Govt moves to ‘cool down’ an ‘over heating’ economy
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RajaRawal111
Prime Minister (20k+ posts)
Good. Soooo It is an acceptable Dug Dugi jee?This term is not new Raja Sb,
Overheated Economy: Factors That Contribute
An overheated economy is one that is expanding at an unsustainable pace.www.investopedia.com
Sohail Shuja
Chief Minister (5k+ posts)
According to the precis of the "Overheating economy", there are two necessary ingredients i.e 1) Rising inflation due to increased production and 2) Low unemployment rates.
Currently, our economy is showing both signs. Inflation at highest and the unemployment rate at the lowest since past ten years.
Pakistan Unemployment Rate
Unemployment Rate in Pakistan decreased to 6.30 percent in 2021 from 6.90 percent in 2019. This page provides - Pakistan Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.
tradingeconomics.com
RajaRawal111
Prime Minister (20k+ posts)
Subhan Allah --- the Unemployment rate should be very credible.According to the precis of the "Overheating economy", there are two necessary ingredients i.e 1) Rising inflation due to increased production and 2) Low unemployment rates.
Currently, our economy is showing both signs. Inflation at highest and the unemployment rate at the lowest since past ten years.
Pakistan Unemployment Rate
Unemployment Rate in Pakistan decreased to 6.30 percent in 2021 from 6.90 percent in 2019. This page provides - Pakistan Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.
Ligna ae tusi be Dug Dugi hath with parki hoi ae
I don't know what the hell is this
Pakistan - Unemployment rate 2022 | Statista
In 2022, the unemployment rate in Pakistan was at approximately 6.42 percent, a slight increase from 6.34 percent the previous year.
www.statista.com
miafridi
Prime Minister (20k+ posts)
It is common sense to know that CAD should be controlled.
Desprado was not laughed at because we didn't agree that CAD should be at a controlled level, but he was laughed at because of his solutions that the dollar should be controlled through reserves, Pakistan should be declaring itself default, and that there should be hyperinflation in Pakistan where Petrol price should be 150 Plus, and electricity prices should be skyrocket as well.
Desprado was not laughed at because we didn't agree that CAD should be at a controlled level, but he was laughed at because of his solutions that the dollar should be controlled through reserves, Pakistan should be declaring itself default, and that there should be hyperinflation in Pakistan where Petrol price should be 150 Plus, and electricity prices should be skyrocket as well.
Pakistan where Petrol price should be 150 Plus, and electricity prices should be skyrocket and i still agree with this point and Inshallah we will 100% do it in October to save Pakistan another BOP crisis. Right now we really need to fully choke the growth until prices get normal and do you know import services were 900 million dollar alone in August? We cannot go for growth until the prices get normal because it is survival time.
Sohail Shuja
Chief Minister (5k+ posts)
Check the source of the data in your given link/graph.Subhan Allah --- the Unemployment rate should be very credible.
Ligna ae tusi be Dug Dugi hath with parki hoi ae
I don't know what the hell is this
Pakistan - Unemployment rate 2022 | Statista
In 2022, the unemployment rate in Pakistan was at approximately 6.42 percent, a slight increase from 6.34 percent the previous year.
In mine, the source of data is Pakistan Bureau of Statistics.
Wake Up Pakistan
Chief Minister (5k+ posts)
bhai bohat Lambhi chortay hou aaap
tumhara pooora plan hai PTI election haray
bas kar yar
MS pakistani
Politcal Worker (100+ posts)
1) Rising inflation due to increased productionAccording to the precis of the "Overheating economy", there are two necessary ingredients i.e 1) Rising inflation due to increased production and 2) Low unemployment rates.
Currently, our economy is showing both signs. Inflation at highest and the unemployment rate at the lowest since past ten years.
Pakistan Unemployment Rate
Unemployment Rate in Pakistan decreased to 6.30 percent in 2021 from 6.90 percent in 2019. This page provides - Pakistan Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.
it seems very doubtful. how can inflation rise due to increased production. it should be the opposite. inflation causes when there is decrease in production. gap in supply and demand. it should be, rising inflation due to increased cost of production. (increased cost can be cost of utilities, taxes, raw materials, employee wages and so on). correct me if i am wrong. thanks.
Sohail Shuja
Chief Minister (5k+ posts)
Increased production means increased employment. Increased employment means less supply of labor in the market, increasing the cost of production. Moreover, increased employment also means a greater disposable income, which creates a demand surge and a supply gap because people are ready to pay more for the same commodity than others.
Therefore, rising inflation is sometimes a result of higher employment and an increased standard of living of the people aka more disposable income. The effect is the competition for the labor and also a competition for the commodity in the market.
AhmadSaleem264
Minister (2k+ posts)
Kindly check this thread where you actually endorsed to use dollars to stabilize usd. You had the same argument when the interest rate was high that sbp should intervene to bring dollar downSir when i said to use dollar to control USD?
USD is rising due to shortage of dollar. Why there is shortage of dollar since May late?
1) Perception of imports has rise due to giving subsidy on imports by FM
2) Lack of FDI due to unstable currency and less 200 million dollar FDI in 2 months of this FY.
3) Market is aggressively is buying dollar from local exchange markets
4) Outflows investment due to delay of IMF program
5) ADB, WB and AIIB has stopped Pakistan funding due to delay in IMF
6) 2.3 billion dollar CAD in just 2 months ,however, Shaukat Tarin promised NA, Senate, IMF and PM that our CAD will be 2.3 billion whole FY of 2022 and it also mentioned in his Budget book if you think i am lying.
7) Government uptake has rising to 2018 levels.
8) Export as not increased at according to Shaukat tarin and he saying GDP of Export was better in previous FY
9) Luxury items were giving concession, which created shortage of dollars.
10) Negative interest and forced it too long that it created artifial demand of imports.
Positive interest rate always helps to reduce imports and improve import ,however, our PM was desperate for growth but the growth honeymoon is over because it will only create hyper inflation nothing more.
Pakistan will have to take difficult decisions in future due to IMF: SBP governor
State Bank of Pakistan Governor Reza Baqir believes Pakistan has overcome threat of COVID-19www.geo.tv
Shaukat Tarin will be kicked out because he is the main reason for the mess and misguided PM on CAD, Inflows, FDI and exports and Imports.
There is a fight between Shaukat Tarin and Reza Baqir.
AhmadSaleem264
Minister (2k+ posts)
Yes you are right rapid growth also increases inflation but in Pakistan there is no rapid growth. In Pakistan the inflation is because of faulty ipp agreements loans decreased exports and increased imports
Wrong inflation is high because local industry cannot meet the demand that is why we import. All government has given subsidy to consumption impoters that is why local industries are finished in Pakistan and our import increase yearly. All government including PTI did cheap way, which is import and did not do a single reform to sum up this mess.
AhmadSaleem264
Minister (2k+ posts)
This is what i said when i said increased imports and decreased exports
Sohail Shuja
Chief Minister (5k+ posts)
In fact, I was trying to tell Rajarawal111 that Heating up of Economy is not a new term coined by PTI Govt.
However, on the other hand, since our unemployment rate has declined since 2018, it certainly will have its impacts, specially when the markets outside our country are closed due to COVID.
Nevertheless, the impedance faced by our economy from the factors you mentioned cannot be ignored. So, I would say that it is a compound effect of many factors that is rising the temperature of our economy.
