Dar says reserves will increase to $15-16 billion by end of September

[farhan_9909]

Pakistan to get $2.6b next month

ISLAMABAD - Finance Minister Senator Ishaq Dar on Wednesday said that Pakistan would receive over $2.6 billion from different sources like World Bank, Asian Development Bank, Islamic Development Bank and United States under coalition support fund (CSF) by next month (May).

Ishaq Dar said, “The World Bank will also give approval for $11 billion for the next five years for Pakistan under Country Partnership Strategy- from 2015 to 2019 on May 1 2014”. However prior to it, “The World Bank will approve $1 billion for Pakistan on May 1 2014 for two projects of energy and revenue development programme”, said Ishaq Dar while addressing a press conference here to inform on economic situation and his tour to Washington and New York. He further said that World Bank would further approve $700 million for Dasu hydro power project and Sindh irrigation project in its meeting to be held in the end of May 2014.

Similarly, the Finance Minister informed that Asian Development Bank (ADB) would give approval for $400 million for Pakistan in its meeting on April 26. Meanwhile, the Islamic Development Bank would disburse $133 million in next few days. “United States is likely to reimburse $380 million out of pending $1.5 billion by the end of current month of April”, said the Finance Minister. On reserves, Ishaq Dar said that it would enhance to $15-16 billion by the end of September 2014, as earlier it was estimated to generate same amount of reserves by end December 2014.

Talking about the Eurobonds, the Finance Minister said that State Bank of Pakistan has received $2 billion on Wednesday (today) morning that helped in building the country’s exchange reserves to $11.67 billion. “The rate of interest on Eurobonds were neither higher nor it increased the public debt of the country, rather it will reduce the central bank loan”. The auction of bonds would provide financial benefit of $90 million annually, as country received loan at lesser interest (around 7.75 percent) in bonds as compared to the interest paid (12.25 percent on domestic banking borrowing. Pakistan received massive response from the investors on Eurobonds, as people were expecting to generate maximum $1 billion from it, which ended at $2 billion due to economic policies of the government. He informed that bonds have fetched the highest amount that Pakistan ever raised in a single attempt from international investors.

He said that International Monetary Fund (IMF) would review the economic situation of third quarter (January-March) of ongoing fiscal year from April 30 to May 8.

Talking about the economic situation of the country, Senator Ishaq Dar said that Pakistan’s GDP growth has recorded at 4.1 percent during first half (July-December) of the ongoing financial year 2013-14, which was 3.4 percent during same period last year. He informed that agriculture sector has recorded growth of two percent in July-December of FY2014 against 1.4 percent of last year. Industrial sector witnessed growth of 5.4 percent against 2.5 percent of last year and services sector 4.4 percent during period under review as compare to 4.5 percent of previous year.


Similarly, the Finance Minister said that revenue collection has shown growth of 16.4 percent during nine months (July-March) of the current fiscal year, as FBR collected Rs 1574 billion during period under review against Rs 1352 billion of the corresponding period of last year. The budget deficit has recorded at 815 billion (3.1 percent of the GDP) during July-March FY 2014 as against Rs 1046 billion (4.1 percent of the GDP) of previous year. Remittances have recorded growth of 11.9 percent to $11.58 billion, exports registered at $19.11 billion, showing an increase of 6.1 percent. Inflation rate has recorded at 8.5 percent during July-March FY 2014 as compared to eight percent of the last year. Large Scale Manufacturing sector has witnessed growth of 6.05 percent during seven months (July-January) of FY2014.

To a question on auction of telecom licences, Ishaq Dar said that government had budgeted $1.3 billion for the auction of 3G and 4G licences, which would be generated at the end of auction process. “The Auction Advisory Committee has now nothing to do with auction of telecom licences, as Pakistan Telecommunication Authority will conduct the process”, he added. “We are not bringing 3G and 4G to generate revenues but to improve technology and to create employment opportunities in the country”, maintained the minister.
Pakistan has asked the US-EXIM bank to provide loans for 20 years without government sovereignty, as it does with other neighbouring countries of Pakistan, as Islamabad receive loans for seven years with government sovereignty, he added

Pakistan to get $2.6b next month

 

[farhan_9909]

Dar eyes forex reserves at $15bn by end-Sept

ISLAMABAD: The first nine months (July-March) of this fiscal year (FY14) showed that the government has shored up the country’s dwindling reserves and improved macroeconomic indicators. However, this performance largely remains dependent on donors’ money, and not structural reforms.

Addressing a press conference on Wednesday, Finance Minister Ishaq Dar announced that the country’s reserves would reach $15 billion by end of September. He said he had made this announcement after reviewing the inflows that the country would receive, especially from the International Monetary Fund (IMF), the World Bank and the Asian Development Bank (ADB).

The country’s forex reserves reached $11.67bn. “The central bank received $2bn on Wednesday, which was raised through floating of Eurobond,” the minister said.

Dar elaborated on the government’s plans in securing loans from various quarters, but he was not willing to accept that it will enhance the country’s overall debt and its servicing liabilities.

Asked whether the government was planning to raise reserves through increasing exports and revenue base, the minister said the exports would rise by $2bn this year and notices were issued to people for bringing them on to the tax rolls. Pakistan is believed to be the worst tax-compliant country, where only 0.4 per cent of the total population pay taxes.

The minister said that during his talks with officials of the World Bank in Washington, two concessionary loans were agreed. “The bank would provide $1bn for energy and revenue development in the first week of May.”

The total credit limit for Pakistan is $1.7bn. Mr Dar said the government has already decided to construct both mega projects of Dasu dam and Diamer-Bhasha dam. Pakistan, he said, would receive $600 million for Dasu project and $100m for Sindh Irrigation System in the last week of next month.

He said the remaining requirements of Dasu dam would also be met by the World Bank, which would provide $3.2bn under the next aid programme. The country would also enter into a project partnership strategy with the World Bank under which it would get $11bn between 2015 and 2019.

Mr Dar also announced that the ADB would also provide programme loan of $400m in the first week of May. US Exim Bank, which grants concessionary loans to Pakistan’s neighbouring countries, has also been requested to the same for Pakistan, he added.

The finance minister also said the government would soon start dealing with International Bank for Reconstruction and Development (IBRD) for getting concessionary loans. He said he had received a message that the Islamic Development Bank (IDB) was also providing a $137m loan.

When asked that raising $2bn through bond would lead to increase in the debt, he explained that as much domestic debt in rupee would stand retired, there would be no increase in the national debt.

He said the domestic debt is averaged at 12.25 pc, while average of the cost of the bond would be 7.75 pc, resulting into a saving of about $90m. He claimed that the $90m will be an annual saving of the bonds.

Mr Dar also announced that Pakistan would also launch Islamic Sukuk bonds.

He said he had taken up the issue with US officials in Washington on pending payments of $1.5bn against Coalition Support Fund. “The country would receive $380m by the end of this month.”

Elaborating on the performance of the economy in the first nine months of the current fiscal year, the minister said the economy was on the upsurge and the government borrowing for budgetary support has narrowed to Rs815bn this year from Rs1,046bn in the year-ago period.

As a result, he said, the budget deficit was now at 3.1 pc in July-March of this fiscal year as against 4.6pc during the same period last year.

The overall economy grew by 4.1pc in the first half (July-December) of FY 14 as against 3.4pc over the same period of FY13.

Dar eyes forex reserves at $15bn by end-Sept - DAWN.COM

 

[Luftwaffe]

How? from his arse?

Getting loans and gifts and adding it on paper to FOREX to manipulate market and stocks until their government is about to be over and hand it over to interim govt nice game.

 

[rockstar08]

How? from his arse?

Getting loans and gifts and adding it on paper to FOREX to manipulate market and stocks until their government is about to be over and hand it over to interim govt nice game.

no from begging

 

[Luftwaffe]

no from begging

That included, by no means FOREX can jump that fast from $9B to $16B, in financial terms its completely fishy unless Pakistan has dig and sold reko dekh gold instantly no magic it took Bangladesh 5 years to raise their FOREX double that of Pakistan. Not even Bonds floating can be that helpful when Pakistan is a country under huge debt. Mark my words whenever pml-n government ends FOREX would be less than $5B at the most 7B.

 

[rockstar08]

That included, by no means FOREX can jump that fast from $9B to $16B, in financial terms its completely fishy unless Pakistan has dig and sold reko dekh gold instantly no magic it took Bangladesh 5 years to raise their FOREX double that of Pakistan. Not even Bonds floating can be that helpful when Pakistan is a country under huge debt. Mark my words whenever pml-n government ends FOREX would be less than $5B at the most 7B.

I agree with you ..I personally feel PML N govt will be end soon ... they try to boost economy by putting country on danger , and their policies have no long term benefits

 

[Leader]

How? from his arse?

Getting loans and gifts and adding it on paper to FOREX to manipulate market and stocks until their government is about to be over and hand it over to interim govt nice game.

I dont know for what they are taking this much loan, they are burdening economy just to do look good, instead of doing any real growth in the economy..

3G and 4G licence were suppose to generate 2 billion dollar, instead only 4 operators applied for 3G licence only, that make 860 million dollar in total... not a single foreign telecom operator showed interest in the auction...........totally screwed !

 

[Luftwaffe]

I dont know for what they are taking this much loan, they are burdening economy just to do look good, instead of doing any real growth in the economy..

3G and 4G licence were suppose to generate 2 billion dollar, instead only 4 operators applied for 3G licence only, that make 860 million dollar in total... not a single foreign telecom operator showed interest in the auction...........totally screwed !

Nobody wants to come to Pakistan they know zardaris and noora sharifs would keep asking for incentives and under the table kickbacks and bhatta.

 

[Leader]

Nobody wants to come to Pakistan they know zardaris and noora sharifs would keep asking for incentives and under the table kickbacks and bhatta.

Seriously what real FDI has nawaz's govt been able to attract in different industries since last 1 year?

 

[Donatello]

Nobody wants to come to Pakistan they know zardaris and noora sharifs would keep asking for incentives and under the table kickbacks and bhatta.

It's nothing different from any of the other developing nations of South Asia or Africa. These companies know how to deal with such issues. During Musharraf's time, Pakistan was growing very well, this doesn't mean that there was no corruption back then. It was.

Pakistan needs to tackle to issues on urgent basis. Energy and Law and Order.

Otherwise look at India, the amount of corruption they have, they shouldn't be getting any investment. But they do. Actually people i know who invested in South Africa tell how much corruption is prevalent over there.

 

[ziaulislam]

How? from his arse?

Getting loans and gifts and adding it on paper to FOREX to manipulate market and stocks until their government is about to be over and hand it over to interim govt nice game.

i am not a fan of PML N govt neither i voted from them here in peshawar but i still think you need to understand econmics before criticizing what they are doing.
i think the basic direction of economics is right there id no harm in floating bonds to shore up reserves orr to take loan from world bank.
however govt is not doing good in taxation and energy sector(losses still at sky high in electricty and gas=theft) as well as privatizing loss making institutions

 

[Luftwaffe]

i am not a fan of PML N govt neither i voted from them here in peshawar but i still think you need to understand econmics before criticizing what they are doing.
i think the basic direction of economics is right there id no harm in floating bonds to shore up reserves orr to take loan from world bank.
however govt is not doing good in taxation and energy sector(losses still at sky high in electricty and gas=theft) as well as privatizing loss making institutions

There is a detail program about floating bonds I hope I find the video if when you watch your mindset would change against this floating bonds. The basic direction is worst, where nawaz sharif and his brother needs to invest in hospitals, education, energy, oil-gas-mineral explorations...this government is spending like shiekhs on metro bus services go to Islamabad see the big board that says 50billion project metro bus do you honestly believe it? its not more than 6-8 billion there is nothing special about it. When your government is printing more money know that the direction of economy has curve going downwards.

Last if i were head of state first thing i would have done would be oust all foreign companies working in sectors exploring minerals, I would have bought machinery instead of renting and than trained local people to start working. Mark my words Pakistan can't dream big unless it explores all these iron, copper and gold and market it, there is nothing else left for Pakistan the service and other sectors are not good enough, we've got to jump in this Sector and not hand it over to foreign companies including China. If these two brothers were brilliant they would have formed committee and dedicated enough money to modernized Pakistan railways from ground up hand it over to China give them a deal % for say 5-7 years than reduce their profit and take over the charge we need ultra modern railway system imagine out of 19 crore population atleast 3 crore population travel monthly if they use modern railways services Pakistan can bag huge revenues PIA can than continue for mostly international-regional flights. If a person like me and you can come up with brilliant ideas why can't these rulers they can they just won't even so the costs are not huge their objectives is not to make Pakistan prosperous but to make it chaotic.

 

[Cheetah786]

Pardon my French wtf you geniuses were thinking when you elect uneducated 3rd grade fail politicians. Over and Over again?

 

[Hyde]

Our total reserves as of 11th of April are close to 9980 million dollars.

Imagine 3G and 4G fetches 1.2 billion dollars. You expect to get 50% within the next month (and remaining in the next 5 years)

That's 10 + 0.5 = That's about 10.50 billion dollars.

You get another 2.5 billion dollars as claimed by him. That's 10.50 + 2.50 = 13 billion dollars

May be one tranche of IMF will take it close to 13.50 billion dollars.

Then you have large import bills and pending payments to pay your employees which also soaks your money. Bring it back to 13 billion dollars....

I am not sure how it's going to be above 13 billion dollars unless he expects to receive another gift aid or I am missing something.

 

[farhan_9909]

Our total reserves as of today are close to 9980 million dollars.

Imagine 3G and 4G fetches 1.2 billion dollars. You expect to get 50% within the next month (and remaining in the next 5 years)

That's 10 + 0.5 = That's about 10.50 billion dollars.

You get another 2.5 billion dollars as claimed by him. That's 10.50 + 2.50 = 13 billion dollars

May be one tranche of IMF will take it close to 13.50 billion dollars.

Then you have large import bills and pending payments to pay your employees which also soaks your money. Bring it back to 13 billion dollars....

I am not sure how it's going to be above 13 billion dollars unless he expects to receive another gift aid or I am missing something.

The reserve stand at 11.67Billion dollars as of last week

Add

*1.2Billion dollars from 3g/4g Auction
*2.5Billion dollars they are to get in May.

Total=15.37Billion dollars