Pakistani currency in US$ from1972 till 2009

[Mujtaba Zaidi]

Pakistan has proved to be a very volatile country in every aspect.
Here is a list of the years and leaders and the value of Pakistani currency in US$ in their eras..


Year Leader US$ IN PK
Rupees
1972 Z.A BHUTTO 4.7
1974 // 9.9
1983 Zia-Ul-Haq 13.1
1987 // 17.7
1990 B.Bhutto 24.0
1991 N.Sharif 25.0
1994 B.Bhutto 30.6
1996 // 40.3
1997-99 N.Sharif 53.0
1999-2008 Musharraf 62.0
2009 Zardari 84.4



Source-Pakistan and Gulf Economist
Edition-2010- May 17-23


Notice that in Dictatorship eras the exchange rate was most stable ...
What democracy has given us??

 

[YAHYA87]

Pakistan has proved to be a very volatile country in every aspect.
Here is a list of the years and leaders and the value of Pakistani currency in US$ in their eras..


Year Leader US$ IN PK
Rupees
1972 Z.A BHUTTO 4.7
1974 // 9.9
1983 Zia-Ul-Haq 13.1
1987 // 17.7
1990 B.Bhutto 24.0
1991 N.Sharif 25.0
1994 B.Bhutto 30.6
1996 // 40.3
1997-99 N.Sharif 53.0
1999-2008 Musharraf 62.0
2009 Zardari 84.4



Source-Pakistan and Gulf Economist
Edition-2010- May 17-23


Notice that in Dictatorship eras the exchange rate was most stable ...
What democracy has given us??

I think you should also include the fixed exchange rate and semi fixed exchange rate as during Bhutto their was a fixed exchange rate in Pakistan but after Bhutto till now its semi fixed exchange rate...anyways nice data you have compiled of Pakistan's currency...

 

[greywolf]

no if a comparison is required ... it would be a better comparison to see Dollar vs. other international currencies and Dollar vs. PKR. Even when Dollar was falling steep down against Sterling and or Euro ... PKR was still losing momentum.

 

[LeftBrain]

so, what does it telling us?
How we concluded that dollar was stable under army? what working was used? can you share that please?

 

[forzeb]

nice comparrison mate but unfortunatly i am working in uk and i hate to send my money to pakistan cause my money will be stolen

 

[Mujtaba Zaidi]

so, what does it telling us?
How we concluded that dollar was stable under army? what working was used? can you share that please?

By simply looking at the figures.Figures in dictatorship eras...However it must be noted that Pakistan's exchange rate has been pegged against US$,but when the US$ fell in value Pakistani currency did not raise against it.It means that we weighted our currency only against US$.So it must be recognised that if US$ falls in international market Pakistani currency will also fall.,.This is the most worrisome fact for us..

 

[Mujtaba Zaidi]

I think you should also include the fixed exchange rate and semi fixed exchange rate as during Bhutto their was a fixed exchange rate in Pakistan but after Bhutto till now its semi fixed exchange rate...anyways nice data you have compiled of Pakistan's currency...

True Yahya Bhai..But it would require a deep knowlege for the subject and here we are trying to communicate to layman yahya bhai...
People who do not understand the economics will need to be explained.

 

[Mujtaba Zaidi]

no if a comparison is required ... it would be a better comparison to see Dollar vs. other international currencies and Dollar vs. PKR. Even when Dollar was falling steep down against Sterling and or Euro ... PKR was still losing momentum.

Why PKR was losing momentum is because it is pegged only against US$ and not in the basket of other currencies..

 

[LeftBrain]

By simply looking at the figures.Figures in dictatorship eras...However it must be noted that Pakistan's exchange rate has been pegged against US$,but when the US$ fell in value Pakistani currency did not raise against it.It means that we weighted our currency only against US$.So it must be recognised that if US$ falls in international market Pakistani currency will also fall.,.This is the most worrisome fact for us..

I dont think it is a fair statement. If we really want to see how currency performed we will have to look at dollar exchange value at the start of any government and at the end of that government and then do a median to see how much it fell (or rise) per year.

For example, lets assume 50 PKR = 1 USD at the time when Mr. XYZ took power
and it was 60 PKR = 1 USD when he left government. so exchange value dropped by 10 PKR.
lets assume he was in power for 5 years.
So currency depreciation will be 10 / 5 = PKR 2 per year.

If we do this simple test for every body we will be able to see how currency performed.

And this is not the only factor. We should also look at how foriegn donors react to our governments. US for example support dictatorship in Pakistan, provide more support, more donation and more funding and support our economy as compared to democratic governments, for obvious reasons. So currency performance gets affected by US influence of economy as well. In dictatorships we also tend to recieve larger funds, some time to fight Russia in Afghanistan and create Taliban (under Zia ul haq) and some time to fight the same Taliban and kill them (Under Musharraf).

How are you going to incorporate it into your "analysis".

 

[Aatif_ltd]

Pakistan has proved to be a very volatile country in every aspect.
Here is a list of the years and leaders and the value of Pakistani currency in US$ in their eras..


Year Leader US$ IN PK
Rupees
1972 Z.A BHUTTO 4.7
1974 // 9.9
1983 Zia-Ul-Haq 13.1
1987 // 17.7
1990 B.Bhutto 24.0
1991 N.Sharif 25.0
1994 B.Bhutto 30.6
1996 // 40.3
1997-99 N.Sharif 53.0
1999-2008 Musharraf 62.0
2009 Zardari 84.4



Source-Pakistan and Gulf Economist
Edition-2010- May 17-23


Notice that in Dictatorship eras the exchange rate was most stable ...
What democracy has given us??

I agree. the guy stayed in power for 8+ years and oil prices in Pakistan were stable when internationally they reached $100+ . What i dont understand is when these so called democratic $#$#$# don't care for the people. Whats the damn use for these sham elections. In the past year, total annual wheet consumption has DROPPED. This is the damn democracy u wanted? Is qom ko purani adat hai. Bas kamnon ke jote chatne ki adat hai. Jo unkelye kam karta hia usse laat marte hain.
Now they are crying for that feudal lord bhugti.
The only thin i didnt like about Musharraf is that he was not a true dictator, or else these SOBs would have been rotting in the grave.

 

[Rana Tahir Mahmood]

The currency value of any country is based on the international market forces and the stability of country's economy. The main reason for devaluation of Pak. Rs. is the weak and false economic indicators. If the practice of writing off the loans of the influential dignitaries is common by our financial institutes then what else we can expect.

 

[Mujtaba Zaidi]

The currency value of any country is based on the international market forces and the stability of country's economy. The main reason for devaluation of Pak. Rs. is the weak and false economic indicators. If the practice of writing off the loans of the influential dignitaries is common by our financial institutes then what else we can expect.

True Rana Bhai..But you see if Pakistani governmnt does not distort international exchange rate market operations,Others indirectly do that by orchestrating any discouraging incident for business environment.

 

[Mujtaba Zaidi]

I dont think it is a fair statement. If we really want to see how currency performed we will have to look at dollar exchange value at the start of any government and at the end of that government and then do a median to see how much it fell (or rise) per year.

For example, lets assume 50 PKR = 1 USD at the time when Mr. XYZ took power
and it was 60 PKR = 1 USD when he left government. so exchange value dropped by 10 PKR.
lets assume he was in power for 5 years.
So currency depreciation will be 10 / 5 = PKR 2 per year.

If we do this simple test for every body we will be able to see how currency performed.

And this is not the only factor. We should also look at how foriegn donors react to our governments. US for example support dictatorship in Pakistan, provide more support, more donation and more funding and support our economy as compared to democratic governments, for obvious reasons. So currency performance gets affected by US influence of economy as well. In dictatorships we also tend to recieve larger funds, some time to fight Russia in Afghanistan and create Taliban (under Zia ul haq) and some time to fight the same Taliban and kill them (Under Musharraf).

How are you going to incorporate it into your "analysis".

But those 'FOREIGN FACTORS' are not counted amongst Economical subjects..Economics does not take into account Political factors..It slightly take consideratiion of socio-economic or political-economic factors.

You are making a mathematical analysis..Here we are communicating to a layman you have to understand bro..If we take into account every factor then a person who has lesser knowledge of Economics,Maths or any other subject involved how is he going to understand what we are trying to elucidate?

 

[LeftBrain]

But those 'FOREIGN FACTORS' are not counted amongst Economical subjects..Economics does not take into account Political factors..It slightly take consideratiion of socio-economic or political-economic factors.

You are making a mathematical analysis..Here we are communicating to a layman you have to understand bro..If we take into account every factor then a person who has lesser knowledge of Economics,Maths or any other subject involved how is he going to understand what we are trying to elucidate?

but manilpulating the facts, mis-representation of facts and cheating of facts can not be termed fair just because a layman can not understand the matter. This is where the role of people with knowledge come into play. to make things easy to understand and address all the factors at the same time.

 

[oscar]

can somone post the prices of gold in PKR from 1947 to 2010?

 

[YAHYA87]

Well another aspect of currency value is based on Currency in circulation because if their are more currency in circulation compare to resources the currency value would decrease so as we know that Pakistan has very less number of resources available for fulfilling the country's requirement and more currency are printed and are in circulation due to currency demand(paying debts and balance of payment) so the value of Pakistani currency has also decrease a lot since that time so its not just the Dollar Rupee comparison due to which our currency is falling in the market but it is also circulation of currency due to currency demand compare to resource is also another reason why our currency is decreasing and this IMF is making it worse because IMF is a short term loans that need to be paid in less time like within five years or so and due to that they apply those heavy restrictions on countries so that a country should have enough money in its treasury that he could pay back their loans in in Musharraf's period the reason why we able to got rid of IMF was flow of USA funds to Pakistan for War on Terror so Musharraf didnt use everything for itself but actually also got rid of some mess created by BB and PMLN Govt.s of 1990s otherwise today the value of our currency would have been 100-120 against Dollars...

 

[greywolf]

Why PKR was losing momentum is because it is pegged only against US$ and not in the basket of other currencies..

If it was so ... I would have always bought pound sterling and bought USD with them ... safe and sound. No volatility would have affected me. Anything else ?

 

[greywolf]

Well another aspect of currency value is based on Currency in circulation because if their are more currency in circulation compare to resources the currency value would decrease so as we know that Pakistan has very less number of resources available for fulfilling the country's requirement and more currency are printed and are in circulation due to currency demand(paying debts and balance of payment) so the value of Pakistani currency has also decrease a lot since that time so its not just the Dollar Rupee comparison due to which our currency is falling in the market but it is also circulation of currency due to currency demand compare to resource is also another reason why our currency is decreasing and this IMF is making it worse because IMF is a short term loans that need to be paid in less time like within five years or so and due to that they apply those heavy restrictions on countries so that a country should have enough money in its treasury that he could pay back their loans in in Musharraf's period the reason why we able to got rid of IMF was flow of USA funds to Pakistan for War on Terror so Musharraf didnt use everything for itself but actually also got rid of some mess created by BB and PMLN Govt.s of 1990s otherwise today the value of our currency would have been 100-120 against Dollars...

hahahhahahaha ... LOL !

 

[Mujtaba Zaidi]

Well another aspect of currency value is based on Currency in circulation because if their are more currency in circulation compare to resources the currency value would decrease so as we know that Pakistan has very less number of resources available for fulfilling the country's requirement and more currency are printed and are in circulation due to currency demand(paying debts and balance of payment) so the value of Pakistani currency has also decrease a lot since that time so its not just the Dollar Rupee comparison due to which our currency is falling in the market but it is also circulation of currency due to currency demand compare to resource is also another reason why our currency is decreasing and this IMF is making it worse because IMF is a short term loans that need to be paid in less time like within five years or so and due to that they apply those heavy restrictions on countries so that a country should have enough money in its treasury that he could pay back their loans in in Musharraf's period the reason why we able to got rid of IMF was flow of USA funds to Pakistan for War on Terror so Musharraf didnt use everything for itself but actually also got rid of some mess created by BB and PMLN Govt.s of 1990s otherwise today the value of our currency would have been 100-120 against Dollars...

True Yahya Bhai.

 

[Mujtaba Zaidi]

If it was so ... I would have always bought pound sterling and bought USD with them ... safe and sound. No volatility would have affected me. Anything else ?

NHi Sahab ji aur kuch nhi..You know k there are some people who have this obnoxious habit of disagreeing with everyone on every matter...Do you know them?????