High forex reserves not the outcome of IMF loans: Dar

[RoadRunner401]

No one's making anything personal. I stated facts. People who have no clue on economy and government lending, shouldn't post gossip on such serious topic. Go get educated first.

Hey genius, outside of propaganda and "gossip" like your leader IK, do you have facts??? How about you pick three projects and cases where the funding came in and was sent to the savings account

If you have no educational and professional background in a topic, you should refrain from making statements like you are the Chief Economist of some place. Give facts, not your hurting rear in your post.

Second, there is no excuse, the government has and is making plenty of progress, despite IK's efforts to stop the government, or take them down by violence and force. So he can come in and claim everything the current government has worked hard for.

This is how "Feeders" work, they try to take credit for other people's work and try to topple the government with lying, accusations and Hitler's tactics. The LEADERS on the other hand, stay low, keep making progress and get things done. But everything depends heavily on political stability that IK doesn't want to provide as he doesn't want these people to succeed (and Pakistan to succeed), as he doesn't have anything to show in comparison.

So its easy to talk these people to death and bring them down, vs. going in with a portfolio of projects done by NS's team, and IK has no actual work comparison.

Show us the little Europe the KPK has become due to IK's superior verbal warfae (LOL), where Mercedes now manufactures cars as its such a RICH state with SO much demand of high end cars due to people's living standard gone so high due to IK's government

You claim there is no excuse, yet you continue to beat the same old excuse drum.

Same B.S line IK this and IK that, as I said, it used to be excused used by corrupt to the max Politicians military stopped us from implementing reforms and now its being changed with IK.

G.O.P is not responsible for drop in oil prices, as claimed by PML-N when it reduced the petrol prices in the country. That's saving billions of rupees per year again nothing to do with PML-N policies

Remittance increase, again had nothing to do with PML-N policies

National Debt of Pakistan

LAHORE: (PR) “The PML-N government (which claims breaking the begging bowl) is blindly adding to the country’s debt. Pakistan’s total public debt has galloped to US $ 149 billion, of which foreign debt is over US $ 65 billion and domestic debt is about US $ 84 billion as of July 2014. This makes every Pakistani indebted to $ 825. The current Debt to GDP ratio is 64.27 %, violating the Fiscal Responsibility and Debt Limitation Act (FRDLA). This is bleak situation. The Nawaz government is constantly taking new loans and stealing from people’s pockets through imposing heavy taxes and billing in order to repay the IFIs and creditors. The government must stop blind borrowing, generate revenue through progressive taxation and set up debt audit commission to dig out illegitimate debts”.
These views were expressed by speakers at a press briefing, jointly organized by Institute for Social and Economic Justice (ISEJ) Campaign for Abolition of Third World Debt (CADTM Pakistan) and Tax Justice Roundtable, in connection with Global Week of Action against IFIs (8-15 Oct 4) at Lahore Press Club, Wednesday.

 

[Great Sachin]

where is so much earnings that Pakistan Forex is growing if it is not imf loan....these guys are fooling people

 

[BABA AGHORI]

where is so much earnings that Pakistan Forex is growing if it is not imf loan....these guys are fooling people

ye tufaan se pehle ki boonda bandi hai dost, It is just matter of time when $ would start flowing into the Arabian sea through Indus.. CPEC will bring in 30% of world trade through Pakistan

 

[RoadRunner401]

ye tufaan se pehle ki boonda bandi hai dost, It is just matter of time when $ would start flowing into the Arabian sea through Indus.. CPEC will bring in 30% of world trade through Pakistan

Dr, RoadRunner recommends.

 

[AZADPAKISTAN2009]

20 Billion is what 1-2 companies make in USA hmmmm

 

[Great Sachin]

20 Billion is what 1-2 companies make in USA hmmmm

My Indian company itself is $7 billion

 

[AZADPAKISTAN2009]

My Indian company itself is $7 billion

My personal account is 3 Billion

 

[Great Sachin]

My personal account is 3 Billion

Here is the link....
Global IT Services Company | HCL Technologies

$1bn in Net Profit, $5bn in Revenue and $15bn in Market Capitalization.

 

[Jazzbot]

Its astonishing when you come on a thread that has nothing to do with IK, there are several posts on this thread that have no mention of IK, but a dumbo comes up, starts his post with IK and ends at IK..

Such butthurt..

 

[notorious_eagle]

Lets use some basic Economics logic here. The only way a country can increase its FOREX reserves without borrowing is through remittances, foreign direct investment, portfolio investments and exports. While remittances have stayed stable; foreign direct investment, portfolio investment and exports have been at an all time low.

So if all these factors are at an all time low, and according to Mr. Dar these FOREX reserves are not the result of loans, than i wonder how are they at an all time high? Unless somehow Pakistan won lottery, the only logic that makes sense is that these dollars were borrowed by foreign institutions in the form of loans and bonds issuance.

I honestly have no idea who is Mr. Dar trying to fool here. This is the same as saying that the book value of a stock increased, the only caveat is the company took on more debt. Pakistan's economic problems cannot be solved unless structural reforms take place. In terms of reforming the economy, the Federal Government hasn't taken a single step.

 

[ajpirzada]

PIRZADA sahab, haven't seen you on for a long long time. hope all is well with you.

exports cannot be boosted until

1) electricity shortfall is addressed

2) proper export orientated policies are introduced (vietnam & bangladesh)

3) GOVERNMENT introduces relief and support packages for specific industries.


4) markets around the world pick up and fears of recession recede.

all is well. appreciate your asking. just busy with teaching and my phd

totally agree. the problem with support packages is that no govt can give support packages to all the industries across the economy. policymakers need to sit together and decide what exactly is our niche and in which direction/industries do they want our economy to grow. Without having made up our mind, any govt effort will be too scattered to bring real change.

 

[Gandhi follower]

Pakistan’s journey from $6b to over $15b

KARACHI:
After almost half its term at the helm, Pakistan Muslim League-Nawaz (PML-N) still continues to fend off allegations of election rigging and dismissive remarks over the country’s economic performance. While the government blows the trumpet of increasing foreign exchange reserves, critics tend to be indifferent over the progress as well, terming most of it as plagued with debt and borrowing.

Inflows and outflows of funds on a daily basis make it impossible to ascertain the exact share of borrowed money in foreign exchange reserves.

But a quick look at the timeline and accompanying notes reinforces the popular view that the increase in SBP-held foreign exchange reserves is mostly on the back of money that the government has either raised from global investors or borrowed from international financial institutions.

In addition to total disbursements amounting to $4.5 billion from the IMF since 2013, Pakistan has also raised at least $3.5 billion from the international bond market by floating Sukuks and Eurobonds.

In its many reports on the economy, the SBP has made it abundantly clear that it is not particularly fond of the government’s approach to shore up foreign exchange reserves on borrowed funds.

It should be noted that repayments to the Paris Club — following the debt rescheduling of December 2001 – are set to begin in 2016-17 whereas IMF repayments will start from 2017-18. It is against this backdrop that the SBP believes shifting financing away to non-debt creating inflows (i.e. foreign investments) is a must to strengthen the country’s debt servicing capacity in the future.

“A sustainable solution requires narrowing the FX gap with real earnings from exports and/or remittances, rationalisation of imports, and curbing smuggling,” the central bank advised the government in one of its recent reports.

DESIGN: NABEEL AHMED

June 2013

Nawaz Sharif-led PML-N promised an economic turnaround. But the external sector was in the doldrums already, with the country having exhausted about one-quarter of its liquid foreign exchange reserves in the past 12 months. That was mainly to pay the external deficit of $2 billion along with International Monetary Fund (IMF) repayments amounting to $2.5 billion.

The result was a massive drop in foreign exchange reserves held by the SBP: from $10.8 billion at the start of 2012-13, they stood at just above $6 billion by the end of the fiscal year.

The dire situation on the external-sector front left PML-N’s economic wizard Ishaq Dar with no choice but to seek help from the IMF – the lender of last resort.

Wooing the IMF made sense: once a country is under the IMF wings, it becomes easier for it to borrow funds from other international financial institutions (IFIs) to shore up its reserves.

Read: Foreign exchange: SBP’s reserves clock in at $15.202b

September 2013

Pakistan entered a three-year IMF loan programme of $6.64 billion in the first quarter of 2013-14. With the Washington-based lender pledging to bail the country out, chances of a balance of payment crisis were now minimal and a default on international payments was definitely out of the question.

But that didn’t mean the situation on the external sector was firmly under control. The IMF programme was “not frontloaded,” meaning Pakistan was going to receive funds from the IMF in equal quarterly tranches provided the country stuck to the reforms agenda set by the IMF.

There were no Coalition Support Fund (CSF) disbursements during the quarter while external debt servicing amounted to a massive $1.8 billion. According to the SBP, there was a net drawdown of $1.3 billion in July-September from SBP reserves, which was three times larger than the decline seen in the same quarter of the preceding fiscal year.

December 2013

Foreign exchange reserves were not that high to begin with and the situation became worse during November because Pakistan had to repay $725 million to the IMF. The SBP-held foreign exchange reserves touched their lowest point ($3 billion) since 2000-01 in the second quarter of 2013-14.

However, slight improvement took place towards the end of the quarter, as the country received the second tranche of $554 million from the IMF. Times ahead seemed promising now that the “lumpy repayments” to the IMF on account of a previous loan under the stand-by agreement were over. Going forward, repayments to the IMF would now be largely offset by disbursements from the IMF.

March 2014

The SBP could now state confidently that the pressure on the country’s foreign exchange reserves had finally “started to ease” post-December 2013, thanks in part to a “lumpy inflow” of $1.5 billion from an Arab country in March.

Pakistan’s foreign exchange reserves increased $1.8 billion in the third quarter of 2013-14 as opposed to a decline of $1.6 billion in the same three-month period of the preceding fiscal year.

June 2014

The three-month period ending on June 30, 2014 witnessed the largest expansion in the SBP-held foreign exchange reserves on a quarter-on-quarter basis in recent years.

Entering the global bond market after seven years, Pakistan sold sovereign bonds to generate $2 billion from international investors in April. Furthermore, the government sold the long-due 3G/4G spectrum licences, giving another boost of $517 million to reserve in the same month.

Pakistan received another $1 billion from the World Bank and $375 million as part of the CSF in May, bringing the total SBP-held reserves to $9.2 billion, up 73% from March 2014.

September 2014

The surge in SBP-held foreign exchange reserves for two consecutive quarters took a breather in the first three-month period of 2014-15.

Although the country received $735 million under the CSF in July-September, the retirement of $1.5 billion of external debt — coupled with delays in the fourth review of the IMF programme and political uncertainty owing to the sit-in by an opposition political party – resulted in a net decline of 4% in the SBP-held foreign exchange reserves.

Read: Foreign exchange: SBP’s reserves dip below $13.5b

December 2014

The government issued an Islamic bond (Sukuk) in the international market worth $1 billion during the quarter. While a sharp drop in global oil prices was reducing the country’s oil import bill, the resumption of disbursements from the IMF after its fifth review of the loan programme further strengthened the external sector.

March 2015

Although Pakistan received an inflow of $717 million in February under the CSF, a number of budgeted inflows did not materialise in January-March. These include $3 billion from ADB, IDA and China. Therefore, repayments exceeded the total disbursements in the three-month period ending on March.

June 2015

SBP-held foreign exchange reserves surged 17% over the quarter ending on June 30 due in part to the divestment of SBP’s stake in Habib Bank in April.

Reserves went up by almost 4% in the same month following the receipt of $538 million from multilateral, bilateral and other sources, including $498 million received from the IMF.

September 2015

Foreign exchange reserves held by the SBP increased $772 million in July because of the receipt of $756 million from the World Bank.

Despite official inflows of $418 million, including receipts of $337 million under the CSF, SBP-held reserves remained almost flat on a quarter-on-quarter basis.

October 2015

The second quarter of 2015-16 began with a massive inflow into the SBP-held foreign exchange reserves, which rose by $1.8 billion on October 2. The SBP received $505 million from the IMF, $500 million as proceeds of the Pakistan International Bonds, $376 million under the Coalition Support Fund (CSF) and $263 million as syndicate financing for the government of Pakistan.

Published in The Express Tribune, October 14th, 2015.

 

[AZADPAKISTAN2009]

Why don't we just put the whole country on Stock Exchange sell it all who buys most shares owns it

Going from 6 Billion to 20 Billion is wonderful indeed however real test would be next year
to see if Nawaz can take the numbers to 30 Billion mark

To this day I have never seen Pakistan ever have reserves more then 17-19 Billion yearly

Pretext for taking out the 5 Billion IMF loan was that Nawaz would fix the power grid?

However 3-4 Major projects are stalled if he can't finish these in time , Pakistan will be in Greece like situation as the ideas was that new energy will generate more $$$ for economy but without power , the extra $$$ will not come