Foreign exchange reserves all-time high at $20 billion

[datalibdaz]

ISLAMABAD: Pakistan’s foreign exchange reserves have crossed an all time high mark of US $20 billion on Thursday, said a statement issued here.

According to details, the reserves includes $15.24 billion that are with the State Bank of Pakistan (SBP) while another $4.83 billion are held by the commercial banks.

Finance Minister Ishaq Dar in a statement said that the level of foreign exchange reserves is a manifestation of the stability in the national economy that has been achieved due to the deep-rooted and comprehensive economic policies and reforms undertaken by the present government during the last two years.

He said all the international donor agencies as well as rating agencies now hold Pakistan’s economy positively. “We are now working for sustainable and inclusive growth, consolidation of the economic gains and employment generation,” he added.

Moreover, Prime Minister Nawaz Sharif congratulated the finance minister on this achievement.

Know more: Foreign exchange reserves near all-time high

Currency experts believe that higher reserves, particularly of the State Bank, help stabilise the exchange rate. Low SBP reserves attract speculation which directly hits the local currency, as witnessed in the recent past.

Foreign exchange reserves all-time high at $20 billion - Pakistan - DAWN.COM

 

[RazorMC]

Then why issue EuroBonds at those ludicrous rates??

 

[farhan_9909]

can't they use it for some major projects.

why not fund the 1.5Billion dollars Pakistan Iran Gas Pipeline with this?which in return can provide us with 4000MW of power

 

[simple Brain]

can't they use it for some major projects.

why not fund the 1.5Billion dollars Pakistan Iran Gas Pipeline with this?which in return can provide us with 4000MW of power

They will not do it, its all Political Propaganda mate, he is borrowing money from IMF and pouring it into the state bank reserves. Few weeks later you will hear again that the foreign reserves are now 18 Billion. He thinks he and his party can make Pakistani People fool for as long as they want, and they have succeeded in that. Their International banks are receiving funds from different overseas banks, how come? Who is paying them, and what services are they providing, no one knows about that.

 

[cloud_9]

can't they use it for some major projects.

why not fund the 1.5Billion dollars Pakistan Iran Gas Pipeline with this?which in return can provide us with 4000MW of power

It's a reserve to stabilise the currency not a savings account where you put your extra disposable income.

 

[Great Sachin]

It is IMF reserve ....

 

[pak avatar]

Title should have be "Foreign Loans/debt servicing at all time high"

 

[farhan_9909]

It is IMF reserve ....

until now Pakistan has only recieved about 4Billion dollars from IMF with about 2.5Billion dollars remaining as per the program

 

[Kambojaric]

until now Pakistan has only recieved about 4Billion dollars from IMF with about 2.5Billion dollars remaining as per the program

Correct me if im wrong but the three main reasons for the rise in the foreign reserve are in no specific order?

1) Privitization
2) Loans/eurobonds
3) Reduction in budget deficit

 

[JohnyD]

how long will it last if pak is on war or under sanction?

 

[nForce]

how long will it last if pak is on war or under sanction?

My guess, one more year, before they start cutting down budgets in apparent manner.

Good job by Pakistan btw.

 

[AZADPAKISTAN2009]

Congrats to government on reaching the mile stone we want to reach 50 billion mark

 

[Faiez]

Correct me if im wrong but the three main reasons for the rise in the foreign reserve are in no specific order?

1) Privitization
2) Loans/eurobonds
3) Reduction in budget deficit

Wrong. The reasons are (and I think in proper order) :

1. Low oil prices (now less dollar spent on buying oil which was a big part of import bill).
2. Higher remittances. (During PPP gov, people left pakistan like crazy, now these people are sending money back after settling abroad)
3. Loans.
4. Receipts from privatization.

 

[Bouncer]

1. Low oil prices (now less dollar spent on buying oil which was a big part of import bill).
2. Higher remittances. (During PPP gov, people left pakistan like crazy, now these people are sending money back after settling abroad)
3. Loans.
4. Receipts from privatization.

Spot on. Though the receipts from privatizations are less than a billion USD so far. And most of the expats do not send USD (like cash USD), they go through banks and transfer companies like Western Union who buy PKR for the expats, so technically those USD, Riyals, GBP etc do not enter Pakistan.

 

[P.K.]

Chinese investments of $ 50 Billion in CPEC should raise Forex Reserves to newer greater heights