Pakistan's foreign exchange reserves cross $15b mark

[Faiez]

oye jahilon, this is that $1.1 billion IMF loan gormint just got earlier due to which there's now $15 billion in reserves.

What sucks for the common man is that 10 billion of this 15 is in state bank. It means we don't get to even see a piece of the cake and the government can at any time play with exchange rates and show you that "tarakiyati kaam" has been done due to which dollar has become cheaper. This dollar will do nothing to improve economic conditions in Pakistan. As NS has done before, he will probably do it again. Artificially lower exchange rate to transfer his wealth abroad and then raise it up again.

A sensible government would let the exchange rate float freely. And stop taking IMF loans when it doesn't even have a plan on how to spend it.

Exchange rate and foreign reserves is not a measure of economic success.

Alternatively one could argue that privatization will lead to greater efficiency (with less being spent on subsidies) which in the long run will lead to greater exports. I think its high time these state run companies were privatized as the state is clearly incapable of running them. As long as the government increases the supply of energy this strategy should work.

The problem with privatization is corruption. Who gets to buy them and at what price? Will the auction be completely transparent? I would prefer if the government would instead liquidate all these state run businesses.

So the indications are positive,we only need Dar sahab to concentrate more now

Concentrate on getting more loans ?

Your target is very conservative. Pakistan can have much more than 25 BN USD.

Not sustainably.

Actually, if all goes per the economic plan, you should see about $ 30 billion by the end of 2017, and over $ 40 billion by 2019-2010, with over 4 million new jobs created at all levels.

After the above, if the political stability and peace remain in tact, every year post2020, there should be about $ 20 billion a year going into savings

One question, HOW ?

How much of these are loans?

A major chunk of it is loans.

And Pakistan is already in a lot of foreign debt.

 

[zaid butt]

good work keep it up

 

[The Great One]

Foreign reserves are liquid reserves.....remittances don't help in that case since even though they arrive in foreign currency, the people quickly withdraw that amount for their use.......so increases the demand for the rupee which helps in stabilizing the rupee........think of remittances as current account not savings account. Forex reserves by the government are those that the government can use without any restriction......the dollars i have sitting in my personal account don't count because they are my property not Government of Pakistan.

Hehehe
Typically clueless
When dollar remittance comes to any country (except USA), they are converted to the local currency because dollar isn't of much use in most places for local trading (except USA). These dollars are converted or simply put, exchanged by the banks for local currency which receive such money via wire transfer or if carried physically - its done in specified banks. I.E. the bank issues rupees in exchange for dollars. Similarly, exports are also received in dollars and converted to local currency. Both increase phoren exchange reserve of a country. Any dollars you have 'sitting in my personal account' aren't considered a part of remittance.

 

[Faiez]

Hehehe
Typically clueless
When dollar remittance comes to any country (except USA), they are converted to the local currency because dollar isn't of much use in most places for local trading (except USA). These dollars are converted or simply put, exchanged by the banks for local currency which receive such money via wire transfer or if carried physically - its done in specified banks. I.E. the bank issues rupees in exchange for dollars. Similarly, exports are also received in dollars and converted to local currency. Both increase phoren exchange reserve of a country. Any dollars you have 'sitting in my personal account' aren't considered a part of remittance.

remittances are the most liquid of "reserves". This guy telling you otherwise lol.

When remittances come, they go straight into the market and affect the exchange rates.

When an IMF loan gets approved, it goes to state bank and sits there while traders speculate over what the government might do with it.

the dollars i have sitting in my personal account don't count because they are my property not Government of Pakistan.

No, these dollars are counted in the foreign reserves. These are dollars which are with the banks. Your dollars in the bank are counted amongst those $5 billion which are with the banks. What doesn't count is what you have in your hands right now in cash which you brought in cash yourself physically, not through a bank transfer etc.

 

[AZADPAKISTAN2009]

Time to get that 5 Billion out for the SUBMARINE deal