High forex reserves not the outcome of IMF loans: Dar

[ice_man]

High forex reserves not the outcome of IMF loans: Dar
By APP
Published: October 14, 2015
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Finance Minister Ishaq Dar. PHOTO: PID

ISLAMABAD: Finance Minister Ishaq Dar has dismissed the perception that foreign exchange reserves of the country have gone up because of borrowing from the International Monetary Fund (IMF).

“The government is using most of the funding received from the IMF to pay back the debt taken from the lender during the tenure of previous government,” he said while speaking at a seminar on “Various circles of economic development and national cohesion” here on Tuesday.

It was jointly organised by the Embassy of Korea and the Institute for Policy Reforms. Dar also rejected the talk of heavy cost of borrowing, stressing that it was a mixed transaction and the average cost of total government borrowing for the past two years was 3.6%.

“We must have to show our presence in the international market in order to attract foreign direct investment,” he said.

The minister expressed the belief that foreign exchange reserves of over $20 billion would definitely instil confidence in foreign investors. He highlighted that the growth in the country’s economy reflected the improvement in macroeconomic indicators. “In FY14, Pakistan achieved 4.02% GDP growth – the highest in six years – and increased it to 4.24% in FY15, the quickest in seven years.”

The minister boasted that the fiscal deficit, which stood above 8% when the current government took over in mid-2013, was brought down to 5.3% in FY15.

He declared that the government would be able to overcome the energy crisis by early 2018 as 10,600 megawatts of electricity would be added to the national grid. At present, the electricity shortfall stands at about 5,000MW, but work on projects of 24,000MW is under way, some of which will start generating 10,600MW by the end of 2017 or early 2018.

Speaking about South Korea’s contribution to Pakistan’s economic development, Dar said the 2015-17 Economic Development Cooperation Fund Framework Agreement amounting to $500 million, which was signed earlier this month, would lead to initiation of different projects pertaining to hydroelectric power, road construction, agriculture, improvement in power distribution system, information technology and health care.

Published in The Express Tribune, October 14th, 2015.

 

[RoadRunner401]

This must be for Nuri nut and Mola jutt's consumption. Reality is this government, just like the previous ones, continue to dodge the real issues and avoid taking actions. Heavy borrowing plus lower fuel bills helping to prop up reserves, not exactly a winning recipe.

 

[Path-Finder]

ishaq dollar munshi the scoundrel

 

[RazorMC]

Rehnay do Dar sahab.

 

[ajpirzada]

indeed they are not bec of IMF alone. They are because of: Remittances IMF CSF WorldBank KSA EuroBond and Privatisation Receipts. All of the above has nothing to do with the real economy (i.e. exports and foreign investment)

 

[VCheng]

indeed they are not bec of IMF alone. They are because of: Remittances IMF CSF WorldBank KSA EuroBond and Privatisation Receipts. All of the above has nothing to do with the real economy (i.e. exports and foreign investment)

Also the drop in energy prices, reducing to a reduced import bill that helps reduce the adverse balance of payments.

 

[Hurter]

The forex reserves will be vanished, if another govt takes over in the next election.

 

[ajpirzada]

The forex reserves will be vanished, if another govt takes over in the next election.

they will vanish anyways... once we start paying back all this loan starting from 2017. The next govt will have no option but to go to IMF again... unless the current govt somehow manages to boost exports and foreign investment

 

[Viper0011.]

Reality is this government, just like the previous ones, continue to dodge the real issues and avoid taking actions. Heavy borrowing plus lower fuel bills helping to prop up reserves, not exactly a winning recipe.

Hey genius, outside of propaganda and "gossip" like your leader IK, do you have facts??? How about you pick three projects and cases where the funding came in and was sent to the savings account

If you have no educational and professional background in a topic, you should refrain from making statements like you are the Chief Economist of some place. Give facts, not your hurting rear in your post. Respond back with facts, which you people don't have 99% of the time. But if you do, I'll respond back and debate with you!!! 0 facts, 0 progress by IK and his followers, 100% Mouth consumption on every topic. Result for Pakistani people? 0 with high risk of civil war like Pashtuns vs. Punjabi's, this is the REAL case IK is working on!!!!

they will vanish anyways... once we start paying back all this loan starting from 2017. The next govt will have no option but to go to IMF again... unless the current govt somehow manages to boost exports and foreign investment

Tell your IK to leave the country alone so that the system can go in full steam and finish major projects to boost exports and bring in more FOREX. You guys don't tell that idiot to let go of the extremist based politics, don't tell him that the country needs politician stability but open your mouth and ask for everything else from the government.....????

The people have the same responsibility as the government. You reject violence and these violent sit-ins, etc, and maintain a healthy peaceful environment, the government can focus on doing things. Selfish people like IK are doing all these dramas, just to slow down or stop the government to make it look incompetent. No where else in the world do people abuse a country like this, so they can come into power themselves!!!! So politician stability is the first step towards a progressing Pakistan!!!

 

[RoadRunner401]

they will vanish anyways... once we start paying back all this loan starting from 2017. The next govt will have no option but to go to IMF again... unless the current govt somehow manages to boost exports and foreign investment

Boost in economy and foreign investment is hindered by few, the same one's who refuse to pay any kind tax. Only way out, for this or next government or the next, is tax people regardless of whom they are.

 

[Viper0011.]

High forex reserves not the outcome of IMF loans: Dar
ISLAMABAD: Finance Minister Ishaq Dar has dismissed the perception that foreign exchange reserves of the country have gone up because of borrowing from the International Monetary Fund (IMF).
.

I've explained this many times. No one gives a check to the gov't so it can keep the money in the savings account. Money goes directly to project accounts and gets disbursed down to the contractors by the IMF and the WF. Gone are days (since Mushy's time), when any foreign bank will give the gov't a check. They disburse the money themselves after measuring the progress. You make progress, you get paid, you don't make progress, they hold the installment.

Also, for fools who are commenting out of hate and propaganda, no commercial or other institute like the IMF or the WB or even a commercial bank give out loans to be kept in a savings account. It is actually illegal and it could jeopardize every future project that a country may have in the pipes. There are strict procedures the IMF and the WB follow.

I can't imagine there are so many people on here, who have 0 understanding of the real process but they comment on serious issues like this, as if they had a PHD in Economy!!!!

Verbal Warriors, just like IK!!! No work, no progress, no benefit to the nation, but higher risk of civil war in the near future. Pashtuns vs. Punjabis. 1971 again, ALL over!!!

 

[Foxtrot-Bravo]

Rehnr Deyo.

 

[ice_man]

indeed they are not bec of IMF alone. They are because of: Remittances IMF CSF WorldBank KSA EuroBond and Privatisation Receipts. All of the above has nothing to do with the real economy (i.e. exports and foreign investment)

PIRZADA sahab, haven't seen you on for a long long time. hope all is well with you.

exports cannot be boosted until

1) electricity shortfall is addressed

2) proper export orientated policies are introduced (vietnam & bangladesh)

3) GOVERNMENT introduces relief and support packages for specific industries.


4) markets around the world pick up and fears of recession recede.

 

[RoadRunner401]

Hey genius, outside of propaganda and "gossip" like your leader IK, do you have facts??? How about you pick three projects and cases where the funding came in and was sent to the savings account

If you have no educational and professional background in a topic, you should refrain from making statements like you are the Chief Economist of some place. Give facts, not your hurting rear in your post. Respond back with facts, which you people don't have 99% of the time. But if you do, I'll respond back and debate with you!!! 0 facts, 0 progress by IK and his followers, 100% Mouth consumption on every topic. Result for Pakistani people? 0 with high risk of civil war like Pashtuns vs. Punjabi's, this is the REAL case IK is working on!!!!



Tell your IK to leave the country alone so that the system can go in full steam and finish major projects to boost exports and bring in more FOREX. You guys don't tell that idiot to let go of the extremist based politics, don't tell him that the country needs politician stability but open your mouth and ask for everything else from the government.....????

The people have the same responsibility as the government. You reject violence and these violent sit-ins, etc, and maintain a healthy peaceful environment, the government can focus on doing things. Selfish people like IK are doing all these dramas, just to slow down or stop the government to make it look incompetent. No where else in the world do people abuse a country like this, so they can come into power themselves!!!! So politician stability is the first step towards a progressing Pakistan!!!

Insults and personal attacks, the only way PML-N and other Pakistani political party members respond to any posts they don't like.

Before most corrupt Pakistani politician's used to make the excuse, we couldn't do anything because the military took over, now military is being changed with IK. IK is stopping the GOP from putting into place solid frame work to turn the economy around.

IK is forcing the government to borrow, instead of fixing the tax collections and energy and security problems.

 

[Viper0011.]

Insults and personal attacks, the only way PML-N and other Pakistani political party members respond to any posts they don't like.

Before most corrupt Pakistani politician's used to make the excuse, we couldn't do anything because the military took over, now military is being changed with IK. IK is stopping the GOP from putting into place solid frame work to turn the economy around.

IK is forcing the government to borrow, instead of fixing the tax collections and energy and security problems.

No one's making anything personal. I stated facts. People who have no clue on economy and government lending, shouldn't post gossip on such serious topic. Go get educated first.

Second, there is no excuse, the governent has and is making plenty of progress, despite IK's efforts to stop the government, or take them down by violence and force. So he can come in and claim everything the current government has worked hard for.

This is how "Feeders" work, they try to take credit for other people's work and try to topple the government with lying, accusations and Hitler's tactics. The LEADERS on the other hand, stay low, keep making progress and get things done. But everything depends heavily on political stability that IK doesn't want to provide as he doesn't want these people to succeed (and Pakistan to succeed), as he doesn't have anything to show in comparison.

So its easy to talk these people to death and bring them down, vs. going in with a portfolio of projects done by NS's team, and IK has no actual work comparison.

Show us the little Europe the KPK has become due to IK's superior verbal warfae (LOL), where Mercedes now manufactures cars as its such a RICH state with SO much demand of high end cars due to people's living standard gone so high due to IK's government