‪A magical solution for swiftly improving value of Pakistani currency.‬.!

18 May 2019
How to stop an impending financial meltdown due to swift devaluation of PKR?

Updated on 2nd July 2019

Dear Mr. Imran Khan Sahab.

AoA.

Sir,

The current shattered state of economy of Pakistan, wherein, daily steep and unprecedented devaluation of PKR versus the USD, whose interbank rate was higher than the forex market rate a few days back and the Bloomberg has rated PKR as the worst performing currency of Asia, regularly crashing of stock exchange market, unimaginable jump in prices of daily items of use like lemon being sold at Rs.400 per KG, increase in rates of utilities on an unending and continuous basis, exponentially increasing costs of health and education, reflects only one thing that there was now virtually no effective government in Pakistan, to protect the rights of the hapless Pakistani masses from the tricks and vagaries of traders, businessmen, industrialists and bureaucracy of the country.

Sir, the entire population of Pakistan is in severe shock, depression and despondency, due to this sudden economic crisis, severely affecting every Pakistani who is desperately looking towards you as a competent and honest leader and above all a saviour of the rights of the masses of the Pakistanis, to act, and act fast, to the stem the rot, before this crisis turns into an economic meltdown.

According to Britannica.com “Public authorities face a variety of crises, such as natural disasters and environmental threats, financial meltdowns and terrorist attacks, epidemics and explosions, and information and communication technology (ICT) failures. Crises are not routine events (such as fires or traffic accidents). Crises are inconceivable events that often take politicians, citizens, and reporters by complete surprise. Crises occur when a community of people—an organization, a town, or a nation—perceives an urgent threat to core values or life-sustaining functions that must be urgently dealt with under conditions of deep uncertainty.”

Britannica.com further states that “These dramatic events create tough challenges for public authorities and their organizations. Critical decisions must be made and implemented under considerable time pressure and in the absence of essential information about causes and consequences. Even if the conditions for effective action are severely impeded, citizens expect governmental leaders and public authorities to safeguard them from the threat at hand.”

As such, extraordinary situations demands extraordinary steps.

Under the current scenario the people are fed up and no more ready to listen that Pakistan is suffering severe economic problems due to the loot and plunder of the past decade’s rulers, simply, because now Mr. Imran Khan is the ruler; and if any economic crime was committed in the past, why the responsible politicians, businessmen and bureaucrats are not arrested, their properties not confiscated and the national criminals put behind the bars, as yet, on any of such economic crime charges, by the PTI government?

People also ask why all past government players are roaming free (if they committed economic crimes) and entire burden of the economic crisis has been passed over to the masses, very conveniently by the PTI government, in the shapes of exorbitantly increased taxes EXTRA exorbitantly BACK BREAKING increase in the charges of gas, electricity and CNG rates.

Why NO ONE in your government of highly educated team of Advisors and Ministers has objected on the OGRA Gas Sale Price Notification dated 29 June 2019 on the following TWO points:

Why Engro and Fatima rate is about 33% of the rate of other fertiliser companies? For their new fertilizer plant investments; when these companies are already getting other benefits, rates reduction in gas feedstock seems to be an anomaly of uneven playing fields in comparison with other producers of fertilizers in Pakistan, as GIDC was also exempt for their fertilizer plants.

Secondly, sale quantity slabs are given in hm3, while cost per unit is in MMBtu? Is it deliberate effort to ensure public does not comprehend the quantum of increase? Sir, if you deeply study the increase in gas rates, astonishing facts will come to your knowledge that how much additional back breaking burden has been put over the middle and lower middle class population of Pakistan under the popular PTI government for making it the MOST UNPOPULAR CIVILIAN GOVERNMENT IN THE HISTORY OF PAKISTAN.

Does the PTI government wants to punish the poor masses for voting it to rule over the country, without taking to task even a single person of the past regimes for its economic crimes?

Moreover, PTI’s government can not absolve itself of all its responsibilities to improve the economic conditions of the masses, by going the easy and most cruel way of simply increasing rent, rates and taxes and devaluing the currency and then asking the people to give sacrifices, while people’s representatives are enjoying all the fruits of being in power.

People also ask why the PTI government has failed to reduce the massive/huge expenditures on the bureaucratic establishment and why advisors of the cabinet failed on their jobs and even then they have not been removed?

Why absolute austerity is not mandated in the government affairs by law, in these times of severe economic crunch?

Why people are not being told about the past government’s spendings of the huge foreign loans?

Why the energy audit of the IPP’s decided by the cabinet in its first meeting under Mr. Imran Khan as PM, has not yet been conducted?

In view of the foregoing crisis, created under PTI’s tenure of government, you may take all matters in your own hands, declare an economic or national emergency and form an Emergency Advisory Council of Pakistan (EACP) to:

~Devise, execute and monitor all related policies for economic turn around of Pakistan in the shortest possible time

~Immediate steps for stopping of funds leakages. In this regard, the World Bank has already estimated about $18 BILLION annual loss to the Pakistan’s economy due to the inefficient power sector. The World Bank has WARNED (repeat WARNED) the government against increasing power rates (I will add Gas rates also) as a tool to address fiscal challenges in the sector

~ Immediate steps for reviving industry, agriculture, trade and business with particular reference to services and IT sectors

~ Immediate steps for drastically reducing imports and doubling the exports

~Generation of additional revenues

This EACP should act like a war cabinet of the PM of Pakistan, as the current economic crisis is no less grave in its devastation, than a full fledged war. The following world renowned eminent experts, impeccably honest, highly capable and reputed personalities of Pakistan may be considered for the membership of the EACP, with the status of the federal minister:

1. Dr. Ashrfaq Ahmad Khan.
2. Dr. Ikram ul Haq, who is an international tax expert also.
3. Mr. Shahid Sattar, who is also an international expert on energy related matters.

4. Dr. Salman Shah.
5. Dr. Muhammad Zubair.
6. Dr. Kaiser Bengali.
7. Mr. Shahid Kardar.
8. Mr. Nadeem ul Haq.
9. Mr. Hafeez Pasha
10. Dr. Atta-ur-Rahman
11. Mr. Asif Sharif

~ Last but not the least, currently rapid and steep devaluation of PKR is eating away every economic gain of under the PTI government’s efforts to revive the economy. Plus devaluation is sharply increasing our foreign debt burden in billions of dollars on almost daily basis. In this regard, if somehow, foreign currency inflow is channelised into Pakistani banks the situation can abruptly improve.

In this connection, like the government is already giving an annual profit of 6.75% (payable bi-annually) on Pakistan Banao Certificates, with full guarantee of government of Pakistan, we can easily, quickly and comfortably get around $10 billion, if, you approve the launch of another scheme of allowing annual profit of 6.75% (payable bi-annually with fully backed GoP guarantee) on fresh foreign currency bank deposits in Pakistan. The beauty of this scheme is that (since this much profit is currently nowhere available in the world) even foreign banks will offer (as happened in India) foreign currency loans (at around 3-4%) to its clients to deposit funds in this scheme. Moreover, God forbid, if, for any reason, desired foreign currency inflows are not attracted in this scheme, government will lose nothing.

The above foreign currency bank deposits scheme should be available for all resident and non resident Pakistanis, under special permission of the GoP (like an amnesty scheme) and depositors NOT asked any questions about their sources of foreign currency funds.

Best Regards,

Syed Nayyar Uddin Ahmad