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Tuesday, April 16, 2024

Dollar Hike is Good for Pakistan, KP Minister Shaukat Yousafzai’s Bizarre Economic Theory

KP's minister Shaukat Yousafzai blew the minds of people with another bizarre theory of declaring the dollar hike in favor of Pakistan. The social media went into overdrive, reminded the minister that a hike in the important currency like dollar leads to the rise in the price of the basic commodities.

KP Minister Shaukat Yousafzai again landed in hot waters after he claimed dollar hike is beneficial for the country in the long run.

The video is a short clip in which the minister can be heard referring to the hue and cry following the hike in the value of the dollar. Without referring to any specific foreign transaction he said that the people with less knowledge do not know that the dollar hike is beneficial for Pakistan.

https://twitter.com/IqShoaib/status/1199928716790398976

“We have an edge over the rising dollar rate [in the country] because its cost has increased by Rs3 billion and we can save up to Rs3.75 billion since Pakistan has to pay back in rupees, not in dollars… therefore, we do not have to spend anything from our pockets,” the minister can be heard saying in the video.

KP Minister also added that a needless confusion is stirred on the matter.

Though the context of the minister’s assertions is unclear; social media went into overdrive after Yousafzai’s video made rounds on Twitter.

Read more: Tomato: A gold like commodity Pakistanis can only make memes about now

A score of citizens mocked Yousafzai for formulating a bizarre economic theory of declaring the depreciation of the currency beneficial for the country.

A few social media users speculated that his particular statement of declaring a dollar hike in favor of Pakistan is in the context of the increase in exports. According to an economic principle, a depreciation in the country’s currency can propel the increase in its exports; the country’s goods become cheaper internationally and gain a competitive edge over international competitors.

Netizens, however, recalled his previous statement of advising people to use yogurt instead of tomatoes for cooking during the fiasco of the tomato price hike.

He backed his advice with a demand-supply mechanism. Adding that the price of the commodity will go up due to high demand and low supply. Prices of the commodity will come down if people stop using the commodity completely for a brief time.

Read more: Artificial Price Hike: Lahore Overwhelmed with Soaring Prices of Vegetables & Essential Commodities

He said people must stop using tomatoes and use yogurt instead till the price of the commodity scales down.