dollar at 2 years low - 96 rupee = 1$

[dawn_news]

Its simply a factor of Saudi hand out and the news about $2 billion Bonds sale by Pakistan. Pakistan is trying to shore up the Rupee by increasing reserves thru debt. Not a very sane strategy imo

Another gift of $1.5 billion is expected this year, as long as they are coming everything is all right

 

[farhan_9909]

$ 1.5 billion represents 20% increase in Pakistan's foreign reserves, translating to approx 13% increase in Rupee value. Nothing strange about it.

I remember the 1.5bn Dollars only increased the reserves to 8.7billion dollars,The rest of the increase was from other mean.

We cannot ignore a historic increase of 18% in export aswell.I was watching the TDAP main points where they mentioned how the export will be doubled only within 3years to 50Billion dollars.

reserves's are expected to reach 16billion dollars by this year end.infact it will increase to 13Billion dollars within the next 3months by getting 1.5Billion dollars more from KSA and upto 2Billion dollars from 3g/4g auctions,800million from etisalat are also to be recieved in may.

By 2014 end,The rupee value might have dropped to 90 against a dollar

 

[Khan_patriot]

And what is the difference now? I am not saying 60 was good! I am from an era when it was about 26-32 for a very long time!

You are that old....
What are you? A grandma or something....

 

[karan.1970]

I remember the 1.5bn Dollars only increased the reserves to 8.7billion dollars,The rest of the increase was from other mean.

We cannot ignore a historic increase of 18% in export aswell.I was watching the TDAP main points where they mentioned how the export will be doubled only within 3years to 50Billion dollars.

reserves's are expected to reach 16billion dollars by this year end.infact it will increase to 13Billion dollars within the next 3months by getting 1.5Billion dollars more from KSA and upto 2Billion dollars from 3g/4g auctions,800million from etisalat are also to be recieved in may.

By 2014 end,The rupee value might have dropped to 90 against a dollar

All other factors are either futuristic or long term. None of which have a sudden impact on currency rates. These rates have such a knee jerk reaction either as a correction or in response to a major inflow/outflow of forex. The 2 immediate and instant inflows in Pakistani economy are primarily 1. Saudi cash 2. Plan to raise 2 billion USD on extremely high interest rates (7.25% against 5.125% as given by Sri Lanka)

In an effort to strengthen its foreign currency reserves, the government on Wednesday raised $2 billion from the international debt market at very high prices. The interest rates that it agreed to pay were 5.6% above the US treasury rates.

Analysts fear that the positive impact of $2 billion on the foreign currency reserves could be largely eroded because of higher than estimated trade deficit.

The widening trade gap would have a direct bearing on the current account deficit, which would be bridged with the help of foreign currency reserves held by the State Bank of Pakistan, they added.

July-March: Trade deficit at $13.9b, leaves behind IMF estimate – The Express Tribune

 

[farhan_9909]

All other factors are either futuristic or long term. None of which have a sudden impact on currency rates. These rates have such a knee jerk reaction either as a correction or in response to a major inflow/outflow of forex. The 2 immediate and instant inflows in Pakistani economy are primarily 1. Saudi cash 2. Plan to raise 2 billion USD on extremely high interest rates (7.25% against 5.125% as given by Sri Lanka)


July-March: Trade deficit at $13.9b, leaves behind IMF estimate – The Express Tribune

No,They are not.

*upto 2Billion from 3g/4g auctions are to be recieved till mid may,
*800million from Etisalat also in may
*1.5Billion dollars more from KSA this year.

With the improvement in the Economy and the growth rate picking up,Paying the debt back won't be a problem.

Ishaq Dar is a qualified person as it was impossible to turn the Economy on right path within the first year.

 

[karan.1970]

No,They are not.

*upto 2Billion from 3g/4g auctions are to be recieved till mid may,
*800million from Etisalat also in may
*1.5Billion dollars more from KSA this year.

With the improvement in the Economy and the growth rate picking up,Paying the debt back won't be a problem.

Ishaq Dar is a qualified person as it was impossible to turn the Economy on right path within the first year.

Dude, the 3G/4G auction is still iffy as the case is still in courts
3G, 4G licenses to be auctioned on April 23 in Pakistan: PTA | The News Tribe

800 million from Etisalat is still iffy

PML-N govt fails to recover $800mln from the buyer of PTCL | Pakistan Tribe

1.5 billion additional from SA is still a handout.. So net net, the only certainty is the Saudi Bailout money and the 2 billion being raised via debt

 

[karan.1970]

Dude, the 3G/4G auction is still iffy as the case is still in courts
3G, 4G licenses to be auctioned on April 23 in Pakistan: PTA | The News Tribe

800 million from Etisalat is still iffy

PML-N govt fails to recover $800mln from the buyer of PTCL | Pakistan Tribe

1.5 billion additional from SA is still a handout.. So net net, the only certainty is the Saudi Bailout money and the 2 billion being raised via debt

Just to add a clip from Reuters that will clarify this for you

Saudi Arabia loans Pakistan $1.5 billion to shore up economy| Reuters

(Reuters) - Saudi Arabia loaned $1.5 billion to Pakistan last month to help Islamabad shore up its foreign exchange reserves, meet debt-service obligations and undertake large energy and infrastructure projects, Pakistani officials have told Reuters.

The Saudi assistance has contributed to a sharp recovery of the Pakistani rupee, which rose to a nine-month high of 97.40 from 105.40 against the dollar between March 4 and 12, its strongest rally in 30 years.

"On a personal guarantee of the prime minister, Saudi Arabia has given $1.5 billion, which has helped bail out the rupee," one senior Pakistani government official close to the deal told Reuters, requesting anonymity as he was not authorized to disclose the source and purpose of the funding.

The governor of the Saudi central bank declined to comment, and officials gave no details of the loan terms.

Another top official who is based in Lahore said the money went into an account known as the Pakistan Development Fund set up to channel money from "friendly countries" like Saudi Arabia and the United Arab Emirates.

"We have a promise of a total $3 billion, of which $1.5 billion has been received so far," the second official said. "Most recently, we got $750 million from the Saudis."

Pakistani Prime Minister Nawaz Sharif has long enjoyed close relations with the Saudi royal family. After his second term as prime minister was ended by a military coup in 1999, he was sent into exile in Saudi Arabia.

Prince Alwaleed bin Talal, the Saudi financier and member of the House of Saud, has described Sharif as "Saudi Arabia's man in Pakistan".

Pakistani Finance Minister Ishaq Dar confirmed on Wednesday that $1.5 billion was received under the development fund but declined to comment on the source.

"Why do you want to expose our friends?" he told reporters. "The countries who have helped us don't want us to disclose the source."

NEW FUND

Dar announced the creation of the new fund on February 18, the same day Saudi crown prince and deputy prime minister Salman Bin Abdulaziz Al Saud concluded a three-day-visit to Pakistan.

Pakistan's new army chief, General Raheel Sharif, also met King Abdullah and top Saudi military commanders during a trip to the kingdom two weeks before the new account was set up.

Other high-profile Saudi visitors to Pakistan this year have included Saudi Foreign Minister Saud Al Faisal and Prince Salman bin Sultan, the country's deputy defense minister.

According to the finance ministry, gross official reserves -

including the latest injection of $1.5 billion - stood at $9.52 billion on March 11. A third loan tranche of $550 million from the International Monetary Fund, expected before the end of March, will push reserves close to $10 billion.

Pakistan is expected to receive $150 million from the Islamic Development Bank in March, as well as $150-200 million under the Coalition Support Fund, reimbursements for assistance in the U.S.-led coalition's Afghanistan war effort.

Pakistan will also launch eurobonds of $500 million in May and plans to raise billions of dollars in privatization revenue by June.

An increase in foreign investment and remittances by overseas Pakistanis have also helped lift the rupee. Remittances increased by 11 percent to $10.2 billion during the first eight months of this fiscal year.

The finance ministry has also attributed the currency's recovery to punitive action against exporters withholding export receipts abroad and warnings to foreign exchange speculators.

 

[dawn_news]

Dude, the 3G/4G auction is still iffy as the case is still in courts
3G, 4G licenses to be auctioned on April 23 in Pakistan: PTA | The News Tribe

800 million from Etisalat is still iffy

PML-N govt fails to recover $800mln from the buyer of PTCL | Pakistan Tribe

1.5 billion additional from SA is still a handout.. So net net, the only certainty is the Saudi Bailout money and the 2 billion being raised via debt

??

Read your article, auction will be held this month. So wait couple of weeks for 3g/4g. And Etislalat will need to give $800 m, i hope ganja take this matter to friendly Arab country.

Just to add a clip from Reuters that will clarify this for you

Saudi Arabia loans Pakistan $1.5 billion to shore up economy| Reuters

This is gift not loan.

 

[karan.1970]

??

This is gift not loan.

The paper is being polite trying to couch a handout as a loan

 

[dawn_news]

The paper is being polite trying to couch a handout as a loan

Just a gift from friends,

 

[ziaulislam]

loans dont matter, unless your debt is too high to manage.
regarding cirrency value, i think govt should keep it around 98. a too much increase wil become a negative for exports.
they can valuate the currency later if they want but currently govt has to manage the trade and current account deficit

 

[Dubious]

You are that old....
What are you? A grandma or something....

 

[VCheng]

So if the trade deficit got reduced by 5.5% it is better not worse. I am sure it's not difficult to comprehend, try a tad harder, you can do it!

So if a ship is still sinking, but 5.5% slower, is the endpoint any different?

 

[Bilal.]

So if a ship is still sinking, but 5.5% slower, is the endpoint any different?

Flawed example, many economies have/have had trade deficits and have been able to remain viable and some have been able to move into surplus category. So while a sinking ship is doomed a trade deficit is not an irreversible death blow to an economy. Add to that our significant remittance and the situation is not as bad as you are making it sound.

 

[VCheng]

Flawed example, many economies have/have had trade deficits and have been able to remain viable and some have been able to move into surplus category. So while a sinking ship is doomed a trade deficit is not an irreversible death blow to an economy. Add to that our significant remittance and the situation is not as bad as you are making it sound.

Okay, tell me how many years has Pakistan ever posted a trade surplus on an annual basis? You are in denial of the fact that Pakistan is growing poorer and poorer as times passes by, in relative terms to other countries. Yes, the situation is that bad and growing worse. Denying it won't make it go away unfortunately. Menu koi faraq nahi painda, tussi nahi manna tey na manno.