In last 3 yeras #PKR dropped 45% to dollar compared to 3% & 16% drop in #Taka & #INR because when #Bangladesh & #India focused on improving economic fundamentals and let currencies adjust to market, #Pakistan focused on artificial overvaluation (2013-18) through ad hoc solutions.
As a result, they have improved economy at one hand and lower inflation, lower public debt at the other.
We lost on all three.
Remember!
Exchange rate is a price. You can distort it, but it distorts whole economy. You can hold it for a while, but it gets back with higher costs.
We lost on all three.
Remember!
Exchange rate is a price. You can distort it, but it distorts whole economy. You can hold it for a while, but it gets back with higher costs.
Ignoring economic fundamentals added further to pressure on rupee. And it dropped and dropped more than what would have been if we focused on improving economic fundamentals (case of Bangladesh and India).
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