Pakistan’s net international reserves stand at negative $4b

[randomradio]

CPEC is investment. Not a loan.

CPEC is much more special than investment or loan. It's a hostile takeover.

 

[Nilgiri]

actual its -90b as we have 97b obligations..
what kinda BS is this

They just talking about 1 year obligation (short term) window...not total (short + mid + long) obligation.

 

[Tshering22]

in 2017 in order to keep inflation low PML N blew up 10b dollars..where india adjusted it rupee by devlauting time and gain as needed we didnt result infront of us
second in order to get better taxation, he froze liquidity of exporters resulting in drop of exports

Holy c*ap! The man needs some economics lessons badly.

He blew $10 billion just for that?

Populism is a big pain in the a$$ for subcontinental politics. That's what keeps us from becoming developed, among other factors.

BTW what's IK's view on increasing heavy industries in Pakistan?

Is he looking at bringing in machine manufacturing?

 

[The Accountant]

https://profit.pakistantoday.com.pk...t-negative-4b-excluding-imf-debt-obligations/

ISLAMABAD: Figures released by the State Bank of Pakistan (SBP) on Wednesday have revealed that the country’s balance of payment crisis isn’t over since its net international reserves are negative $4 billion even after eliminating IMF debt obligations.

The figures released by the central bank show up to one-year obligations of the central bank surpass its gross official foreign currency reserves by around $4 billion, reports Express Tribune.

Last week, the gross official reserves of SBP were recorded at $8.2 billion against its short-term liabilities which stand around $12.2 billion.

SBP’s gross official reserves are mostly retained by contracting short-term loans from commercial banks and taking Chinese and Saudi deposits under currency swap arrangements.


Till September 2018, SBP had obtained $7.22 billion from commercial banks in the aegis of forward and currency swap arrangements.

Also, SBP needs to return $1.5 billion within a month, $3.2 billion within three months and a remainder of $2.6 billion in a years’ time, official data reveals.

Swap deals reached with commercial banks are in the range of 2.5% to 4% interest rates, as per banking sector sources.

Moreover, the central bank owes $1 billion to Saudi Arabia, $3 billion to China and $700 million to various lenders, said sources.

And approximately $453 million are repayable to the IMF in current FY19, which will directly be deducted from SBP’s reserves.

As per the IMF’s definition of Net International Reserves, SBP’s reserves would stand at -$9.7 billion after inclusion of its overall $6 billion obligations.

However, the IMF’s repayments are to be done over a period of coming five years, hence, all the amount cannot be eliminated against the short-term liabilities of SBP.

Stupid report ... He is including liablity that is due in next 12 months like there is no inwards remittances in next 12 month ...

 

[HariPrasad]

This means evenif the package promised by saudi is delivered, situation wont change. this is the time when china should come to the rescue its best friend Pakistan and bail them out with 100 bn USD package.

 

[cricketrulez]

Stupid report ... He is including liablity that is due in next 12 months like there is no inwards remittances in next 12 month ...

Isn't the problem that outflow is higher than inflow for many years? Is that going to change this year?

 

[The Accountant]

Isn't the problem that outflow is higher than inflow for many years? Is that going to change this year?

Yes but outflows are inclusive of debt repayments so you cant take a partual figure ... taking debt repayment outflows while ignoring other inflows and outflows ...

 

[cricketrulez]

Yes but outflows are inclusive of debt repayments so you cant take a partual figure ... taking debt repayment outflows while ignoring other inflows and outflows ...

Aren't your exports more than your imports dollarwise?