Country to achieve $20 billion forex reserves mark soon: Dar

[Force-India]

There is no hatred in my post. I just warned him, calling me names, questioning my flag like idiots or doing anything won't be tolerated as that's what the Indian members do. You guys don't write back facts but start to question other person and troll. So there is no hatred here. I am willing to debate nicely. No personal stuff!!! Here is a quote from his post. You can CLEARLY see where he was headed with this:

So tell me WHERE in the above post is "opinion", this is trolling. No one was even talking about India. It was about Pakistan's growth. You don't want to be bit*ched out, play fair and factual. That's it.

Read this guys part in bold. There is sheer hostility coming out of his post when there was no need to, and there are 0 facts!!! And that's a civil discussion? This is "classic trolling" in everyone's books!

Read that again sometime later. Its totally based on facts. He is talking about current situation and you are talking about future. He don't agree with you but doesn't mean he is surely right. No one knows the future. You are being optimistic about your country's economy which is great .

As an engineer , i don't know much about economics and how banks works. but
Forex reserves hit three-year high of $17.491 billion - thenews.com.pk

read some further that article. it mention from analysts that 30% of the reserves are on loans.
not sure. educate me incase (very possible) i am wrong.

Loan adds to foreign exchange reserves.
http://www.imf.org/external/pubs/ft/bop/2007/pdf/chap7.pdf

Although i am not sure about foreign aid.

 

[RealNapster]

Loan adds to foreign exchange reserves.
http://www.imf.org/external/pubs/ft/bop/2007/pdf/chap7.pdf

Although i am not sure about foreign aid.

Lol. summary please !! Tired of reading.

 

[Force-India]

Lol. summary please !! Tired of reading.

Although its not clear if this loan is given to government or given by government to non resident Pakistanis for education etc.

 

[Force-India]

WOW ? Now Pakistan can buy more arms from China .Well done.

When you don't have money you wish to destroy others. But when you have money your mindset changes, thats why a stable and prosper Pakistan is good for the region.

 

[Viper0011.]

WOW ? Now Pakistan can buy more arms from China .Well done.

Just like you've been on a shopping spree of weapons like Paris Hilton shops clothes in France!!!v. Its all relevant.....its all $$. You have them, Pakistanis also have them for their size and needs. Life is great. Its like a Hollywood movies....everyone's driving sexy cars of their choice you know....

 

[farhan_9909]

if we sort out the problem of falling export

we can clock above 40Billion dollars reserves by before the next general elections

 

[pak avatar]

FDI is foreign direct investment......you realize what it means right? If a country like Turkey or China give a project's share to the government of Pakistan to execute (which then goes to the construction companies, the rod building engineers from the military core of engineers, etc, etc), it is NOT a direct form of investment. In this case, its a secondary channel.

Also, do you have any PROOFS of this being all "LOANED" money? . I would LOVE to see you provide a breakdown of $ 19 billion in savings account, and its breakdown with loan amounts, and bank names.

No bank will loan you the money to keep in your savings account if you have a clue about how banking works!!!

I don't understand, why a country's OWN citizens don't appreciate their OWN country going up in world rankings.

People with your mentality, should tell their rich parents to allow you to invest in the UK so you can live there. IK's half the family is British so you'll feel like home. Nice and clean.

My friend by Loaned money i mean foreign DEBT, by IMF, ADB and others. When the govt borrows money it isnt kept in Saving accounts, its kept with the SBP. Believe me i will be as happy as u when my country prospers but sadly that isnt the case, this is nothing but PR spinning. China has devalued its currency, our exports are falling, the rupee has to fall in order to support our exports especially our textile sector. Every business Chamber of Commerce and trade Association is cursing Ishaq Dar for F***king the economy.

In case of Stock Market u mentioned, daily FIPI(foreign investment) is $+/- 1m only, not the trillions u are claiming to be invested. KSE Market Capitalistaion as of July 2015 is only Rs7326billion which converts to only $75Billion.

 

[Danish saleem]

Hope they cross 30 bn next year

next year 23 Billion will be crossed, and 30 Billion in next 5 years Ins sha Allah

Im sorry that is totally wrong, there has been minimum if any FDI in Pakistan. All this so-called Forex is nothing but Loaned money.
and the purpose of these loans is not some Mega Project which will make/save billions, its only to pay for our budget deficit and brag look look we have $20b in reserves

Greece 2.0

Brother,

Increase in foreign Exchange reflecting the Positive Current Account, and Positive Current Account means, the Higher Inflows as compare to outflows.
So in my opinion this is because of low oil prices, which is impacting the current account .

and this is also my 1000th Post.

 

[mr.robot]

FDI is foreign direct investment......you realize what it means right? If a country like Turkey or China give a project's share to the government of Pakistan to execute (which then goes to the construction companies, the rod building engineers from the military core of engineers, etc, etc), it is NOT a direct form of investment. In this case, its a secondary channel.

Also, do you have any PROOFS of this being all "LOANED" money? . I would LOVE to see you provide a breakdown of $ 19 billion in savings account, and its breakdown with loan amounts, and bank names.

No bank will loan you the money to keep in your savings account if you have a clue about how banking works!!!

I don't understand, why a country's OWN citizens don't appreciate their OWN country going up in world rankings.

People with your mentality, should tell their rich parents to allow you to invest in the UK so you can live there. IK's half the family is British so you'll feel like home. Nice and clean.

Have you even read the article? It mentions the primary reasons of growth unlike to your claims of FDI and blah blah

Two major events have supported the central bank to improve its reserves. First, low oil prices in the international market helped the country save a substantial amount on account of import bill, and, second, remittances from overseas Pakistanis grew by 16pc year-on-year to $16.63bn during the 11 months through May.

Remittances are now more important than exports growth since the export sector has failed to achieve targets for the last many years despite incentives, including low interest rates on borrowing from banks.

 

[pak avatar]

next year 23 Billion will be crossed, and 30 Billion in next 5 years Ins sha Allah



Brother,

Increase in foreign Exchange reflecting the Positive Current Account, and Positive Current Account means, the Higher Inflows as compare to outflows.
So in my opinion this is because of low oil prices, which is impacting the current account .

and this is also my 1000th Post.

Congrats on ur 1000th post

U r right low oil prices have helped greatly but we still have a current account deficit so that still means a net outflow of Forex. and thus we borrow to maintain our forex

 

[Danish saleem]

Congrats on ur 1000th post

U r right low oil prices have helped greatly but we still have a current account deficit so that still means a net outflow of Forex. and thus we borrow to maintain our forex

Brother,

Our Current Account is not in deficit, that's why our foreign Exchange reserves increasing, and secondly what ever we borrow from IMF, is returned when we pay them back the instalments of previous borrowing.

the Only factor is oil Prices, because when the oil is around $70- to $90 per barrel, our net Oil import was around 15 to 18 Billion dollars. so now the prices were decreased so our import of Oil will be around 10 Billion to 13 billion, which helps 2-4 billion annual saving, with the result of increasing foreign exchange.

Another factor is foreign increasing remittances by the Pakistani's living outside Pakistan, which is around 14-16 billion dollars per annum.

And according to me, a hidden factor is that sharif's have very good relations with Arab kings, to i think, we also getting oil on deferred payment also, which is also impacting on foreign Exchange.

 

[Manindra]

So what's your point behind all this gibberish? India was in worst condition in 1995..... "SOMEONE" came in and rescued them. You should put Bill Clinton next to Gandhi in India. It was his strategy sold by Rao and Singh from India, begging to help the Indian middle class to come up so the country can be a "hedge" against the Chinese. Thus, hundreds of billions of outsourcing to India, including American jobs!!!

We faced near default situation in 1991 not 1995 so obviously nobody goes to Bill Clinton for begging as (he was not president then) nor that time US president but IMF.
The hundred of billions of outsourcing to with the deal of opening Indian economy to American mega corporations.

So if your econmy solely grew and survived on American jobs, why would it be SO STRANGE for Pakistan to do so?

This laughable claim could not be made by Yankees forget Desi immigrant American

In fact, they are not getting anyone's jobs, they are building their infrastructure and ports INTERNALLY. So if the US and Indian relationships go bad, the US can (and will) bring its investments back. We've been there done that many times.

For your kind information US never invest large sum barely $ 10 billion for country like India in 5 years.

But, if the Chinese and the Pakistanis get ticked off at each other, there is no "jobs" that China will bring back, they can get their money back, which Pakistan can pay starting in the next three or four years. But the infrastructure, ports, contracts with Central Russian states, Pakistan's own imports and exports and mineral trade, China can't take.

No one a little knowledge of economy can deny that.

When people like you, who write out of hate and with an enemy-eye, it just sounds like a girl on periods. All enemy crap, no sense, just like there is 0 economic or financial logic behind your post.

@Spectre is a very knowledgeable & good poster (as his post history suggest ) neither does his post filled with any illogical or hateable content. Where does you get these impression.

In the next 5 years, India should be ready to see what I call is the "ultimate face off" economically, a MILLION Pakistan high tech software engineers will be hitting the world markets. All trained in the future tech, that is the Mobile Systems Development. Not legacy crap that now goes to India. So India is about to see some serious competition in her high-tech sector.

Then what does our series of IIT & NIT qualified engineers do ? Peeling potatoes
What does our billion dollar software giants will do ? Start hiring Pakistani Engineers.
Well, due to our Digital India Mission domestic demand of softwares & services also increasing very fast.
And you are forgetting that we didn't reached our true potential yet, so with millions of proffessional passing out our academies every year , Pakistan can challenge us after 20 year when we go ahead with upper value chain.

India is and has been stable based on the Western investments. Pakistan is now very stable too (even with RAW sponsored terrorism inside Baluchistan, Karachi, etc). And its only getting better.

First time I heard that a country is stable due to investment neither all those pseudo economist tell us stable your country to get investment.

By 2018, Pakistan will have $ 45+ billion in her savings account....meaning it can buy whatever weapons package on urgent basis and pay CASH. By the way, this $ 45 billion is "In Addition" to the Defense budget at the size of $ 10-12 billion, which is expected to reach that of Turkey's by 2020 (around $ 16-18 billion).

Since when foreign reserves are being called saving account neither Argentina have $ 33 billion in their kitty still they have to settle on 40 year old IAI Kfir Fighter plane.

If you respond to this post, come back with facts. No need to show us your anger, frustration or even getting personal please. That's the usual response you get from Indians every-time there is a thread outlining something Pakistan succeeded in. Getting personal, calling names or writing silly frustration will make me request mods to ban you. And I'd rather have a good debate on facts, then asking people to get banned.

Too much rhetoric on single paragraph despite your own version is castle on the sky.

 

[pak avatar]

Brother,

Our Current Account is not in deficit, that's why our foreign Exchange reserves increasing, and secondly what ever we borrow from IMF, is returned when we pay them back the instalments of previous borrowing.
.

A little research before commenting please
2014-15: Current account deficit shrinks by $850m - The Express Tribune
Fiscal Year 2015: current account balance down 27 percent | Business Recorder

Wat we return to the IMF is interest payments, not the principal, when we have to repay the principal then u will see where are reserves actually stand

 

[Danish saleem]

A little research before commenting please
2014-15: Current account deficit shrinks by $850m - The Express Tribune
Fiscal Year 2015: current account balance down 27 percent | Business Recorder

Wat we return to the IMF is interest payments, not the principal, when we have to repay the principal then u will see where are reserves actually stand

No brother, when any country borrow finance from IMF, then on that day its decided, that in how many installments, that debt will be returned.
so when we made payment, its always principle amount with interest!

i agree with you post, but few things, out side that current account also impacting the current account, which is my point.

 

[ziaulislam]

they were all time high in zardari era too. no i am not cynical this is good but we must have a close eye on under lying indicators that are doing average to good

three major areas of poor performance are energy, taxation and exports, where we have seen fall in statistical performance benchmarks

falling exports mean, negative balance..i wonder for how long can we maintain reserves with bonds, IMF, privatizations and other inflows