Pakistan’s foreign exchange reserves swell to $ 18.2 billion

[Rahil khan]

Nice.... How much time to make it to 30 Billion Dollars?

Till end of 2017, it would cross 30 billion dollars.

 

[xyxmt]

So Zadari Leaves the Country
And Next day Forex reserves hit record high
Maybe you guys should have kicked him out in 2013 itself, so the Crysis could have been avoided
On a serious note,
PIA and Paksteel cannot be considered Family jewels,
They are more like leaches sucking on the Family jewels
They should be divested even if you get just 100 million USD out of them

PPP told its Jayaleys that PIA and Steel mills are their family jewels, employment in one of those jewels is how those supporters are rewarded for putting their life on line and getting out on the street in 45 degrees.

 

[Arsalan]

That is because Euro has been weakening, putting a strain on the earnings and competitiveness of Pakistani exporters.

I am a textile engineer and textile exporter by profession. The sales have decreased, not only in value but ALSO in volume.

Reaching the 18 billion mark for foreign reserves is an achievement indeed considering that this is the highest we have ever got. We cannot compare it to other countries and feel proud but the increasing reserves things as being in right track. I hope government can clarify how much of these reserves are direct loans because those wont count for much (even including the loans the reserves are at highest, it is not that previous governments did not took loans, all of them were a master of that so even with the load te reserves must have been at the highest mark that is good)

 

[Al-Taïr]

And why are we focusing on foreign paper instead of gold?
And is it wise to risk it all on american paper?

& Just when PIA started making some money you are giving it away.. isnt semi privatizing a better option?

 

[Stephen Cohen]

I am a textile engineer and textile exporter by profession. The sales have decreased, not only in value but ALSO in volume.

Reaching the 18 billion mark for foreign reserves is an achievement indeed considering that this is the highest we have ever got. We cannot compare it to other countries and feel proud but the increasing reserves things as being in right track. I hope government can clarify how much of these reserves are direct loans because those wont count for much (even including the loans the reserves are at highest, it is not that previous governments did not took loans, all of them were a master of that so even with the load te reserves must have been at the highest mark that is good)

ALL foreign loans have to repaid

Starting FY 17 the outflows will increase again

These reserves have been built up by loans and selling Government equity in
Government owned companies ;

Real reserves are those that come from investment

 

[Archie]

If Oil Price remain around 60 USD, then their is a chance that your reserves may hit 25 Billion USD by 2017
Even in India's case, our Forex reserves only jumped to 350 Billion USD, after hovering between 290-315 Billion for last 4 years, only because of fall in crude.

 

[[Bregs]]

Oil prices are expected to rise after 2 years till then the emerging developing nations have time to formulate there economies

 

[Shamain]

Oil prices are expected to rise after 2 years till then the emerging developing nations have time to formulate there economies

Question is, will they?

I am a textile engineer and textile exporter by profession. The sales have decreased, not only in value but ALSO in volume.

Reaching the 18 billion mark for foreign reserves is an achievement indeed considering that this is the highest we have ever got. We cannot compare it to other countries and feel proud but the increasing reserves things as being in right track. I hope government can clarify how much of these reserves are direct loans because those wont count for much (even including the loans the reserves are at highest, it is not that previous governments did not took loans, all of them were a master of that so even with the load te reserves must have been at the highest mark that is good)

Are we losing sales to bangladesh?

 

[[Bregs]]

Question is, will they?


Are we losing sales to bangladesh?

political leadership in sub continent has been wavering but its better late then never

 

[Matrixx]

till Pakistan dont solve its circular debt issue... all these looks very disguising

 

[SBD-3]

I am a textile engineer and textile exporter by profession. The sales have decreased, not only in value but ALSO in volume.

That is because Euro has been weakening, putting a strain on the earnings and competitiveness of Pakistani exporters.

I think anyone with economic background would be able to understand that what are the consequences of erosion of competitiveness of export oriented industry.

and there is also lack of import planning (e.g looking to import EXPENSIVE power instead of home generation, looking for LNG instead of coal)

LNG is a multipurpose fuel
1-It will be used as a replacement of CNG
2-It will be used as an input in fertilizer generation
3-It will be used for power generation.
4-It will be used as a fuel by glass industry.
4-It would ultimately be used for household consumption.
Pakistan's domestic natural gas reserves are severely constrained at the moment.

till Pakistan dont solve its circular debt issue... all these looks very disguising

Circular debt can be resolved to a greater if there is a political will. Cut the electricity to feeders with low payment and high losses like K-Electric does in Karachi. But if government does so next day we will start hearing statements,"Hamary subay kay sath ziadti ho rahi hay" etc

 

[shah1398]

FE Reserves swelling but at what cost? They did swell to record high level in PPP govt but drained to single digit in first few months of NS Govt.

 

[ziaulislam]

I think anyone with economic background would be able to understand that what are the consequences of erosion of competitiveness of export oriented industry.


LNG is a multipurpose fuel
1-It will be used as a replacement of CNG
2-It will be used as an input in fertilizer generation
3-It will be used for power generation.
4-It will be used as a fuel by glass industry.
4-It would ultimately be used for household consumption.
Pakistan's domestic natural gas reserves are severely constrained at the moment.


Circular debt can be resolved to a greater if there is a political will. Cut the electricity to feeders with low payment and high losses like K-Electric does in Karachi. But if government does so next day we will start hearing statements,"Hamary subay kay sath ziadti ho rahi hay" etc

its a multipurpose fuel but i am strictly talking about govt plan to build 4000mw LNG dependent plants rather than going for imported coal projects. LNG is 50% expensive than coal and merely 10% cheaper than furnace oil

 

[SBD-3]

its a multipurpose fuel but i am strictly talking about govt plan to build 4000mw LNG dependent plants rather than going for imported coal projects. LNG is 50% expensive than coal and merely 10% cheaper than furnace oil

How did you workout the equivalence?
AFAIK today the following prices are available in spot value

For strictly power generation even if we convert the Spot Barrel price into MMBTUs, 5.56 MMBTUs of Natural gas would produce energy equivalent to a barrel of oil. The equivalence price turns out to be 15.40$. Similarly coal is trading at around 41$ today...

 

[ziaulislam]

How did you workout the equivalence?
AFAIK today the following prices are available in spot value
View attachment 232724
For strictly power generation even if we convert the Spot Barrel price into MMBTUs, 5.56 MMBTUs of Natural gas would produce energy equivalent to a barrel of oil. The equivalence price turns out to be 15.40$. Similarly coal is trading at around 41$ today...

i am simply quoting prices that matter..i.e prices offered by NEPRA.
NEPRA offers 7.8 cents for coal vs around 11.2 cents for LNG

(not final, preliminary at rate of 12 rs LNG which was the price of LNG after all cost of imports and 15% taxes, though later on govt revised the price to around 13rs, so NEPRA is working out the newer price).

.....::::NEPRA::::....
remember there other issues rather than mere spot prices in pricing LNG, prices varies at different areas its not simple, i also dont know whom prices are you quoting here. also return rates on power plants matters

HSD price is around 17 rs for newer plants (not old DESCO which is around 25rs)