Dear all experts,
As you know PKR has depreciated heavily in past few weeks. What are you suggestions on how we can safeguard our savings that are in cash in a bank account. Is it too late to open a foreign currency account?
The point of this thread is to understand future trend and how a person can stop his hard cash asset from devaluing. Just a request to please do not discuss politics here, we already know the reasons behind this depreciation.
Naqvi sb
Historically whoever confronted USA & Europe, we witnessed the worst economy of that country.
We have seen Eidee Amin, Norega, Peru’s ruler, Robert Mughabe & so many others…
Now in Somali Land, not Somalia, if you want to buy just a fridge, you need to hire a labour who could take the cash in a trolley…
In Pakistan, we know the main factor of devaluation…the exporters are not materializing the LCs just waiting for more Rs free fall to earn more profit…
In this scenario, one of the best options may be investing in Agri land as in Punjab barani land, you can get Lacs of 6 months profit only in peanut & Agri land appreciation is going over the roof all the time.
Other options may be buying small plots with small investments in city areas…for example in 5 Marla plots in DHA-3, Orchard, phase-8 extension, DHA valley clean blocks, Naval, gulberg & RRR bound societies possession plots where onsite development could be seen with your own eyes…
In Agri land, you would be safe from FBR & could get 2 crops per year & you will never involve in practical harvesting as Afghan families can buy your crops right in field & will pay you as soon as they sell in the market…
Plus if you make a farm, there is lucrative income, too in raising cattle stock…
AQ sahab thanks for your valuable comments. Yes many options in investment are available however as we know investment is with risk. So apart from investment what other methods one has to safeguard his cash from depreciating passively? Gold can be a hedge but these days it is also expensive, a foreign currency account seems a good idea but dollar and other currencies already pretty high.
@humayyun.786
Yes sir, $ seems to be an option but the way Pak economy is sliding, anyone who is on helm has to make long awaited difficult decisions in tax domain
Then you have to deal with FBR on $ account if you do not want to put cash in pillows.
Tax collection is the only answer & already govt is tightening the same.
If not $ then property is the only answer but gain tax is ok only if you sell AFTER three years or more.
Gold is good in abroad as there is no service charges once you get & when you sell…but in Pak, you need to pay at both occasions plus gold quality may also be compromised…you never know.
Save my words sir, FBR is going to be a naked sword in very near future.
When you buy/sell gold, documentations must be produced & Jewellers shops would be under close monitoring…
My tax Lawyer told me yesterday that the FBR random selecting machine picked up his office employees having max 6.5 Lacs annual income & sent them tax return notices…it has gone so far?
If govt delayas tough steps then mere moun main khak, Pak may file bank currupcy under the present currency slide…
Mian Reasons: Shrinking Economy with Escalating Import Bills (Trade Deficit) and More Dollars to Borrow than our Economy can Generate.
SafeGuard the Situation:
The point: Will selective RE projects grow better to negate the rise of USD? I feel yes, …
Gold: Will rise but it would need a holding power of 1+ to 2 years to get benefits and it does involve the Zakat Factor so that muct be included in the calculations.
Forex/Crypto: Crypto also suffering for now. Still prospects with long holding powers 3+ years seem good. Daily trading is an option but it requires more investment to be meaningful
If Holding Power is at least 12 month, Foreign Currency Account will never disappoint
For someone who is a filer and has nothing to hide, should not worry about FBR tracking him down just because he owns gold or has a foreign currency account. In fact SBP only allows filers to operate a FX account.
I don’t understand we have all time high FX reserves, why it can’t be put to good use so exports can be increased and import vs export bill difference is reduced which will lower the demand of dollar and hence bringing it down.
Thanks for your comments, as you might have interpreted from my comments, the objective is not to have maximum profits but to safeguard what we have in PKR to stop it from depreciating.
Like I said exporters are not materializing their LCs & waiting for more Rs slide & more profit.
That is making big difference in imports & exports imbalance…
dollar smuggling to afghanistan is also making an impact and that thing I am not seeing stopping soon. So dollar will keep devaluing in coming months.
anybody has past experience with foreign currency account?
PKR moves nervously during the banking hours. Never a sign of stability. Last year prediction was 180+ though 5 Billion was pumped in, to slow down the fall. Now with those USDs burnt, import bills, debt servicing etc. PKR taking a hit yet again, 175 unfortunately at minimum in foreseeable future, Dec-21 lets say…
Nasir brother, for now AFG new regime mostly importing (groceries and other practcalities of life), getting things from PAK, Iran and Central Asia so lack of dollars not that massive impact. The point is shrinking economy, growing trade deficits.
Wajahat sb, as the saying goes its the Iron that cuts the Iron, only USD or assets pegged with it (gold, forex, foreign currency) can cut the impacts on assets. For now its about investments, either savings will fall or will rise, rise is also a progressive safeguard.
Very well said Imtiaz sahab
Latest on the Topic:
Fitch’s forecast for the rupee’s average rate this year is now 164 to the U.S. dollar compared with 158 previously. For 2022, Fitch now expects an average rate of 180 versus a previous forecast of 165.
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Context: Fitch Ratings Inc. is an American credit rating agency and is one of the “Big Three credit rating agencies”, the other two being Moody’s and Standard & Poor’s. It is one of the three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission in 1975.
By the way, stay tuned Pandora Leaks Coming Today …
Names of 400+ Pakistanis included
Waiting for it! Lets see kon kitna doodh ka dhula hai
Before the Pandora Leaks, here comes another one Broadsheet leaks!
This is a timely thread on a subject that is no doubt weighing heavily on anybodys mind who is either Pakistan based and/or has a lot of investments in Pakistan. Quite honestly the short term outlook does not look good. The price of $ vs Pkr could easily cross 180. USA is looking for scapegoats for the Afghan mess and Pakistan could be slapped with sanctions which could mean further depreceation of the Pkr vs $. Gurus have already suggested investing in real estate, forex, gold and crypto (highly risky if you do not understand the market) as a hedge against Pkr devaluation. Nothing more to add to this and I hope and pray that the almighty saves the ordinary man in the street from the worst as life is quite difficult already for many as things stand.
The currency has lost so much of its value in the last four months, plummeting from 152 to a dollar to the current 173 that the experts are calling this the steepest fall in one span of time in the recorded history since the currency was linked to the dollar in the early eighties
Fitch has revised its evaluation of the rupee and is forecasting the currency to go to somewhere between 180 to a dollar in the next year
Market Direction
