According to money central at msn, Pakistani Rupee was traded at US $68.25 today. Just around January of 2008, Rupee was quite steady at around 61 rupees to a dollar but in the past 4 months, the depreciation has been alomst 10%. That too at a time, when US dollar is also weakening as compared to other major curencies of the world. Following graph shows Rupee’s one year comparison versus the US dollar.
On May 23, 2008, ONE Unit of other currencies was equal to following number of rupees:
1 Australian Dollar = 65.64 Pakistani Rupees
1 Bangladesh Takka = 0.99 Pakistani Rupees
1 Canadian Dollar = 69.09 Pakistani Rupees
1 Chinese Yuan = 9.84 Pakistani Rupees
1 Euro = 107.73 Pakistani Rupees
1 Indian Rupee = 1.6 Pakistani Rupees
1 Iraqi Dinar = 0.06 Pakistani Rupee
1 Kuwaiti Dinar = 257.58 Pakistani Rupees
1 Saudi Rial = 18.23 Pakistani Rupees
1 Thai Baht = 2.12 Pakistani Rupees
1 UAE Dirhan = 18.61 Pakistani Rupees
1 Zimbabwe Dollar = 0.002 Pakistani Rupees
Following graph is the 5-year view of Pakistani rupee versus the US dollar. One can easily note the alarmingly sharp decline in the value of Rupee in the last few months.
Following graph shows Rupee’s sharp decline as of August 7, 2008
References:
1. Money central, msn
2. Yahoo Finance
2007 pakistani budget was 1800 Billions of Rupee.
Taxes comming in about 1000 Billions.Defecet is 800
billions.Shortcut Aziz gave all chances to bussiness
especially foreign owned bussiness to make money and not pay a fair taxes.So the short fall in the budget was made up by printing more money
or borrowing foreign currency to make up the short fall……When the dictator took over the non-
development budget was 475 billion rupee.In 2007
budget non-development expandture was 1475
billion rupee…….No one should be surprised if
pakistani currency is sliding down word or the
prices of the commodities are going up.This ecnomic mess has been created deliberatly or these people
were incompetant…..so that in case there is change in the govt……..the ecnomic mess will be so bigger they will not be able to handle and the blame of the
ecnomic failure in the country on them.Pls. also remember the repayment of the loans or interest was postpone for 10 yrs.so that who ever people
will be running the Govt. will not be able to perform
independenly in the interest of the Country…………
beacuse they will under pressure from thoes
agencies to whom they owe money.
Owais, I think your post is missing some context.
First, the decline is even more alarming when one considers the fact that the U.S. dollar ITSELF has declined like crazy compared to the Euro and Canadian dollar during the past few years.
There are a number of possible reasons for this sharp recent decline. The consensus seems to be that the decline is mostly due not to important economic indicators, but to speculation by people who aim to profit from short-term trades. Another undeniably important reason is the sky-high price of oil. Since the cost of a barrel of oil has DOUBLED within the past year alone, it means that we’re sending out much more from our foreign currency reserves and thereby devaluing our currency.
The Shortcut Aziz government also deserves a lot of blame for the current situation. They did away with a lot of taxes and created an environment that is extremely pro-business and favors wealthy people. As of right now, we have no capital gains tax (even the U.S., with all of its emphasis on free-markets, etc has one), no solid real estate taxation system (think ridiculously expensive properties owned by a handful of people), no agricultural tax (feudal lords get richer and don’t pay a paisa), and no wealth tax which the Aziz government did away with.
Also, saying that most people don’t pay the taxes they owe is a preposterous excuse; this is the one thing that the finance department needs to go after if Pakistan’s economy is to have a half-decent chance.
Irum, what has a simple, innocent dance got to do with Thugs, Hoodlums and corrupts….. If they are enjoying a folk song why are you so jealous….
Pakistan cannot become a manufacturing hub with its poor power situation.By the way, a Pakistani newspaper carried article about how Sindh farmers are having water shortages. Well I have been saying that Pakistan needs a water policy on the anvil. The current politicos are too busy playing palace intrgues to care about the common man or woman. The common man or women was stupid enough to think otherwise. You get what you ask for.
For anyone who has any doubts that poor Pakistan is indeed being run by a bunch of thugs, hoodlums, corrupts and illiterates, please watch this and make up your mind…..
http://www.youtube.com/watch?v=YUYqi6shWyM&feature =related
One can take advantage of the weak currency by becoming more of a manufacturing economy for other countries. It is cheaper for other countries to buy products from Pakistan as well as setting up factories due to cheaper labor and costs of operating.
Once foreign money starts coming up faster, the economy will improve.
Of course, to get this to work, we will have to improve our security situation as well as improve worker rights, and get better laws in place.
We have many many successfully countries to look at to get our blue print. Just do what they are doing and we will get the same results.
Why we haven’t been able to do this so far? Stupid, selfish and corrupt people running the country. Now the same idiots are back in power again.
This is really sad. Every government holds all the un-favorable decisions in their last days in power and then it all floods out in one go as the new government takes over…
Although, am not an economist, but I fail to understand WHAT good did Shaukat Aziz do to the ‘common man’ in Pakistan?
Dollar exchange rate is too far a statistic; today I bought a roti from a nearby tandoor for Rs. 5! How can a common man with a monthly earnings of Rs. 5,000/- make his ends meet?
Today I am going to “Great America” (theme park ) where I would be a kid and take every single roller coaster ride I could get my hands on.
Enough of this dipression, its a new day.
So take your children, girlfriends, misstresses or MAY be wifes to a nearest park and enjoy your day.