Remove the death signal determined by IMF team and our economic pundit who remained silent while IMF said to ‘’let the Dollar parity fix with Pakistani currency on market-determined price’’ indicating a persistent threat to National Economy that’s pushing the country on the verge of disaster or flashing to bankrupt.
PTI govt. must immediately take notice that our rupee is devaluing sharply. It’s falling vertically or headlong where the economy precipitating into complete ruin.
So without waste of time our Economic manager i.e. Governor State Bank, Finance Minister & Advisors to the Prime Minister on finance must rush and chalk out policy measures that how to stop & put break in ‘’Dollar flight’’
We know well that economic condition is rattling & devaluation of Pakistani rupee against dollar parity seem unmanageable due to strange clause of IMF that instead uplifting its declined economy, it shows unfavorable behavior on part of IMF.
Today May 18th Dollar Rate in Pakistan is Rs150.5 equals $1 dollar, rates are updated every hour. Dollar to Pakistan Rupee conversion price is based on ‘’open market rates’’ which are set by the currency exchange dealers of Pakistan as the proposal had been given by IMF seasoned sharks.
The dollar hike in financial market how went up unclutched or unclamped just from the next day of the meeting concluded between IMF team & staff-level agreement in order to give Pakistan $6 billion bailout package & maintaining rupee value hence forth be ‘’market-determined’’
Truly its signature on your own death notice that’s we witnessing, that how ‘’Pakistani currency losing its strength as compared to a dollar’’ where speculators, hoarders and Stock marketer big groups are maneuvering and giving heavy jerks on country reserves, by every passing day it is trumpeting to alert our survival, said expertise debating Pakistan economic condition & IMF condition.
Further, current visit of Prime Minister Imran Khan ordered action to be taken against any Exchange Company that sells dollars at higher than the market rates where he [PM] decided to constitute a committee tasked to submit proposals to improve the market mechanism.
People also said that why the premier physically visited and had a meeting with Exchange company’s guy – Is it level of the premier to go himself instead assigning the tasks force to visit and ensure currency stability in the market.
Why the premier team is not listening him. Why the ministers and the forces of financial team employed is not liaising with the concerned agencies and groups functional in the country to control & curb further devaluation of rupee. Its, better for him [Premier Imran Khan] and the country to take sever action for cheating, the electable [collection of descendant] who became part of Imran Khan govt., Said a seasoned economist sensing if black-sheep seem active.
The dollar was sold on Wednesday between Rs145 to Rs147, with forex exchange companies claiming that the market rate rose to Rs146 and closed at Rs144 in the open market in the federal capital.
On Thursday, touching Rs148 in interbank and open market trade briefly before settling at Rs146 but on Friday it was seen being sold at Rs150/= at some places.
The consistent rising & uncertainty being seen in rupee devaluation, where the first price even not lasted or stabled, while the very next day it has another shoot.
A major drop in rupee value started zooming up following the IMF condition that ‘’let the dollar determined its own value from market escalatory behavior’’….what a joke really?
Use Mahathir Mohamad Classic steps………..to prevent the economy from sinking further after the financial crisis started to bite hard into the country, the World Bank [WB] lauded Mahathir capital controls that ‘saved’ Malaysia.
It further said the rest of the world should have learned from the government of Mahathir on how it handled the catastrophe bravely and with wisdom, in order to prevent such happenings again. The report is entitled ‘Turmoil to Transformation: 20 Years after the Asian Financial Crisis.
The World Bank said the Mahathir government quickly learned that the stabilization of the ringgit was crucial to the success of the Government’s plan. At that time, in 1998, the ringgit had plunged to its lowest rate versus the US Dollar.
But Mahathir made a bold move by fixing the exchange rate at RM 3.8 to US$ 1.
This was “Perhaps Malaysia’s most controversial measure was to introduce selective capital controls.” said the WB in its report.
We therefor must use Mahathir formula to fix EXCHANGE- RATE PAKISTANI CURRNCY PEGGING WITH DOLLAR OTHERWISE OUR ECONOMY HAS NO GUARANTEE TO STABLIZE, IF EXSTING TRENDS GOES CONTINUE TO LEAVE DOLLAR MAKING ITS PRICE ON MARKET BEHAVIOR. …A SERIOUS DOWN FALL IS SEEN.
‘’The morning of Thursday State Bank provided the exchange rate that had been withdrawn, and the banks were asked ‘’to let the rupee find its own value’’ …a harbinger to crush Pakistan currency and push Dollar to fly up looking a deliberate-strangle from SBP Governor.
This is a clear indication that the State Bank not only knew about the devaluation, but in fact let it happen by design. This is exactly how it has worked in all previous devaluations as well.
It looks the government has just signed a staff level agreement with the IMF that speaks of “prior conditions” and the need to move towards a “market determined exchange rate”, and that there is a new State Bank governor who is more likely to take these commitments seriously.
Was it new to State Bank governor, Raza Baqir who brought 16 years’ the brilliant exposure with dynamic economic thoughts with him in Pakistan to run SBP & that the reason he was hired instead getting trap by IMF.
Raza Baqir, a professional could not sense the IMF seasoned sharks who squared the team and they silently accepted the terms and condition dictated by IMF that how to operate in the country foreign exchange markets.
It’s not practical & seems viable – so far IMF has staff level agreement that convened among IMF official with Pakistan counterpart, so this clause can be changed & replaced giving a fix price i.e Pakistan currency Rs20/- is equivalent to $1/=
Its, not new practice but rest of the world are adopting this calculation for their exchange rate with their local currency.
Entire UAE, Middle East and Arabian Gulf adopted fixed exchange rate for Dollar with their local currency. DH 3.64 is equivalent to $1 dollar – Qatari Riyal & Saudi Riyal 3.64 is equivalent to $1 dollar.
By doing so Pakistan can strengthen & stable its currency instead getting it more devalued against dollar, our rattled economy too will cease its further declining.
Does Reza Baqer understand the rackets that operate just below the surface, both in the interbank and especially the open market?
Imran Khan [The premier] has been mandated to show his compulsory duty to manage the forthcoming adjustment, considering this is only the beginning.
The premier was urging restraint upon the exchange companies at the same moment the State Bank was preparing to let the rupee fall in the interbank market.
What a tragedy that experienced people whose services had been hired by Pakistan govt. with the motive to work in favor of Pakistan but it sadness that they seemed working against Pakistan to push & devastate the economy.
It seems a secret move against the state to undermine the state and its discipline, making it more feeble and maimed from its base, squeezing its currency at zero level, reducing its reserves, paying more money for import bill and refilling more rupees to pay balance of payment, giving a freehand to groom inflation. Really irrational & disastrous move from the expertise that had been imposed by IMF.