SBP's foreign exchange reserves fall a massive $846mn, drop to $16.2bn

[FOOLS_NIGHTMARE]

• Decrease due to external debt and other payments, says central bank
• 
• Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased a massive $846 million on a weekly basis, clocking in at $16.2 billion, showed data released on Thursday.
  
  The reserves decreased due to external debt and other payments, stated the central bank.
  
  Last week, SBP-held foreign exchange reserves were down $562 million, taking the cumulative fall to over $1.4 billion.
  
  Meanwhile, total liquid foreign reserves held by the country stood at $22.5 billion on January 21, 2022, stated the SBP. Net foreign reserves held by commercial banks stood at $6.3 billion.
  
  SBP-held forex reserves fall a massive $562mn, now stand at $17.04bn
  
  Pakistan has been looking to build its foreign currency reserves on the back of loans, remittances, and higher exports. However, foreign direct investment continues to be an area of concern for policymakers.
  
  The reserves level is critical for Pakistan to build an import cover with the bill crossing $6 billion each month, putting pressure on the currency that fell to its weakest level against the US dollar in December last year. It closed at 176.98 against the US dollar in the inter-bank market on Thursday.
• https://www.brecorder.com/news/4015...e-reserves-fall-a-massive-846mn-drop-to-162bn
  
  

 

[Norwegian]

Decrease due to external debt and other payments, says central bank

Why didn't you highlight this? Because it would expose the reason why current govt has to pay record debt repayments as left by previous govts

 

[FOOLS_NIGHTMARE]

as left by previous govts

LOL, this govt has taken more debts than the previous govts, it's probably more than 51 trillion, starting at 26 trillion.

Govt in violation of debt reduction law, cabinet told | The Express Tribune

A new debt policy statement for the last fiscal year on Tuesday revealed that the federal government’s burden was Rs11.8 trillion higher than legally allowed limit

tribune.com.pk

Jul-Dec: Pakistan incurs $9.432bn foreign debt

ISLAMABAD: Pakistan incurred foreign debt of $9.432 billion from multiple financing sources in the first half months...

www.brecorder.com

In a first, Pakistan's debt, liabilities cross PKR 50 trillion

The total debt and liabilities of Pakistan have crossed 50.5 trillion Pakistani rupees (PKR), of which the addition of PKR 20.7 trillion is under the current government alone, official figures released on Wednesday informed.

economictimes.indiatimes.com

 

[RealNapster]

Why didn't you highlight this? Because it would expose the reason why current govt has to pay record debt repayments as left by previous govts View attachment 811530

Pakistan should withhold PsdP spending for 2 years atleast. Provinces are already doing projects on their own hence the damage won't be that severe. Instead we can use this newly spared money on debt repayment or atleast reducing the budget deficit to zero for those two years.

 

[Norwegian]

LOL, this govt has taken more debts than the previous govts, it's probably more than 51 trillion, starting at 26 trillion.

Exactly to pay back record debts left by previous govt

 

[Wood]

Exactly to pay back record debts left by previous govt View attachment 811538 View attachment 811540

If you think that borrowing more to repay existing loans is the only way out of the current problem, then what is special about the current gov. ? Can anybody not do the same?

 

[Norwegian]

If you think that borrowing more to repay existing loans is the only way out of the current problem, then what is special about the current gov. ? Can anybody not do the same?

Special is record exports and remittances, which were absent in previous Pmln govt. This money can offset external debt repayments

 

[Wood]

Special is record exports, remittances, which were absent in previous Khota Biryani govt View attachment 811547 View attachment 811548

I suppose that time will tell if this is a sustainable trend. But I see what you mean

 

[Norwegian]

I suppose that time will tell if this is a sustainable trend. But I see what you mean

Yes, next year is election year and we will see if it's sustainable by then or not

 

[Riz]

• Decrease due to external debt and other payments, says central bank
• View attachment 811525
• Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased a massive $846 million on a weekly basis, clocking in at $16.2 billion, showed data released on Thursday.
  
  The reserves decreased due to external debt and other payments, stated the central bank.
  
  Last week, SBP-held foreign exchange reserves were down $562 million, taking the cumulative fall to over $1.4 billion.
  
  Meanwhile, total liquid foreign reserves held by the country stood at $22.5 billion on January 21, 2022, stated the SBP. Net foreign reserves held by commercial banks stood at $6.3 billion.
  
  SBP-held forex reserves fall a massive $562mn, now stand at $17.04bn
  
  Pakistan has been looking to build its foreign currency reserves on the back of loans, remittances, and higher exports. However, foreign direct investment continues to be an area of concern for policymakers.
  
  The reserves level is critical for Pakistan to build an import cover with the bill crossing $6 billion each month, putting pressure on the currency that fell to its weakest level against the US dollar in December last year. It closed at 176.98 against the US dollar in the inter-bank market on Thursday.
• https://www.brecorder.com/news/4015...e-reserves-fall-a-massive-846mn-drop-to-162bn
  

Now compare this 16 billion dollar reserves with 7 billion dollars which nawazu league left for Pakistanis in june 2018

 

[KaiserX]

Energy prices beta

This govt has to deal with energy/food/global inflation making such costs 2-3x more expensive. Nawaz was in power during a period of record low energy/food prices. Energy imports are pakistan largest import cost.

If it werent for energy costs/food/global inflation Pakistan would have almost no budget deficit

 

[Patriot forever]

Money went out in principal and interest payment, money will come in through sukuk launched next week.

This is why IMF programe is so important which gives us the ability to roll over our principal debt and make interest payment especially in the current global inflationary conditions.

We are in a classic debt trap, situation is better than a few years ago but we need the IMF for smooth rolling on the external front.

 

[Patriot forever]

LOL, this govt has taken more debts than the previous govts, it's probably more than 51 trillion, starting at 26 trillion.

Govt in violation of debt reduction law, cabinet told | The Express Tribune

A new debt policy statement for the last fiscal year on Tuesday revealed that the federal government’s burden was Rs11.8 trillion higher than legally allowed limit

tribune.com.pk

Jul-Dec: Pakistan incurs $9.432bn foreign debt

ISLAMABAD: Pakistan incurred foreign debt of $9.432 billion from multiple financing sources in the first half months...

www.brecorder.com

In a first, Pakistan's debt, liabilities cross PKR 50 trillion

The total debt and liabilities of Pakistan have crossed 50.5 trillion Pakistani rupees (PKR), of which the addition of PKR 20.7 trillion is under the current government alone, official figures released on Wednesday informed.

economictimes.indiatimes.com

Most of it is interest payment and devaluation effect, actual borrowing for government expenses has vastly improved.

Our economy has grown massively as well in rupee terms ( since you mentioned debt in rupees) from 30 trillion something to 50 trillion something. By the end of the current fiscal year our debt to GDP ratio will further come down.

Pakistan debt to GDP ratio has performed better in the last 3 years than 90% of the other countries in the world including Western countries. ( that is before the rebasing, rebasing is a normal exercise done everywhere globally and with it done our debt situation is not alarming by any means).

Our revenue situation is the main concern which makes our debt harder.
That includes both FBR collections on the internal front.
And our exports and remittances etc on the external front.

( Both these parameters have improved significantly but a lot more is needed).

The articles you posted are just printing figures and carry no worthwhile analysis. Our standard of financial journalism is very poor.

 

[S.Y.A]

Pakistan should withhold PsdP spending for 2 years atleast. Provinces are already doing projects on their own hence the damage won't be that severe. Instead we can use this newly spared money on debt repayment or atleast reducing the budget deficit to zero for those two years.

psdp is hardly ~900 billion out of total 8.4 trillion budget. total financing for 2021-22 budget was 3.99 trillion. and interest payments on past loans was 3 trillion. reducing 0.9 trillion PSDP is going to achieve nothing.

• Decrease due to external debt and other payments, says central bank
• View attachment 811525
• Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased a massive $846 million on a weekly basis, clocking in at $16.2 billion, showed data released on Thursday.
  
  The reserves decreased due to external debt and other payments, stated the central bank.
  
  Last week, SBP-held foreign exchange reserves were down $562 million, taking the cumulative fall to over $1.4 billion.
  
  Meanwhile, total liquid foreign reserves held by the country stood at $22.5 billion on January 21, 2022, stated the SBP. Net foreign reserves held by commercial banks stood at $6.3 billion.
  
  SBP-held forex reserves fall a massive $562mn, now stand at $17.04bn
  
  Pakistan has been looking to build its foreign currency reserves on the back of loans, remittances, and higher exports. However, foreign direct investment continues to be an area of concern for policymakers.
  
  The reserves level is critical for Pakistan to build an import cover with the bill crossing $6 billion each month, putting pressure on the currency that fell to its weakest level against the US dollar in December last year. It closed at 176.98 against the US dollar in the inter-bank market on Thursday.
• https://www.brecorder.com/news/4015...e-reserves-fall-a-massive-846mn-drop-to-162bn
  

so when are you, and all the noony-toons setting up factories or businesses that export stuff to help out Pakistan's economy?

 

[RealNapster]

psdp is hardly ~900 billion out of total 8.4 trillion budget. total financing for 2021-22 budget was 3.99 trillion. and interest payments on past loans was 3 trillion. reducing 0.9 trillion PSDP is going to achieve nothing.

It is. Last year we presented a budget where expenses were 578 billion more then revenues . By witholding PSDP spending for two years will give us a surplus budget for those two years. We can actually reduce the harmfulness of deficit budget on the overall economic standing.