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

very good, this is the blood that can pump up Pakistan's economy.

overseas remittance can be higher if our government can facilitate overseas jobs recruiting such as hiring agencies, or provide proper training.

I heard the Philippines overseas workers remmit 30 billion $ a year, could learn some practice from them.

Sorry to dissapoint you, but you are over reacting from the figures shown here.
 
Sorry to dissapoint you, but you are over reacting from the figures shown here.

he is not sir 11bn$ send by overseas pakistanis in a year and its not a joke .USA give us 11 billion in 10 years and dancing on AID AID song.he is right many nations earn much much we should fix our problems speacialy money transfer should be free and on time and rates of transfer better no wonder we can reach 30 billion sir.still hawala and hondi is there otherwise 14 billion can be this year.
 
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.

You keep saying that the reason why bailout happened was to keep forex reserves stable so we don't lost remittance. But by IMF's and Pakistan government's own admission, the bailout was meant for balance of payment crisis. What's more important, online experts saying what the bailout was meant for or IMF and Pakistan government saying what the bailout was meant for?

P.S. Why are you asking me for sources, when you yourself are using a no-named journalist as a source?

Now how about this? Pakistan, IMF to begin crisis talks | Pakistan: Now or Never?
 
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.

See you come and argue with some thing you read of internet but you have no idea what is actually being talked about here.

So tell me.
What is forex.?
What is balance of payment?
What currency does international trade takes place in.
From where are payment for imports(eg oil) made from?


If someone give your country a million dollars where does that money go ?..not your neighborhood bank.
 
ares, I am know what I am talking about and I am not going to waste my time answering your questions because they're a diversion.

Tell me this. What was the reason we got those loans? Was it to stabilize our forex reserves?

If you want to say that loans first go into forex reserves, therefore all the IMF loans went into forex reserves, well we can talk about loans of all countries that way.
 
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.

Ares, correct me if I am wrong. According to my understanding, the stand by arrangement that Pakistan had with IMF, money could be spent on existing debt (to avoid a default situation). It could be used for importing essential items like oil and food. It may not be allocated for development purposes, but it could be spent for other loan repayments, like short and longterm loans. So, effectively it is being used for development purposes.
 
ares, I am know what I am talking about and I am not going to waste my time answering your questions because they're a diversion.

Tell me this. What was the reason we got those loans? Was it to stabilize our forex reserves?

If you want to say that loans first go into forex reserves, therefore all the IMF loans went into forex reserves, well we can talk about loans of all countries that way.

But other countries are not in the same situation as Pakistan and their loan conditions are different.

Pakistan is in such a precarious situation with respect to its reserves, it is keeping a tight lid with respect to giving out details. but the devil is in the details. If it was open and transparent then we would not be speculating on this forum. Some member on this forum are ready to celebrate on this news, but do not know any better. Pakistan's economy is getting better but is still not out of woods yet.
 
You keep saying that the reason why bailout happened was to keep forex reserves stable so we don't lost remittance. But by IMF's and Pakistan government's own admission, the bailout was meant for balance of payment crisis. What's more important, online experts saying what the bailout was meant for or IMF and Pakistan government saying what the bailout was meant for?

P.S. Why are you asking me for sources, when you yourself are using a no-named journalist as a source?

Now how about this? Pakistan, IMF to begin crisis talks | Pakistan: Now or Never?

The blog is dated 2008.
I was quoting you own figures from your posts earlier buddy. Reread your posts. If you have contradicting figures now please share. I'll be happy to take back my comments. Until then, my argument stands.
 
ares, I am know what I am talking about and I am not going to waste my time answering your questions because they're a diversion.

Tell me this. What was the reason we got those loans? Was it to stabilize our forex reserves?

If you want to say that loans first go into forex reserves, therefore all the IMF loans went into forex reserves, well we can talk about loans of all countries that way.

Yes you have to look at all IMF loans that way.Here is a description of what IMF does.
The primary mission of the IMF is to provide financial assistance to countries that experience serious financial and economic difficulties using funds deposited with the IMF from the institution’s 187 member countries. Member states with balance of payments problems, which often arise from these difficulties, may request loans to help fill gaps between what countries earn and/or are able to borrow from other official lenders and what countries must spend to operate, including to cover the cost of importing basic goods and services. In return, countries are usually required to launch certain reforms, which have often been dubbed the Washington Consensus. These reforms are thought to be beneficial to countries with fixed exchange rate policies that may engage in fiscal, monetary, and political practices that may lead to the crisis itself. For example, nations with severe budget deficits, rampant inflation, strict price controls, or significantly overvalued or undervalued currencies run the risk of facing balance-of-payment crises. Thus, the structural adjustment programs are at least ostensibly intended to ensure that the IMF is actually helping to prevent financial crises rather than merely funding financial recklessness.
 
ares, I am know what I am talking about and I am not going to waste my time answering your questions because they're a diversion.

Tell me this. What was the reason we got those loans? Was it to stabilize our forex reserves?

If you want to say that loans first go into forex reserves, therefore all the IMF loans went into forex reserves, well we can talk about loans of all countries that way.

Ok now I am going to lay it down for you in layman's terms so that you can understand

Forex stands for foreign exchange.
Any foreign exchange coming into your country whether from trade or aid or IMF becomes a part of country's forex.
Now this foreign exchange is in-turn used by the country to pay for the imports.

Now if net forex coming in starts exceeding net forex going out..the country starts building its forex reserves(to act as an buffer in crunch situations.)

Now if your forex reserves start reducing that means net forex going out exceeds, net forex coming in ie Balance of payment crisis.

So if some institution(eg IMF) wants to avert a balance of payment crisis or a step further a sovereign default..it will pump in foreign exchange into your forex reserves(from where you pay your import bill) ... Comprehende!!??
 
Ares, correct me if I am wrong. According to my understanding, the stand by arrangement that Pakistan had with IMF, money could be spent on existing debt (to avoid a default situation). It could be used for importing essential items like oil and food. It may not be allocated for development purposes, but it could be spent for other loan repayments, like short and longterm loans. So, effectively it is being used for development purposes.

Yes the foreign exchange can be uses to avert sovereign default..but not development purposes neither can it be used for loan payments.

The foreign exchange given by IMF become the part of country's foreign reserve from where the import bill for the country is paid..so in order to keep the country from defaulting(ie resulting in capital flight from the country) ..foreign exchange is pumped into the country.
 
The blog is dated 2008.
I was quoting you own figures from your posts earlier buddy. Reread your posts. If you have contradicting figures now please share. I'll be happy to take back my comments. Until then, my argument stands.

The article is from 2008 because the loan we got was from 2008. And it's on reuters.
 
Yes you have to look at all IMF loans that way.Here is a description of what IMF does.
The primary mission of the IMF is to provide financial assistance to countries that experience serious financial and economic difficulties using funds deposited with the IMF from the institution’s 187 member countries. Member states with balance of payments problems, which often arise from these difficulties, may request loans to help fill gaps between what countries earn and/or are able to borrow from other official lenders and what countries must spend to operate, including to cover the cost of importing basic goods and services. In return, countries are usually required to launch certain reforms, which have often been dubbed the Washington Consensus. These reforms are thought to be beneficial to countries with fixed exchange rate policies that may engage in fiscal, monetary, and political practices that may lead to the crisis itself. For example, nations with severe budget deficits, rampant inflation, strict price controls, or significantly overvalued or undervalued currencies run the risk of facing balance-of-payment crises. Thus, the structural adjustment programs are at least ostensibly intended to ensure that the IMF is actually helping to prevent financial crises rather than merely funding financial recklessness.

So you accept that the IMF loans were for balance of payment crisis. The IMF loans were first loaded onto forex reserves, but then later on used where they need to be used. So why do you keep saying that the loans make up 45% of the reserves, then?
 
Ok now I am going to lay it down for you in layman's terms so that you can understand

Forex stands for foreign exchange.
Any foreign exchange coming into your country whether from trade or aid or IMF becomes a part of country's forex.
Now this foreign exchange is in-turn used by the country to pay for the imports.

Now if net forex coming in starts exceeding net forex going out..the country starts building its forex reserves(to act as an buffer in crunch situations.)

Now if your forex reserves start reducing that means net forex going out exceeds, net forex coming in ie Balance of payment crisis.

So if some institution(eg IMF) wants to avert a balance of payment crisis or a step further a sovereign default..it will pump in foreign exchange into your forex reserves(from where you pay your import bill) ... Comprehende!!??

Einstein, yes I already know that the loans were first put into the forex reserves, and already know what each of the what you're explaining means. BUT THE LOANS WERE LATER ON TAKEN FROM FOREX RESERVES AND USED WHERE THEY NEED TO BE USED. Comprehende? That's what I have been trying to say all along, you diversionary troll. So pretty much all of our reserves
 
See this is what happens when you do not know what you are talking about you end up contradicting yourself and making a fool out of yourself.


Here you say

The question is how much of it. The primary reason why we got IMF loans for reduce budget deficit and pay off previous loans. Most likely only a small chunk of those loans went to forex reserve.

Ah here comes self-proclaimed expert. So tell me then, if it went into forex reserves, where did we get the money for which these loans were mainly meant for? i.e. paying off previous debt or taking care of budget deficit, and even of that it was primarily for paying off previous debt.

Oh wait, we have to pay our debt in USD. So much for the self-proclaimed expert.


IMF providing money for covering country's budget deficit ..what a joke!!

Then
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.

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.


And Now

Einstein, yes I already know that the loans were first put into the forex reserves, and already know what each of the what you're explaining means. BUT THE LOANS WERE LATER ON TAKEN FROM FOREX RESERVES AND USED WHERE THEY NEED TO BE USED. Comprehende? That's what I have been trying to say all along, you diversionary troll. So pretty much all of our reserves

So basically your are saying is IMF provided you with money..which you put into your forex reserve and then took money out from the forex reserve and used it for covering budget deficit(LOL) and previous loans.

Fine I will humor you and lets assume what you are saying is correct..so that would mean your own forex reserve must have become zero for you to tap into IMF money and start paying loans form that..hunh..so can you tell me the date on which own forex reserve went to zero and perhaps a link too.

And offcourse then there is this big assumption you make since IMF money was spent on loan payments and deficit financing it will no longer be a part of forex reserve!!

Why is that?..when you pay back money to IMF..will you pay back in PKR or USD? and where will that money come from your neighborhood ATM or the forex reseve??
 

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