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SBP reserves critically low at $6.9 billion (practically zero)

Burger_King

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Never thought I would see the day but I have to agree with Dollar Dar on his comments on IMF as well as on Moody's hostile actions.

Given the challenges faced by Pakistan due to floods, IMF should be showing more flexibility when dealing with Pakistan. Government, clearly, cannot deliver on targets committed to IMF before the flood. Likewise, Moody's acted with undue haste when it downgraded Pakistan. Before issuing a negative rating action, ratings agencies usually give the issuer, in this case Pakistan, an opportunity to respond to concerns of the ratings analyst. Based on the response from the issuer, rating agency decides whether to go ahead with the downgrade or not, sometimes giving the issuer time to show if targets can be achieved within a specified time. Moodys did no such thing when it last downgraded Pakistan. Moodys actions were clearly mala fide. So Dar was right in expressing anger but not in the way that he did because he made Pak look like a banana republic.

But question is should the actions of gora financial institutions come as a surprise to us or to Dar? No, because goal of regime change operation was to weaken Pakistan. The whole purpose of RCO would have been defeated if IMF had relaxed the terms and acted in a manner which would be supportive for Pakistan's economy in the long run. Dar is simply a tuttoo who unwittingly helped goras to achieve their nefarious ends.

Now going back to Dar and his backers, while these people are corrupt and borderline ghaddars, they do not want to see a bankrupt Pakistan partly for reputational reasons and partly because they still derive support from Pakistan based tubquas. Dar and his backers genuinely believed that they would get gora backing if they removed IK's government. But goras had other plans which explains Dar's hysteria.

As for Pakistan foreign reserves, picture as well as trend is negative but it is not the end of the world. Reserves are like savings which should not be touched. And saying reserves are negative is like saying an individual is bankrupt because mortgage on individual's house is multiple times individual's bank balance. Reality is mortgage is paid through income, usually salary. Same is the case with import Pakistan requires in order for its economy to function. Like most non-oil producing developing countries, Pakistan has to borrow money to finance part of imports because Pakistan's export plus remittances do not fully cover import requirements which is only going to increase given Pakistan's demographic profile.

Under IK's government, economy had reached a state of equilibrium. IK's government had earned the trust of foreign investors as indicated by Eurobond issued by Pakistan earlier this year. More importantly, IK had managed to convince overseas Pakistanis to invest in Pakistan. But then RCO happened and its consequences are what we see today. Foreign investors remember the folly committed by Dollar Dar during his last tenure and ran for the hills. Mufta managed to right the ship to a certain extent but reappearance of DD was the last straw. Likewise, overseas Pakistanis, having an understanding of how civilized societies function, dont want to invest in society where likes of Rana Sanaullah hold unchecked power.

How did things get to this stage? I still cant understand why army high command would want to see a bankrupt Pakistan? Surely army cannot operate at anything close to normality when oil is hard to come by?

Anyone who can solve the puzzle of army's "neutrality" in the face of economic distress will do us all a huge favour.
 

That Guy

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At this point, It's likely that Pakistan is going to default. I just hope it's not before I can get my family out of there.
 

AZ1

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You mean those that created NS and his family as political leaders, and then put them in and out of power as they wanted, while allowing them to loot and plunder? I agree. What about those who raised false hopes by saying they would recover this fantastically unbelievable sum of money? Let us be fair here. They all lie.
how come hope is bad thing? something to aim for. He may didnt recover but shown to whole country who are involve and exposed everyone and what house owner can do if gatekeeper things stealing is fine. He didnt even had normal majority to form the govt without having alliance



You mean those that created NS and his family as political leaders, and then put them in and out of power as they wanted, while allowing them to loot and plunder? I agree. What about those who raised false hopes by saying they would recover this fantastically unbelievable sum of money? Let us be fair here. They all lie.
 

VCheng

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how come hope is bad thing? something to aim for. He may didnt recover but shown to whole country who are involve and exposed everyone and what house owner can do if gatekeeper things stealing is fine. He didnt even had normal majority to form the govt without having alliance

Before I answer that, let me put some background here:

Back when I used to call the military the real villains, people here did not believe me and called me names and worse. Then when I told them that the way IK was being put into power would not work, people would not believe me.

I was shown to be right both times.

Now when I tell people here that IK is just another demagogue who is giving false hopes to the nation that will never be realized, people do not believe me and call me names and worse. (AccuntAnt even gave me a negative rating, but eff him and it.) He will be shown his true place in the greater scheme of things soon enough.

It will take some more time for people to realize that I am right again. Not my problem again.

If anyone wishes to get bent out of shape at the above, please feel free to ahead and do whatever you wish. The truth will always make its own reality felt. :D

@WebMaster @AgNoStiC MuSliM @SQ8 @blain2 @Irfan Baloch @Accuntant and many others come to my mind here, since many other shills and touts like Brig Samson Sharif and Leader and Indus Pakistan have since disappeared, having done their part in misleading the gullible here.
 

SQ8

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Before I answer that, let me put some background here:

Back when I used to call the military the real villains, people here did not believe me and called me names and worse. Then when I told them that the way IK was being put into power would not work, people would not believe me.

I was shown to be right both times.

Now when I tell people here that IK is just another demagogue who is giving false hopes to the nation that will never be realized, people do not believe me and call me names and worse. (AccuntAnt even gave me a negative rating, but eff him and it.) He will be shown his true place in the greater scheme of things soon enough.

It will take some more time for people to realize that I am right again. Not my problem again.

If anyone wishes to get bent out of shape at the above, please feel free to ahead and do whatever you wish. The truth will always make its own reality felt. :D

@WebMaster @AgNoStiC MuSliM @SQ8 @blain2 @Irfan Baloch @Accuntant and many others come to my mind here, since many other shills and touts like Brig Samson Sharif and Leader and Indus Pakistan have since disappeared, having done their part in misleading the gullible here.
I don’t think hope is a bad thing - nor do I group everything or everyone under a blanket disdain.
Whether it is the military or IK or even other leaders - but rather prefer a balanced approach in handling institutions and people as the sum of their achievements/faults and then gauge it.

The military has had positive impacts but its overall contribution to the mess that befalls Pakistan today both directly and indirectly outweighs the good. IK I see heading the same way because his megalomaniacal tendencies make whatever good path(and encouragement of other positive forces ) cancel out but then what is the alternative.

My biggest beef with you still remains to an extent - it’s not all gloom and doom even though I agree that the national character likely makes it pretty inevitable unless some extraordinary individuals come up with an extraordinary plan(history has parallels) to save the day.

Your record was generally “All is lost and Pakistanis are dead” where I state “There may be hope if only the best of Pakistanis aren’t all forced out of the system”
 

VCheng

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My biggest beef with you still remains to an extent - it’s not all gloom and doom even though I agree that the national character likely makes it pretty inevitable unless some extraordinary individuals come up with an extraordinary plan(history has parallels) to save the day.

Your record was generally “All is lost and Pakistanis are dead” where I state “There may be hope if only the best of Pakistanis aren’t all forced out of the system”

LOL. Just give it some more time. You will come around to what I have said all along. :D
 

SQ8

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It is okay by me. I am content to wait for reality to prove who is closer to it. Yet again.
We can disagree on “reality” too - it’s all about perspective and with geopolitics and socioeconomics even RAND ends up like the Ruet e Hilal committee at times.
 

VCheng

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We can disagree on “reality” too - it’s all about perspective and with geopolitics and socioeconomics even RAND ends up like the Ruet e Hilal committee at times.

Sure, but let me just stay relevant to the current point: IK is just another demagogue who is giving false hopes to the nation that will never be realized. In the context of this thread, he simply has no plan that will set right Pakistan's economy.

Doom and gloom? No, please hope all you want. Pakistanis will continue to get poorer and poorer with worsening social indices, while the elite live the good life, and keep weeding out those who want any changes.
 

SQ8

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Sure, but let me just stay relevant to the current point: IK is just another demagogue who is giving false hopes to the nation that will never be realized. In the context of this thread, he simply has no plan that will set right Pakistan's economy.

Doom and gloom? No, please hope all you want. Pakistanis will continue to get poorer and poorer with worsening social indices, while the elite live the good life, and keep weeding out those who want any changes.
Agree with the above - unless he stops his egomaniacal tendencies which no 75+ year old will do.

And the poverty aspect continues for any country unless the middle class steps up and to your point the elite wont let that happen - at least not without force.
 

VCheng

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Agree with the above - unless he stops his egomaniacal tendencies which no 75+ year old will do.

And the poverty aspect continues for any country unless the middle class steps up and to your point the elite wont let that happen - at least not without force.

So the only part we disagree is that you wish to remain hopeful, and call me all doom and gloom, even though we agree? Got it! :D
 

Jango

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Agree with the above - unless he stops his egomaniacal tendencies which no 75+ year old will do.

Funny you mentioned this.

I was just thinking about this a few days back. It is often seen in desi families, even gora families, that the 60+ year old baba jee is pretty strict in his views and is refusing to budge, and does not listen to alternating view points. Ab 60 saal ki adat itni jaldi to nhn chootti.

So now we have a bunch of 70+ year olds in the form of the leadership of parties, and a COAS who thinks he's king of the world. A recipe for disaster, and deadlock.
 

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