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

Riz

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Did it occur to you that past results are no guarantee of future results? What needs to be known is what he will do if and when he is back in power, with the situation as it stand now, in the present.
Why you keep asking this stupid question again nd again? Why u need know about khan plan ? Why u are not discussing the current govt economic plans ?? Why handlers brought them into power? Why are u not asking the economic exFARTs generals of GHQ ? If genius bajwa was handsomely running khan govt why he failed to run 16 parties govt of PDM ?
 
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VCheng

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Why you keep asking this stupid question again nd again? Why u need know about khan plan ? Why u are not discussing the current govt economic plans ?? Why they why handlers brought them into power? Why are u not asking the economic exFARTs generals of GHQ ? If genius bajwa was handsomely running khan govt why he failed to run 16 parties govt of PDM ?

The current setup is full of criminals and only until next year, at the most, that is why. IK policies may have a much better chance of succeeding, but only evaluable if they can be seen, you know, just like any candidates' pre-election strategy. Just saying "trust me" is not enough.
 

Crimson Blue

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No we are not. We have no liabilities, that could lead to default, due till 2024 currently. The issue is how do we navigate out of this mess so we don't run across liquidity crunch in the 2024 timeframe when the next bond payment is due.

Hmmm ..... is that what Boys telling each other these days? Or this Goli is for new chief only ?

Addendum: Ahh .... Never mind as you are getting your information from Wajahat S. Khan.
 
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Jango

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No we are not. We have no liabilities, that could lead to default, due till 2024 currently. The issue is how do we navigate out of this mess so we don't run across liquidity crunch in the 2024 timeframe when the next bond payment is due.

The $6.7 billion reserves are not enough to service the $8.8 billion principal and interest payments during the January-March period of the current fiscal year, according to the sources.


Also, look at the byline of the article. This is where the problems start, and gradually snowball into something much bigger. Give it a couple of months before we see news articles 'Sipah salar nay mulk ki khidmat ki, jaan bazi par laga kar Saudi say paisay lay kar aye' and Hilal magazine and Khaleej Times would be running front cover stories. A couple of more months and the COAS would be dangling this over the government and counting it as an ehsan, and then this would be discussed in CC meetings and LUMS talks keh main ja kar paison ka bandobast karta tha. Has happened recently, will definitely happen again. Sorry for going off tangent.
 

doorstar

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The current setup is full of criminals and only until next year, at the most, that is why. IK policies may have a much better chance of succeeding, but only evaluable if they can be seen, you know, just like any candidates' pre-election strategy. Just saying "trust me" is not enough.
as was the last one. do you want to know how many PPP and PMLN criminals were (and most of them still are) surrounding advising the moron?

riddle me this:
CVs of buzdar, 2 sarwars, makhdoom mehmood shah quraishi, fat fawad, sayed zulfiqar bukhari, the ugly mrasi who's rejoined PPP, 3 fat ladies (and a few more)
 

Strategy&Tactics

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I am worried about the crime rate and food insecurity. It will spike. People would steal each other`s resources.
I don`t see how it would bring a revolution, apart from misery.
 

Affan-khan

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No we are not. We have no liabilities, that could lead to default, due till 2024 currently. The issue is how do we navigate out of this mess so we don't run across liquidity crunch in the 2024 timeframe when the next bond payment is due.
we have to pay 73 Billion USD in next three years.
 

VCheng

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as was the last one. do you want to know how many PPP and PMLN criminals were (and most of them still are) surrounding advising the moron?

riddle me this:
CVs of buzdar, 2 sarwars, makhdoom mehmood shah quraishi, fat fawad, sayed zulfiqar bukhari, the ugly mrasi who's rejoined PPP, 3 fat ladies (and a few more)

But that places a responsibility on all of us to keep our collective eyes open and not fall for any false messiahs. Different is only as different does. If they all follow the same policies, they are not different.
 

Burger_King

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Yes, IK did have a plan which if given time, will bear fruit. Facts and figures clearly demonstrate progress made under IK. Anyone who claims otherwise is no different from a mullah that preaches that world is flat.

First: the problem. Growth requires energy. This is a basic equation for all societies be it Amreeka or Pakistan. Before shale boom, Amreeka financed its energy and other imports by printing USD. After development of US shale, Amreeka's energy production has increased significantly but country still depends on energy imports although to much lesser extent. Overall however, America still runs significant trade deficit which is financed by attracting capital and by printing USD.

Unlike USD, or EUR or JPY for that matter, PKR is not a reserve currency. So when Pak buys oil from Aramco, Pak has to pay for its purchase in USD. So how does Pak get access to USD? Through (i) exports (ii) remittances (iii) foreign investment (iv) loans (commercial and bilateral/multilateral).

Did IK's government achieve success in getting USD? Yes it most certainly did. Unlike under last government's tenure, exports and remittances rose significantly while country had access to commercial loan market (Eurobond). More importantly, country started building dams which should reduce energy dependency. But dams take time to build and until they come on-line, Pakistan's import requirements will keep going up especially given Pakistan's rapid population growth rate.

Given what I am saying is fairly obvious, question arises why did previous government not achieve what IK did in his short tenure? Previous government was bent on keeping exchange rate fixed which made exports uncompetitive and damaged policy credibility whose results are what we are seeing today. Even worse, reason for keeping overvalued PKR was that it made it cheaper for criminals to transfer money out of Pakistan. Another big screw up was putting up new power plants without optimizing cost of input.

Question also arises what has changed after RCO? Investors have long memories. They remember damaged done by Dar in his last tenure so they refuse to lend to Pak. Second, expats, being much smarter than average lullo, remembers that Dar's government has been a disaster for Pak. So rational response is to decrease remittances and investment (Roshan Digital). Result is Pakistan is experiencing a USD shortage. This is creating a vicious cycle since govt is restricting imports which are inputs to exports.

This is not to say IK is an angel. Rather than asking for blood, sweat and toil, Ik has been selling snake oil to awam in the form of recovery of stolen loot. Given good days did not materialise, awam's reaction was understandable especially given they dont know basics of international finance. On this front, sad to say, army high command is no different from average lulloo.

So we enjoy the show.
 

Burger_King

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Only those who are abroad can enjoy the show. Those who are in the show may noy be having such a good time. May be it is time for Act 2 soon.

I am not willing to awam or army leadership or even IK a free pass. Everyone must be held accountable. Don't complain, when voting is done on zaath, biraadari or ethnic lines. Don't complain when likes of Raja Riaz, Khalid Maqbool Siddiqui and Raja Rentals get elected time after time even when they don't have anything to show for their past tenures other than contempt for the awam on whose behalf they claim to rule.

And IK deserves to be held accountable for preaching simplistic solutions like Riyasath-ay-Medina in a country where average person will have no chance of getting justice from legal system within our lifetimes. I support IK because his heart is in the right place and he has delivered when given the chance. But his politics has been all over the place and he has made easy enemies of US government whose goodwill is very important for Pakistan's well being. Pakistan needs a statesman rather than a Che Guevera at the helm.

As for generals, given their own lifestyles, they will be the biggest losers if they system collapses. And they wont have anyone to blame but themselves.

Having said that, I am optimistic for the future. I have seen a lot worse and then a rebound. Society got a "shock therapy" over the last six months. We know where our leaders stand. We dont have anyone to blame but ourselves if we let them get away.
 
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VCheng

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Having said that, I am optimistic for the future. I have seen a lot worse and then a rebound. Society got a "shock therapy" over the last six months. We know where are leaders stand. We dont have anyone to blame but ourselves if we let them get away.

We will soon be able to see how your optimism is realized or not in the next few months, and then after the elections, whenever they are held.
 

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