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An estimate of M0, M1, M2, and M3 Money in Pakistan
As a general rule of thumb every 7% increase in the inflation rate doubles the total amount of money in existence every 10 years. At 14% it would be 4x the original amount in 10 years. KIBOR went up from 5.75% (a record low in the history of Pakistan) in May 2016 to 12.25% as of today. More than double the increase in the last two years. The way I see it is that the Government is trying to incentivize people to hold their reserves in the banks or in bonds instead of in gold or other solid assets etc. On one hand, this is not good for the industrial sector and companies since their stocks will tank as people sell stocks and buy bonds, etc but on the other hand, the government wants to strengthen the rupee since the current inflation rate of 8.25% can still devalue the currency and lead to hyperinflation if not handled properly.
Today:
1 USD = 89.55 Bangladeshi Taka
1 USD ~ 198.87 Pakistani rupee
Why? Because we could not do three things the right way much as Bangladesh did:
1) Bangladesh got rid of the Army
For Bangladesh Takka to grow, the two biggest earners were textile and money sent back by the ex-pat workers. Even our countrymen set their Textiles in Bangladesh owing to law and order. The men in Saudia and the Middle East have been replaced by Bengalis with the same positive non-violent image they portrayed to the world. BD neither has any fertile political landscape nor do they face existential threats owing to their location. There was no interference/distraction etc by any other country and India looked after it in how the country is run. Bangladesh shares land borders with India and Myanmar only, former has successfully turned Bangladesh into its satellite state.
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