose less painful option of devaluation. Bankruptcy is the worst thing that can happen. If you want to see what happens after bankruptcy, check economy of Lebanon or Venezuela. There inflation hit 100 to 1000 percent after declaring bankruptcy Khotay Patwari
Okara
Prime Minister (20k+ posts)
No more argument. U don't want to give answer to my question. If government can print money then what is the purpose of collecting Tax?Again read here. Every country has a forex market which is part of international forex market. Anybody can buy and sell any currency in that market.
What Is an Exchange Rate?
An exchange rate determines how much your currency is worth in another country. Use our examples to find out more about how different exchange rates work.
If State bank believes value of Pakistani currency is too high, it can print and sell rupees in exchange for dollars in the open market thus lowering its price. Reverse is done when State Bank believes value of the currency is too low. Then it sells its dollar reserves in exchange for rupee in the open market, thus increasing its price. It's all demand and supply basic economics. Money and currencies are continuously in circulation. It's their demand / supply that decides their worth
Also if I am money exchanger in Pakistan and buying USD and paying Pak Rs then I am the owner of USD and government and this can't be counted as reserve.
arifkarim
Prime Minister (20k+ posts)
Govt cannot print money. Only state bank can to cover the budget deficit of the govt. This money printing causes massive inflation. That's why IMF ordered current govt to make a law and stop this practice of budget funding through the printing press of state bank
arifkarim
Prime Minister (20k+ posts)
That's right. Foreign currency held by commercial banks or money exchanges is not considered state bank reserves. That's why they are counted separately.
Okara
Prime Minister (20k+ posts)
Let's assume if government wanted to borrow this USD from commercial bank, will they pay them in Pak Rs or USD? Also what will be source of money of GoP to pay back loan. Printing of currency is not a solution else US might have done this instead of having over USD100tr loan.
