IMF says forex reserves below adequate levels

[Che Guevara]

The International Monetary Fund (IMF) has warned that Pakistan’s foreign currency reserves have fallen below adequate levels and the country stands exposed to serious challenges while urging the government to undertake deep structural reforms.
In a statement issued on Thursday, the IMF said that the foreign currency reserves, held by the State Bank of Pakistan declined last month to below $10 billion, which is “below adequate levels.”
It further added that the reserves would deplete to just $7.4 billon by June 2013, sufficient to meet only two months import bill.
The statement was issued after the IMF Board concluded discussions and evaluation of the 2008 Stand-By Arrangement with Pakistan.
The statement comes at a time when the Finance Minister Dr Abdul Hafeez Shaikh is in Washington with his team to hold talks with the IMF on a future bailout programme.
The Fund said that Pakistan would miss all of its economic targets, inflation will return to double-digits again, economy will grow a mere 3.2% against a target of 4.5%, budget deficit will widen to 6.4% against a target of 4.7% and the unemployment rate will rise to 8.8%.

IMF says forex reserves below adequate levels – The Express Tribune

 

[karan.1970]

But BRecorder.com shows the Forex reserves of Pakistan at over $13 billion ....

 

[Che Guevara]

This is seriously not good for pakistan and they to have to return billions to IMF and World Bank in which no one is helping pakistan, not even all weather....

But BRecorder.com shows the Forex reserves of Pakistan at over $13 billion ....

I don't thing so that IMF is wrong....why they put wrong data....Pakistan is also showing different reserve value which it $13.58 billion last time

 

[karan.1970]

This is seriously not good for pakistan and they to have to return billions to IMF and World Bank in which no one is helping pakistan, not even all weather....



I don't thing so that IMF is wrong....why they put wrong data....Pakistan is also showing different reserve value which it $13.58 billion last time

Ok.. Got it.. Out of 13.8 billion, only about $9 billion is with the govt and rest is with commercial banks.. SO I guess IMF must be only looking at the reserves with the govt treasury...

 

[LOVETOALL]

Pakistan should concentrate on Economy also instead of only Army. Those day of cold war are over where you can say "US WILL SAVE US"...

 

[Fracker]

Why Pakistan even needs Forex Reserves, They should concentrate more on Gold Buying like India, China and Russia are after. Soon US economy will collapse by printing numerous currency notes.

Pakistan should concentrate on Economy also instead of only Army. Those day of cold war are over where you can say "US WILL SAVE US"...

US never could save us, n in 80s n easly 2000s Pakistan was in v good position, when they were thinking less about IMF, and their loans

 

[my2cents]

Why Pakistan even needs Forex Reserves, They should concentrate more on Gold Buying like India, China and Russia are after. Soon US economy will collapse by printing numerous currency notes.
US never could save us, n in 80s n easly 2000s Pakistan was in v good position, when they were thinking less about IMF, and their loans

It is Pakistan which is printing more money compared to USA. Your currency has fallen more than 50 % and your inflation is high because of oversupply. You need Forex reserves because of your need for oil and gold which you guy don't have and have to import from other countries.

 

[Fracker]

It is Pakistan which is printing more money compared to USA. Your currency has fallen more than 50 % and your inflation is high because of oversupply. You need Forex reserves because of your need for oil and gold which you guy don't have and have to import from other countries.

Deer, what this has anything to do with my arguments?

I said Pakistan should keep GOLD instead of Paper Money!! Does that make some sense?

 

[my2cents]

Deer, what this has anything to do with my arguments?

I said Pakistan should keep GOLD instead of Paper Money!! Does that make some sense?

In today's world it is not possible to carry gold around to do day to day transactions. You can peg your currency to your gold reserves... you will have the currency stability you are looking for.

 

[Fracker]

In today's world it is not possible to carry gold around to do day to day transactions. You can peg your currency to your gold reserves... you will have the currency stability you are looking for.

Then what I said?

Main b yehi keh raha hun, itnay billion dollar rakhnay ki bajay itnay ton gold rakho... ta k Pakistani Rupee stable rahay, jaisay India, China or russia karr rahay hain... dollar k pichay koi b cheez nai hey, jiss din purri dunya ne US se dollar k badlay apna paisa magna shurru kar diya tu ... US kangal ho jay ga ya break ho gaya.. or uss ki economy or state afairs batta rahay hain k aisa hi hoga..

Now I can't be more descriptive.....

 

[acid rain]

Then what I said?

Main b yehi keh raha hun, itnay billion dollar rakhnay ki bajay itnay ton gold rakho... ta k Pakistani Rupee stable rahay, jaisay India, China or russia karr rahay hain... dollar k pichay koi b cheez nai hey, jiss din purri dunya ne US se dollar k badlay apna paisa magna shurru kar diya tu ... US kangal ho jay ga ya break ho gaya.. or uss ki economy or state afairs batta rahay hain k aisa hi hoga..

Now I can't be more descriptive.....

How will you buy more Gold without the dollars?
Every stable country does that - they hedge their currency with the amount of Gold they own. The problem arises when a country starts printing more than then federal reserves.

 

[kam83]

Then what I said?

Main b yehi keh raha hun, itnay billion dollar rakhnay ki bajay itnay ton gold rakho... ta k Pakistani Rupee stable rahay, jaisay India, China or russia karr rahay hain... dollar k pichay koi b cheez nai hey, jiss din purri dunya ne US se dollar k badlay apna paisa magna shurru kar diya tu ... US kangal ho jay ga ya break ho gaya.. or uss ki economy or state afairs batta rahay hain k aisa hi hoga..

Now I can't be more descriptive.....

to prevent the above scenario ..US will continue to bomb other nations.......... and show their worthiness

bhai gunde se paise kaun mangega....

 

[BATMAN]

Forex reserves are low because, we pay heavy servicing on our debts, which were taken from international bodies to serve Indian transit and subsidise Indian industry.

At least we are trying to make Indians happy. IMF shall not ignore this aspect.

 

[acid rain]

Forex reserves are low because, we pay heavy servicing on our debts, which were taken from international bodies to serve Indian transit and subsidise Indian industry.

At least we are trying to make Indians happy. IMF shall not ignore this aspect.

???? what are you talking? and, Indian transit to where? and how are you subsidising our industry??

You run a high fiscal deficit, plus IMF has been bailing you out, Loans were most probably taken to pay energy bills and lately loans were taken to pay back loans. Where does India come into the picture.

 

[BATMAN]

???? what are you talking? and, Indian transit to where? and how are you subsidising our industry??

You run a high fiscal deficit, plus IMF has been bailing you out, Loans were most probably taken to pay energy bills and lately loans were taken to pay back loans. Where does India come into the picture.

What energy bills were paid with tens of billions of dollars? We do not import energy!


Now, I tell you how Indian industry is being subsidized by Zardari and quite opposition.
Which involves, free transportation and duty free import and sales.

If you go to Pakistani market, every Pakistani product is taxed multiple times, while a subsidized Indian product is available without sales tax.

To retailer indian product give more profit as it has no price structure.
Even, govt of Pakistan subsidize Indian products by actually forcing its ads. on cable tv and ptv.

Now the volume of aid is so huge if you go to departmental store, every shelf is full of Indian products.

Basically, you get free transport, service, fuel, handling.. all paid by govt. of Pakistan.

While the hypocrite politicians and IMF failed to see this open genocide of local industry.