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How increase in dollar valuation against Pakistani rupee effects us?

Well, dollar is the king of international market, but it works like a queen of chess board having maximum power to move and hit anyone she wants.

increase in dollar valuation against Pakistani rupee - marketist - marketing guru

How increase in dollar valuation against Pakistani rupee effects us?

  • Prices
  • Inflation
  • Investor confidence
  • Import/export
  • Country loans

Prices;

increase in dollar valuation against Pakistani rupee increase;

  • patrol
  • LNG
  • CNG
  • Cooking Oil
  • Potato (Aalo) & Onion (Piyaz)
  • electricity prices.

Living in a pakistani society these things for a common man like me are top priority to think, spend and discuss. Every time dollar increases leaves additional burden on every shoulder of Pakistani family.

Inflation;

Inflation is generally when prices increases rapidly and when there is down fall in purchasing value of money. It not only kicks the poor’s ass but also leave dhamakedaar impact of an economy. The middle class and below them find extrmely difficult to compete with increased prices of home commodities.

The poor are highly sensitive when it comes to change in prices, especially food.

As majority of Pakistani people are poor, change is very difficult to carry for them.

Investor confidence;

With every government change, change is very  relative to key holder of the economy the investors. If dollar value decreases confidence level of an investor also decreases, if he wanted to invest now s/he will think twice before investing, or even he invested, when Pakistani rupee devalues, he will take all his money out.

This also does not leave good word of mouth for other potential multi billionaire investors. Stock exchange hits unpredictable things too.

Import/Export;

Well, Pakistani imports are mostly raw in form eg: petrol, chemicals and metal. Devaluation of rupee will not help although it will increase in prices and make Pakistani exports less competitive.

It will increase prices of imported goods eg: cars, bikes, phones or anything you name it and decrease the prices of exported goods because of devaluation of rupee.

Country loans;

Devaluation of money increases the value of loan, lets say a Pakistani owed Rs. 100 to IMF or anyone, if rupee devalues this will increase accordingly.


Well, what are your thoughts about current government’s decisions and economical conditions of Pakistan? Please let me know in comments.


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Money only holds value because there are goods and services available to buy with that money. It is the goods and services that create a value for that money. Coconut water would be more valuable on a treasure island than kilos of gold. In that circumstance, it’s not the value of coconut water that has increased, but the diminished value of gold that is being reflected. The fewer goods and services available, the lesser the value of money – even if it is a pile of gold.
#TakenFrom: Tribune


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