Mr.@AtifRMian should know that running an economy &taking policy decisions is not like teaching in class room or writing theoretical research papers.There was nothing ‘mythical’ in our Exchange Rate Policy that we designed within the context of a tough IMF EFF-program which...1/9
...we negotiated within 4weeks of assuming office&completed over 3years with 12 quarterly reviews, the ONLY successfully completed program in Pakistan‘s history.
We started the program in Jul2013 with a NEGATIVE net international reserves (NIR)of $2.4B and at End-Sep2016...2/9
We started the program in Jul2013 with a NEGATIVE net international reserves (NIR)of $2.4B and at End-Sep2016...2/9
...NIR reached POSITIVE $7.6B. Notwithstanding some misplaced concerns on real exchange rate parity, we kept accumulating reserves while maintaining exchange rate stability, a desirable objective for a country in need of foreign resources to augment domestic resources for...3/9
...investment.Our inflation remained years low,averaging less than 5%as we generously passed on the benefit of low oil prices to consumers that increased their disposable incomes.
Your claim that we played havoc with exports is baseless.Our exports faced adverse terms of...4/9
Your claim that we played havoc with exports is baseless.Our exports faced adverse terms of...4/9
...trade(TOT),particularly textiles, in the aftermath of global commodity prices decline.The overall TOT was favorable to Pakistan as we realized significant savings in our import bill which more than compensated loss of growth in exports (despite exporting higher quantities).5/9
...Moreover, with Exports Incentive Package (refund of taxes/levies etc) of Rs180B in Jan2017, beefed up by Rs67B in Aug2017,exports increased by 13% in PMLN’s last FY18. Thereafter,40% devaluation disaster resulted in 2% decline in exports in FY19 & meagre 3.8% increase in...6/9
...exports in FHY20.What kind of economics would justify the havoc inflicted on domestic production by mercilessly cutting imports & unleashing a massive wave of inflation in the Country?Why have exports not increased after such unprecedented devaluation which added Rs4000B...7/9
...in Public Debt, millions in Poverty and Jobless numbers and overall ruined the economy? Would anyone justify such massive devaluation for negligible exports growth? Despite all engineered dharnas & political instability, our growth trajectory was rising throughout the...8/9
...PMLN’s tenure & GDP peaked at 5.8% in its last FY18. However, I endorse your views reg current Monetary Policy and Hot Money, a subject on which I tweeted few weeks ago. 9/9
