]Pakistan foreign exchange reserves hit $17.1 billion record level

[Hyde]

Pakistan foreign exchange reserves hit $16.99 billion record level​

RECORDER REPORT
KARACHI (October 08 2010): The country's foreign exchange reserves rose to a historic level of $16.99 billion during last week because of rising foreign inflows. The State Bank of Pakistan on Thursday revealed that the country's total liquid forex reserves posted an increase of $204 million to $16.992 billion on week ended October 1, 2010 from $16.788 billion a week earlier.

Current level of reserves is historical, as earlier the country's liquid forex reserves stood at $16.788 billion on September 24, 2010. "The increase is due to the continuously rising inflow of remittances, as well as the inflow of a grant of $16.6 million from the United Kingdom to be spent on education in the Khyber-Pakhtunkhwa," said Syed Wasimuddin chief spokesman of SBP.

The major rise has been witnessed in the reserves held by the SBP, which crossed for the first time, a level of $13 billion. Reserves held by the SBP increased by $163.7 million to $13.156 billion during last week as compared to $12.992 billion a week earlier. Foreign exchange reserves held by banks posted an increase of $40.3 million during last week. With current surge, overall forex reserves held by banks rose to $3.82 billion as compared to $3.816 billion a week earlier.

 

[MYSTIC]

I am pleasantly surprised by the Pakistani economic progress despite the fact the country being in such a chaos. Really note worthy, and lessons to be learnt for other economies in political turmoil.

The only thing Pakistan should be worried about is their external debt and inflation. But as long as they play well with US and China, they shouldn't have any problem.

 

[TaimiKhan]

Not worth to be proud of or commend it about, majority of the FR consist of the loans taken from the international debt giving agencies.

The day, all of the FR are our own money, that is the day to be proud about.

 

[StingRoy]

If this is the case, then why was Pakistan appealing desperately for aid to help the flood affected? I would have thought that if it had an increasing foreign exchange reserve, then it could have easily spent some of it for the affected.

Nevertheless... this is a good trend to see some stability returning back to its economic system. This should be a well received news in its stock markets.

 

[VCheng]

Not worth to be proud of or commend it about, majority of the FR consist of the loans taken from the international debt giving agencies.

The day, all of the FR are our own money, that is the day to be proud about.

Well said.

Just plot out the exchange rate between the Pakistan Rupee and international currencies sine 1970, and one gets a good idea of the long term economic performance of the economy and balance of payments since that year.

 

[TopCat]

If this is the case, then why was Pakistan appealing desperately for aid to help the flood affected? I would have thought that if it had an increasing foreign exchange reserve, then it could have easily spent some of it for the affected.

Nevertheless... this is a good trend to see some stability returning back to its economic system. This should be a well received news in its stock markets.

Reserve is not government money. Its people's money. If they have to spend a penny out of it then they have to replace that with Rupee in central bank. They can always borrow though.

 

[MYSTIC]

If this is the case, then why was Pakistan appealing desperately for aid to help the flood affected? I would have thought that if it had an increasing foreign exchange reserve, then it could have easily spent some of it for the affected.

Nevertheless... this is a good trend to see some stability returning back to its economic system. This should be a well received news in its stock markets.

It would increase the money supply into the economy, leading to inflation and further lower the price of Paksitani Rupee against the dollar.

 

[MYSTIC]

Not worth to be proud of or commend it about, majority of the FR consist of the loans taken from the international debt giving agencies.

The day, all of the FR are our own money, that is the day to be proud about.

Every country has debt on their shoulder. India's debt is around 4 to 5 times that of Pakistan. The important thing is how this debt is utilized.

If it is used as capital investment it would have a multiplying effect on the GDP and end up generating more money than investment. But if the money is used for purposes like aid or military (where there is no return) it would be difficult to repay.

The entire world is running on debt. What is more important is how the debt is used.

 

[Hyde]

Forex reserves jump to record $17.10bn

Updated at: 1600 PST, Thursday, October 21, 2010
KARACHI: Pakistan's foreign exchange reserves rose to a record $17.10 billion in the week ending Oct. 15, up from $16.97 billion the previous week, the centralbank said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) rose to a record $13.26 billion from $13.15 billion, while those held by commercial banks also rose to $3.84 billion from $3.82 billion, said Syed Wasimuddin, chief spokesman of the SBP.

"The rise is due to increase in remittances from overseas Pakistanis and a narrowing trade deficit," said Wasimuddin.

Source: Forex reserves jump to record $17.10bn - GEO.tv

 

[naseebkhanniazi]

loan basid foreign exchange reserves are not the achivement if it come from trade or tax then it will good for pakistan but we know about all trade and tax .if we bost trade and produce qulity product then it cross and made new records

 

[Luftwaffe]

Well its true its all the loans based Forex, but its our Forex now. If west based tax system in many area were imposed in 1988 and on wards as part of system today our economy would have a different dimension.

Our economy is directly related to our resources I would time and again stress alone Gawadar can boost our economy multifold with FOREX can double and even triple in less then 7 years. Analyst says at its full potential it can bag $60 billion yearly i say even if its exaggerated at its full potential Gawadar can bag $25 Billion. Govt incompetency has destroyed Pakistan.

 

[TechLahore]

Pakistan's progress has continued even in turbulent times. The economy has continued to grow and fiscal management has most certainly improved. Can things be handled much better? Of course. Does Pakistan have the ability to get back to 8-10% growth? Sure. The IMF certainly thinks so! But in the interim, as we embark on the path of increased growth, let's please stop for a moment and celebrate our successes once in a while. We are just TOO darn negative.

Ann Patterson said something last week, which I completely agree with:

he said “Pakistanis are so hard on each other”. She talked about “the bitter edge against politicians”. She found the politics “corrosive”. She said that Pakistanis “never cut each other a break”.

Before It's News

Give each other and the country a break... if not always, at least once in a while. Just in the past couple of weeks, we've received good news on the economic front, we successfully stood our ground on the NATO incursions issue and the US is now discussing a further $2.5B military aid package (over and above KL), our Army beat 16 or 17 other countries and landed Gold at one of the world's most prestigious military competitions/exercises, we've turned down a huge ADB and World Bank loan ($3B) shocking observers and earning domestic praise, we've announced another 2GWs of power coming online by the end of the year and on and on. And this is just the past two weeks.

But if you were to read the papers, the perception you would get would be that the end of the world is nigh. I think our tendency to bash ourselves needs to be checked... if for nothing else, for our own mental well being.

 

[kugga]

Pakistan's progress has continued even in turbulent times. The economy has continued to grow and fiscal management has most certainly improved. Can things be handled much better? Of course. Does Pakistan have the ability to get back to 8-10% growth? Sure. The IMF certainly thinks so! But in the interim, as we embark on the path of increased growth, let's please stop for a moment and celebrate our successes once in a while. We are just TOO darn negative.

Ann Patterson said something last week, which I completely agree with:

he said “Pakistanis are so hard on each other”. She talked about “the bitter edge against politicians”. She found the politics “corrosive”. She said that Pakistanis “never cut each other a break”.

Before It's News

Give each other and the country a break... if not always, at least once in a while. Just in the past couple of weeks, we've received good news on the economic front, we successfully stood our ground on the NATO incursions issue and the US is now discussing a further $2.5B military aid package (over and above KL), our Army beat 16 or 17 other countries and landed Gold at one of the world's most prestigious military competitions/exercises, we've turned down a huge ADB and World Bank loan ($3B) shocking observers and earning domestic praise, we've announced another 2GWs of power coming online by the end of the year and on and on. And this is just the past two weeks.

But if you were to read the papers, the perception you would get would be that the end of the world is nigh. I think our tendency to bash ourselves needs to be checked... if for nothing else, for our own mental well being.

I totally agree with you... Instead of bashing ourselves we should work together to get our country back on track... Working hard and working by joining hands with each other is the only solution to our problems... Bashing will only lead us to more worse situation...