Pakistan's forex reserves hit all-time high of $18.25 billion

[SMC]

First, you want to ready it carefully. It's saying 55% is Pakistan's, therefore 45% is loans.

Now as for that 45% is concerned, even there he's making a logical fallacy there. He's saying that we have got 8 billion so far in loans, and we have 17.5 billion billion in forex reserves (8 billion is roughly 45% of 17.5 billion - so that's how he's getting the 45% figure), so therefore we have 9.5 billion in real forex reserves. That's absolute stupidity, because as I said, at best, only a fraction of the loan went to foreign reserve. He's using the oversimplistic argument that all of it went there - his logic is out of order. The government doesn't show where the forex reserve comes from.

The IMF loan was primarily meant for debt repayment, yes. Not all of it, but primarily. That's why I am saying that only a small fraction perhaps 10-20% would go to forex reserves. So of the total forex reserves, perhaps 5-10% would come from loans.

 

[my2cents]

I've already said about a dozen times or so now. Primarly, they do not go toward forex reserves. Maybe a small portion or so, yes.

Let me ask you first, where do you park your funds when the loans get sanctioned by IMF?? In the Central bank right?? So, if you subtract that amount from the forex reserves you get your answer?? Ka-peesh

 

[SMC]

So where do other countries park their loans when they get them? So we should be subtracting their loans from forex reserves to get the answer.

 

[foxbat]

So where do other countries park their loans when they get them? So we should be subtracting their loans from forex reserves to get the answer.

Forex reserves to help stabilise prices in Ramazan

Pakistan’s forex reserves stood at $17.5 billion in FY11, up 9 percent Year-on-Year (YoY), primarily amid massive rise in country’s exports (23 percent YoY), thanks to record cotton and its allied products’ prices, and a solid 25 percent jump in the remittances flow to over $11bn (11M figures annualised). Resultantly, local currency has been quite on a stable track throughout the year with only 2 percent depreciation against the dollar to 85.58.

The other non-fundamental reason for forex reserves to scale up to this level were receipts of Coalition Support Fund from the US of $633 million in January 2011.

As a result, the current account of the country turned into surplus after a span of seven years of consistently being in the deficit, the report said.

 

[Vibs]

So where do other countries park their loans when they get them? So we should be subtracting their loans from forex reserves to get the answer.

I'll break down things to basic levels here to avoid any confusion. Of the total Reserves 45% is loans and 55% is Pakistani money. This might indicate a balance of payment in favour of Pakistan in a pure trade situation. But situation here is different. A large part of the Pakistani money is remittances from Non-Resident Pakistanis. They continue to do so out of a combination of patriotism and relative stability of the currency.
If all the aid stops and the IMF and Wold bank donot extend credit, there is a risk of forex crisis. The 2 solutions to this are selling off gold reserves or a devaluation of currency (As India had to do in 1991). But this would spook non residents from remitting money back home (as happened with Zimbabwe and Somalia). That leaves a bailout with China or a rapid restructuring of the economy and higher exports.
Pakistan may be able to do it given it's population is better equipped and educated than Zimbabwe or Somalia but still a tight position to be in.

 

[ares]

First, you want to ready it carefully. It's saying 55% is Pakistan's, therefore 45% is loans.

Now as for that 45% is concerned, even there he's making a logical fallacy there. He's saying that we have got 8 billion so far in loans, and we have 17.5 billion billion in forex reserves (8 billion is roughly 45% of 17.5 billion - so that's how he's getting the 45% figure), so therefore we have 9.5 billion in real forex reserves. That's absolute stupidity, because as I said, at best, only a fraction of the loan went to foreign reserve. He's using the oversimplistic argument that all of it went there - his logic is out of order. The government doesn't show where the forex reserve comes from.

The IMF loan was primarily meant for debt repayment, yes. Not all of it, but primarily. That's why I am saying that only a small fraction perhaps 10-20% would go to forex reserves. So of the total forex reserves, perhaps 5-10% would come from loans.

What the hell are you talking about..you did not get IMF loan to build bridges, dams or roads..you entered into a SBA with IMF(in 2008) to stabilize the dwindling Forex reserves..so that investment does not fly out of your country.

All of IMF installments went into building your forex reserves.

 

[ares]

So where do other countries park their loans when they get them? So we should be subtracting their loans from forex reserves to get the answer.

Read the charter for IMF..It is not WB, ADB or IDB..it is IMF...It only gives money for one purpose ..ie stabilizing the economy and not for development purposes..there is only place this money sits and can not be spent.

 

[Anti_Zionist]

Great news for Pakistan!!!!!

 

[SMC]

Read the charter for IMF..It is not WB, ADB or IDB..it is IMF...It only gives money for one purpose ..ie stabilizing the economy and not for development purposes..there is only place this money sits and can not be spent.

What the hell are you talking about..you did not get IMF loan to build bridges, dams or roads..you entered into a SBA with IMF(in 2008) to stabilize the dwindling Forex reserves..so that investment does not fly out of your country.

All of IMF installments went into building your forex reserves.

You have no idea what you're talking about ares. Like always. The loans were meant for balance of payment crisis that occured in 2008. Yes it went to stabilizing the economy. No it didn't go to forex reserves, however.

 

[mirage 5000]

SEND SEND SEND MORE AND MORE . wow keep it up .overseas pakistanis on fire since banks fix the problems or money transfer .

 

[SMC]

I'll break down things to basic levels here to avoid any confusion. Of the total Reserves 45% is loans and 55% is Pakistani money. This might indicate a balance of payment in favour of Pakistan in a pure trade situation. But situation here is different. A large part of the Pakistani money is remittances from Non-Resident Pakistanis. They continue to do so out of a combination of patriotism and relative stability of the currency.
If all the aid stops and the IMF and Wold bank donot extend credit, there is a risk of forex crisis. The 2 solutions to this are selling off gold reserves or a devaluation of currency (As India had to do in 1991). But this would spook non residents from remitting money back home (as happened with Zimbabwe and Somalia). That leaves a bailout with China or a rapid restructuring of the economy and higher exports.
Pakistan may be able to do it given it's population is better equipped and educated than Zimbabwe or Somalia but still a tight position to be in.

Please, where are you getting your figures from that 45% is built from loans? Government doesn't release such figures, and the journalist is using childish arguments such as all the loans went to forex reserves.

The loan was PRIMARILY MEANT FOR BALANCE OF PAYMENT CRISIS.

 

[mirage 5000]

Please, where are you getting your figures from that 45% is built from loans? Government doesn't release such figures, and the journalist is using childish arguments such as all the loans went to forex reserves.

he is indian sir he will never use simple words of cong but turn it a war .why? DNA problem hahahahahaha

 

[lem34]

Pakistan's forex reserves totaled $17.47 b in previous week $17.95 b during week ending March 26.

KARACHI: Pakistan’s foreign exchange reserves reached an all-time high of $18.25 billion in the week ending July 2, following inflows of more than $400 million that included loans from multilateral donors, a central bank official said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) rose to $14.79 billion from $14.02 billion a week ago, and those held by commercial banks edged to $3.46 billion up from $3.45 billion, said SBP chief spokesman Syed Wasimuddin.

“During the week we received inflows of $411 million, which pushed the reserves to an all-time high level,” he said.

“These inflows included a loan of $191.9 million from the World Bank, and another loan of $196.8 million from the Asian Development Bank.”
Pakistan’s foreign exchange reserves totaled $17.47 billion in the previous week, reaching a previous high of $17.95 billion during the week ending March 26.

Higher export proceeds and a record inflow of remittances have helped Pakistan’s forex reserves grow steadily.

Remittances from overseas Pakistanis topped $10 billion for the first time during the 2010/11 fiscal year, hitting $10.1 billion in the first 11 months, an increase of 25.20 percent compared with the same period last year, according to data from the SBP.

Foreign exchange reserves were boosted in January by more than $633 million when the United States provided funds for military and logistical support for Pakistan’s campaign against a Taliban insurgency.

In May 2010, Pakistan received $1.13 billion in the fifth tranche of an $11 billion International Monetary Fund (IMF) bailout programme.

Pakistan’s forex reserves hit all-time high of $18.25 b – The Express Tribune

Just make sure that theif zardari and his mate gillani find out or get their hands on it

 

[mirage 5000]

Just make sure that theif zardari and his mate gillani find out or get their hands on it

thats the biggest threat to our forex reserves lolz.

 

[Vibs]

Please, where are you getting your figures from that 45% is built from loans? Government doesn't release such figures, and the journalist is using childish arguments such as all the loans went to forex reserves.

The loan was PRIMARILY MEANT FOR BALANCE OF PAYMENT CRISIS.

Sheesh...reread the entire thread your own posts and the replies to it. If you don't want to do it read the case studies of Zimbabwe, Sudan or the thread of the Indian bailout in 1991. I'm not basing you or your country. Pointing out a few facts. If my figures are wrong, can you get me a source for the right ones?
P.S.:Every govt. has to release data about their loan structuring.