Pakistan doesn't have enough foreign exchange reserves to pay debts: Moody's

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Pakistan doesn't have enough foreign exchange reserves to pay debts: Moody's

By
Web Desk
Thursday Jan 10, 2019

Reserves are now worth less two months of goods and services imports, says Moody's. Photo: File

Pakistan does not have enough foreign exchange reserves to pay its public and private external debt due over this year, a report by Moody’s said on Thursday.

“Foreign exchange reserves are low, and gross borrowing requirements are large in Pakistan and Sri Lanka, threatening the ability of these governments to refinance debt and fund deficits affordably,” Moody’s Investors Service said in its report.

The credit rating agency said the total public and private external debt due over the next year is larger than foreign exchange reserves.

Foreign exchange reserves are on lower side in Pakistan. The lower reserves threaten government to refinance debt, it noted.

Pakistan’s foreign reserves declined owing to persistent current account deficit. The reserves coverage of imports has also fallen, Moody’s further said.

“Reserves are now worth less two months of goods and services imports,” the credit agency noted

 

[Rusty]

Pakistan has enough money to pay everything, it's just sitting in swis accounts and in Avenfield homes.

 

[ARMalik]

It is Moody again, the fake agency that has a habit of spreading fake news. This is the same agency that was giving AAA ratings to the US mortgage bonds and the US economy specially in 2007 and 2008, and guess what? The US housing market crashed in 2008. The real estate prices crashed by more than 50%, and the stock exchange crashed by more than 40%. These agencies are vultures and dishonest, and working for the same corrupt system that is running this world. Pathetic!

 

[RIP Pak LAW]

Moody should rename itself to Modi

See how conveniently they mentioned only Pakistan and Sri Lanka because of China connection.

 

[khail007]

Then why stayed short of declaring Pakistan as bankrupt?

 

[Trango Towers]

It is Moody again, the fake agency that has a habit of spreading fake news. This is the same agency that was giving AAA ratings to the US mortgage bonds and the US economy specially in 2007 and 2008, and guess what? The US housing market crashed in 2008. The real estate prices crashed by more than 50%, and the stock exchange crashed by more than 40%. These agencies are vultures and dishonest, and working for the same corrupt system that is running this world. Pathetic!

Very well said

 

[Rank]

Here is the wealth baby....

 

[Trango Towers]

Indeed a massive 2nd undergroing economy. Sad but true

Here is the wealth baby....

View attachment 531838[/QUOTE

 

[Rank]

Here is the wealth baby....

View attachment 531838

2018 - 2019 harlay Davidson BOyz - Karachi... wanna see the beasts ? visit Lahore and Islamabad... Pakistan doesn't have any proper taxation system. My brother earned 3000$ a month in Pakistan.. he is just 25 years old and working as a freelancer with marketing agency in UK. He recently imported car worth 28,000 USD from Japan. He registered himself even though he is not working with any Pakistani company. He said how can I pay the tax there is no taxation system or law for me. People who are even willing to pay unable to pay the tax.

Massive reforms required but I see no reforms in taxation for next 10 years.. pehlay ye eek doosray ki maa behan tu eek karlain... PTI, PMLN, PPP...

Dons, Mafias, Landgrabbers, .... like in Wah Cantt, 888 Gang owned Rolls Royce Wrath, Mc Laren liberty, Ferrari Italia etc... they're holding massive property.. did the pay the tax the equal to their wealth? big NO this is just a example...

 

[maithil]

What does Moody's know ? Another western imperialist agency. PTI Economists are best in world.

 

[Darwin]

Why are ppl here getting hurt? Moody's is just repeating what pm niazi said indirectly by visiting so many countries for a few billions more.
At the moment Pakistan just has a fist full of dollars.

 

[313ghazi]

Who says we're going to pay the whole years worth of debt in January?

Scare mongering to reduce consumer confidence in Pakistan. The west wants to weaken our markets and force us into the hands of the IMF, trying to derail OBOR in Pakistan.

 

[AyanRay]

2018 - 2019 harlay Davidson BOyz - Karachi... wanna see the beasts ? visit Lahore and Islamabad... Pakistan doesn't have any proper taxation system. My brother earned 3000$ a month in Pakistan.. he is just 25 years old and working as a freelancer with marketing agency in UK. He recently imported car worth 28,000 USD from Japan. He registered himself even though he is not working with any Pakistani company. He said how can I pay the tax there is no taxation system or law for me. People who are even willing to pay unable to pay the tax.

Massive reforms required but I see no reforms in taxation for next 10 years.. pehlay ye eek doosray ki maa behan tu eek karlain... PTI, PMLN, PPP...

Dons, Mafias, Landgrabbers, .... like in Wah Cantt, 888 Gang owned Rolls Royce Wrath, Mc Laren liberty, Ferrari Italia etc... they're holding massive property.. did the pay the tax the equal to their wealth? big NO this is just a example...

So a country with pathetic levels of percapita electricity generation, steel consumption, cement consumption, literacy rate, a Country whose primary export product is textiles and raw materials is somehow filled with millionaires?

 

[pzfz]

2018 - 2019 harlay Davidson BOyz - Karachi... wanna see the beasts ? visit Lahore and Islamabad... Pakistan doesn't have any proper taxation system. My brother earned 3000$ a month in Pakistan.. he is just 25 years old and working as a freelancer with marketing agency in UK. He recently imported car worth 28,000 USD from Japan. He registered himself even though he is not working with any Pakistani company. He said how can I pay the tax there is no taxation system or law for me. People who are even willing to pay unable to pay the tax.

Massive reforms required but I see no reforms in taxation for next 10 years.. pehlay ye eek doosray ki maa behan tu eek karlain... PTI, PMLN, PPP...

Dons, Mafias, Landgrabbers, .... like in Wah Cantt, 888 Gang owned Rolls Royce Wrath, Mc Laren liberty, Ferrari Italia etc... they're holding massive property.. did the pay the tax the equal to their wealth? big NO this is just a example...

Anecdotes are not representative. Your brother is one in 200 million, 99% who live day to day. Please stop with this. It's no different than the BILLIONS supposedly stashed abroad. Good thing serious economists (at least PTI is providing a sound basis) do not take such ruminations seriously.

Pakistan has enough money to pay everything, it's just sitting in swis accounts and in Avenfield homes.

No, it doesn't. And even if it did, are Pakistanis really going to waste their time hopelessly hoping it comes back instead of working hard to provide a sound basis for the economy?

 

[nahtanbob]

It is Moody again, the fake agency that has a habit of spreading fake news. This is the same agency that was giving AAA ratings to the US mortgage bonds and the US economy specially in 2007 and 2008, and guess what? The US housing market crashed in 2008. The real estate prices crashed by more than 50%, and the stock exchange crashed by more than 40%. These agencies are vultures and dishonest, and working for the same corrupt system that is running this world. Pathetic!

Nope they never gave AAA ratings to the sub-prime bonds
Giving AAA rating to the bonds does not mean housing prices cannot fall. It has no bearing on the stock market.