Since we are aware about the dollar exchange rate with Pakistani rupee, a very few of Pakistanis can understand this situation as it can be a golden opportunity, but the question is how? Obviously you might be thinking I am crazy person who is still saying that there is an opportunity behind this dollar rise and the fall of Pakistani rupee. Me Syed Junaid Bukhari (Technical Bukhari) going to show you how this is possible.
Before starting up I would like to define how do we determine the value of a dollar? and for answering this question I am going to use a simple reference by a site thebalance.com you can visit it as well, it says;
"The value of money is determined by the demand for it, just like the value of goods and services. There are three ways to measure the value of the dollar. The first is how much the dollar will buy in foreign currencies. That’s what the exchange rate measures. Forex traders on the foreign exchange market determine exchange rates. They take into account supply and demand, and then factor in their expectations for the future. For this reason, the value of money fluctuates throughout the trading day.
The second method is the value of Treasury notes. They can be converted easily into dollars through the secondary market for Treasuries.
The third way is through foreign exchange reserves. That is the amount of dollars held by foreign governments. The more they hold, the lower the supply. That makes U.S. money more valuable. If foreign governments were to sell all their dollar and Treasury holdings, the dollar would collapse. U.S. money would be worth a lot less.
Now getting back yo my topic how this inflation of money can become an opportunity, and can attract the capitalists and industries towards investment in Pakistan?
Still before going through the answer of my question lets study the per capita income of Pakistanis. As I got in my research a website Quora defines this as;
"Pakistanis earn $1513 a year on average per capita income: A Pakistani now makes $1,513 a year - The Express Tribune which means an average Pakistani earns 12k–13k a month."
In this statement it also reference to Express Tribune.
Now moving towards the per capita income in dollars for other countries and in this research I got the answer from a magazine "Where are you on the global pay scale?" BBC's Official Site which defines:
"Let's put the world's average salary - in PPP dollars - of $1,480 a month, or almost $18,000 a year, in context: It is less than half the average salary of the UK and the United States, where average monthly earnings are just over $3,000 a month, or around $37,000 a year."
Now compare these researches, on one side the average Pakistani employees' incomes are $1,513 a year while on the other side the average global incomes are $18,000 a year and that is just half of the employee income in UK and US where it reaches up to $3,000 per month and approximately $37,000 a year.
Whereas Pakistani employees are talented, skilled and they also speak and write English, just they need some training sessions and guidelines.
Hope you might have got the answer how the rise of dollar and fall of Pakistani rupee can be an opportunity for international capitalists to invest in Pakistan. If you have any suggestion or idea regarding this topic you can write below in the comments area.
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