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$17 billion is next target for foreign exchange reserves: Dar

farhan_9909

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ISLAMABAD: Minister for Finance, Ishaq Dar Wednesday said the government's next target for foreign exchange reserves was US $17 billion which would be achieved with its extra ordinary efforts.

"Our team has set a new target and that is to take our foreign exchange reserves to $17 billion and with the help of the Allah Almighty we shall make every possible effort to achieve this target", Ishaq Dar said in a meeting with Country Director World Bank, Rachid Benmessoud here.

The two leaders discussed important matters regarding future development roadmap of the country.

Benmessoud formally informed on behalf of the World Bank Management that Pakistan has again become eligible for availing the International Bank for Reconstruction and Development (IBRD) funding after a lapse of three years.

IBRD funding facility was suspended in March 2012 because at that time Pakistan could not fulfill the required conditions regarding macro-economic stability.

As Pakistan is now maintaining foreign exchange reserves of more than 2.5 months of projected imports and has satisfied other criteria of World Bank under the Country Partnership strategy (CPS), it will now be able to avail $2bn worth of IBRD funding during the four year period of Fiscal Years 2015-2019.

Benmessoud appreciated the continuous improvement in the macro-economic indicators including significant growth in FBR revenue as well as GDP, low inflation, cut in budget deficit and improving foreign exchange reserve position of the country which has played a pivotal role in restoration of this facility.

When the present government assumed responsibilities, the State Bank of Pakistan reserves were very low and after making repayments of foreign loans obtained by the previous governments the SBP reserves touched $ 2.82 billion in February 2014.

But corrective measures taken by the country's leadership brought the economy back on track and on February 11th this year the reserves touched $16 billion including over $11 billion with State Bank of Pakistan.

Benmessaoud also appreciated the efforts of the present government for uplift of the economy and felicitated the Finance Minister for his untiring efforts aimed at improving the economy and building a positive image of the country.

He said, "The WB team was happy to cooperate with Pakistan and its leadership keeping in sight their commitment to development."

The current IBRD facility will be utilized for priority infrastructure projects, said the Finance Minister.

This facility will help in realizing the vision of the Prime Minister for the economic development of the country.

He thanked Mr. Benmessaoud for his cooperation with Pakistan in its efforts for economic development.



Copyright APP (Associated Press of Pakistan), 2015

$17 billion is next target for foreign exchange reserves: Dar
 
This include foreign deposits from overseas Pakistani. Foreign exchange reserve should be from export.
 
He's gonna loan millions from banks of their friends too in coming days

Its not that easy these days. Private banks will not give you a loan based on your political affiliations and they will not write it off either. As far as I know, only National Bank is yet to be privatized and I haven't read about any such scandal even in Zardari's time. There have been other ways of corruption, but not this one.

I feel awefully terrified when I hear the words "next target" coming from Ishaq Dar.

You have to appreciate the good work he is doing. Admittedly this is not the ideal way to shore up reserves (loans, bonds etc) but given our situation this is nothing short of a miracle that we have these reserves today (meager though) when a few months back there were whispers of a bankruptcy.
 
is it possible for our reserves to reach 20Billion dollars mark until this june/july?
 
Its not that easy these days. Private banks will not give you a loan based on your political affiliations and they will not write it off either. As far as I know, only National Bank is yet to be privatized and I haven't read about any such scandal even in Zardari's time. There have been other ways of corruption, but not this one.
Govt of Pakistan 'll loan not chacha dar for himself. We'll see that reserves are going up and they 'll waste it and we'll keep paying back.
Btw that money launderer can also start the 'good work' by increasing the tax net and bring back all our money around the world. But, I'm sorry why should he do it?
 
is it possible for our reserves to reach 20Billion dollars mark until this june/july?
Well possibility is always present but it is the probability that counts. The situation in middle east gives such probability provided some reserves are transferred specially from Jordan & Syria
 
is it possible for our reserves to reach 20Billion dollars mark until this june/july?
its even possible to get to 30 billion dollars if go for bonds with high base points as it has been done before.

problem be that when they mature we will end up in Greek like situation.

i dont object to building some reserves for stability and availing funding like mr. Dar just did but more reserves should be build genuinely not on foreign bonds

govt hsould build reserve by increasing exports and ending up in positive fiscal balance. although trend is for decrease in exports
 
Rise in foreign exchange reserve is certainly a positive development but the next target should be to reduce the foreign debt.
 
the comments on this thread clearly show that even educated people don't know how a decrease or increase in a country's reserves happen.

It is sad i thought people here were educated and understood finance i guess not.

No magic wand can prop up a nations foreign reserves.
 
2017 is gonna be dangerous for pakistan .... lots of repayments coming up :lol:
 
2017 is gonna be dangerous for pakistan .... lots of repayments coming up :lol:

Instead of wasting precious internet bandwidth, please improve your linguistic skills in English, so that the average American can understand you properly, when the call is directed to your BPO office.
 
Instead of wasting precious internet bandwidth, please improve your linguistic skills in English, so that the average American can understand you properly, when the call is directed to your BPO office.
What do you mean ... I am steve from Michigannnn
 
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