By: Noor Alam Shah Qureshi                                                                                               Stabalizing the Currency

Devaluation of rupee

Year                             value per dollars

1947                             3.30

1955                                  4.76      

1992                                25

2000                               60

Reason behind this to increase exports

But

We got the opposite effect and instability in Rupee. Every economist/policymaker knows that exports increase due to

   * Quantity and quality of the exportable goods

   * Tourism

   * Foreign investment

   * Foreign aid

   * Home remittance.

We are devaluing rupee  and getting foreign aid( to be consumed in corruption) and waiting for the increase in exports.

You have no foreign investment when your own people have no confidence on their currency how you expect of foreign investment.

You are getting the foreign aid and running the economy on short term basis than you are crying when you give 3-4 billion dollars interest on foreign debt.

4 million Pakistani are in abroad they send their money in foreign currency bout you frizzed the foreign currency account. You know that they sent 11 billion dollars for a scheme in pervious government,  but what you did with that money. You made corruption in that.

You closed the shipping companies which were the major taker of your  exports.

What the people are doing, just to spend  a lot of money on luxuries goods by which we are bearing 3-4 billion dollars the trade deficit every year.

Do you want to stablize the rupee and increase exports to make a position

in 10.3 trillions world market.

If sincerely,                             YES

Than come with a policy by following roots,

1.   adopt a long run fiscal policy(do not bother loss in short run)

2.   Allowances should be given to exports so that the cost of production be less.

3.   Bring improvements in textile, dairy farming and new technology in agricultural sector.

4.   Enforcement of investment in own country less duty on machinery.

5.   Change the behavior from import substitution to export orientation.

6.   Free the rupee in market mechanism to generate its own value.

7.   Exports those goods with higher unit value.

8.   Import slashing is a must and all impoted commodities must be minimized.

9.   Do not devalue rupee roughly, but naturally that should increase the production.      

MORAL IMPROVEMENTS

-     Strict action against corruption.

-     Decrease the luxury expenses of each government department.

-     Nation must adopt austarity.

-     Do not promote foreign goods.

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