UAE to deposit $3bn in State Bank of Pakistan

[Meengla]

Much appreciated gestures by UAE and KSA. It's a shame that many PDF Pakistani members often needlessly insulted entire Arab populations because of some of their rulers' policies.
Anyway, so long as Pakistan is not dragged into ME wars...

 

[JohnWick]

@SunilM feeling so soory about you bro.

 

[ziaulislam]

You do realize all this money will be converted into a grant.

Lets hope for now its a loan with low interests
The CAD has shranked by half purely due to measures that should have been taken 2 years ago. Had we did that we would have maintained the 4-5% growth without going to IMF but to jack up a temp growth and finance an election the statebank head was removed and rupee was freely printed creating an artificial crisis and large fiscal deficit of around 10%

CAD is expected at 11b this year(vs 19last year and projected 24this year) anything around 2-3%(6-9b$) is easily managble without any issues.

The downside of this massive adjustment from 10% to 4.5% and sudden devaluation would be growth will be hit hard my guess around 4%

 

[JohnWick]

Lets hope for now its a loan with low interests
The CAD has shranked by half purely due to measures that should have been taken 2 years ago. Had we did that we would have maintained the 4-5% growth without going to IMF but to jack up a temp growth and finance an election the statebank head was removed and rupee was freely printed creating an artificial crisis and large fiscal deficit of around 10%

CAD is expected at 11b this year(vs 19last year and projected 24this year) anything around 2-3%(6-9b$) is easily managble without any issues.

The downside of this massive adjustment from 10% to 4.5% and sudden devaluation would be growth will be hit hard my guess around 4%

Its an other issue but I think it can decrease the dollar value.

 

[ziaulislam]

Haha. June 2019. You will be under an IMF programme.That is you destiny.

Probably right we need better rating to get WB AB and bonds funding ..goal would be to simply roll over the current 6b loan we have from IMF without them dictating anything

 

[Sully3]

Haha. June 2019. You will be under an IMF programme.That is you destiny.

less then $2 dollar a day indian you have been saying this since 2017.

slap after slap after slap after slap on your face. its quiet remarkable

 

[ziaulislam]

Its an other issue but I think it can decrease the dollar value.

Rupee should be kept at the right price...its calculated via economic data

We should not mess with rupee otherwise it will hurt Pakistan more in medium run..to keep rupee high you finance it via loans in The end you loose more value

 

[JohnWick]

less then $2 dollar a day indian you have been saying this since 2017.

slap after slap after slap after slap on your face. its quiet remarkable

He’s a mentally challenged troll.

 

[JohnWick]

Rupee should be kept at the right price...its calculated via economic data

We should not mess with rupee otherwise it will hurt Pakistan more in medium run..to keep rupee high you finance it via loans in The end you loose more value

I think it can support PKR.....

 

[ziaulislam]

I mean had rupee been kept at 115 in 2013 today we would have seen the rupee at around 130 with 15-20b less foreign loans and high growth momentum with more stability

 

[JohnWick]

I mean had rupee been kept at 115 in 2013 today we would have seen the rupee at around 130 with 15-20b less foreign loans and high growth momentum with more stability

Yeah PKR should be around 100.

 

[ziaulislam]

I think it can support PKR.....

Will only remove the panic buying and decrease in supply ..so if state bank calculate the value at 140 you should see shortage at that value now ..
I doubt it will improve the rupee might stablize it

RUPEE SHOULD BE LEFT ALONE AND FOCUS SHOULD BE ON ECONOMY TO IMPROVE THE RUPEE NOT VICE VERSA

 

[JohnWick]

Will only remove the panic buying and decrease in supply ..so if state bank calculate the value at 140 you should see shortage at that value now ..
I doubt it will improve the rupee might stablize it

RUPEE SHOULD BE LEFT ALONE AND FOCUS SHOULD BE ON ECONOMY TO IMPROVE THE RUPEE NOT VICE VERSA

When CPEC is going to start?

 

[ziaulislam]

Yeah PKR should be around 100.

Rupee is printed note ..if that note has no real value but kept artificially high everyone will come buy the rupee and remit the dollar(increased imports) ..

So basically you handing free money to foreigners

THEREFORE STATE BANK HAS TO BE INDEPENDT۔۔this isnt rocket science so why educated economist dont understand this

 

[Dawood Ibrahim]

The UAE's aid package will help resolve Pakistan's balance of payment crisis.
The UAE on Friday announced a Dh11 billion ($3 billion) financial bailout package to Pakistan that will help resolve Islamabad's balance of payment crisis.

In a statement, the Abu Dhabi Fund for Development (ADFD) said it will deposit Dh11 billion to the State Bank of Pakistan (SBP), the central bank, in coming days to enhance liquidity and monetary reserves of foreign currency at the apex bank.

It is second major breakthrough after Saudi Arabia announced a financial package worth $6 billion last month following the successful visit of Pakistan's Prime MinisterImran Khan, who warmly welcomed the decision of the UAE government.

"I want to thank the UAE government for supporting Pakistan so generously in our testing times," Khan posted on Twitter shortly after the announcement.

"This reflects our commitment and friendship that has remained steadfast over the years," he added.

Pakistan's Foreign Minister Shah Mahmood Qureshi also thanked the UAE leadership and paid huge tribute to His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, who is also expected to visit Pakistan in January 2019 to strengthen bilateral relationship between the two brotherly Islamic countries.

"We thank His Highness Sheikh Mohamed bin Zayed for his generous financial support of $3 billion. This is a manifestation of the close fraternal ties between Pakistan and UAE which have always stood the test of time," Mahmood tweeted.

The ADFD has financed eight development projects in Pakistan with a total value of Dh1.5 billion, including Dh931 million in grants. The funds covered projects in sectors such as energy, health, education and roads.

Muzzammil Aslam, former CEO of EFG-Hermes Pakistan, said the timely financial help of the UAE will help resolve economic problems of Pakistan in general and balance of payment crisis in particular.

"With $3 billion deposit commitment from the UAE has hedge Pakistan balance of payment crisis," Aslam told Khaleej Times from Karachi.

He said the Pakistan government led by Imran will now re-assess its request to enter a standby agreement programme with the International Monetary Fund in the days to come.

"The finance team led by Asad Umer is working on plan independent of IMF-suggested measures," he said.

- muzaffarrizvi@khaleejtimes.com



https://m.khaleejtimes.com/nation/abu-dhabi/uae-to-deposit-3-billion-in-state-bank-of-pakistan