Pakistan Foriegn Reserves Decreasing Fast

[AZ1]

Using artifical support for the PKR would violate IMF terms, so I think it is not likely, but Pakistan is known to renege on its commitments.



Going to IMF was Pakistan's decision, and it alone is responsible for its economic predicament.

https://twitter.com/x/status/1560633655365578753

 

[-blitzkrieg-]

This was in March.
View attachment 871856
From March to July(3.5 months) Reserves down $2.15B
This was in july
View attachment 871857

This one in August

View attachment 871858

From July 15th to August 12th - Hardly a month and we are down to $1.63B

Where money is going???

@ziaulislam @Jango
@Areesh @Imran Khan @Riz

This was in March.
View attachment 871856
From March to July(3.5 months) Reserves down $2.15B
This was in july
View attachment 871857

This one in August

View attachment 871858

From July 15th to August 12th - Hardly a month and we are down to $1.63B

Where money is going???

@ziaulislam @Jango
@Areesh @Imran Khan @Riz

Was around $23b in Feb.. dropped by 6 to $17. 39b in March.

 

[lastofthepatriots]

Bajranomics

 

[AZ1]

Was around $23b in Feb.. dropped by 6 to $17. 39b in March.

Exports were increasing or declining?

 

[Trango Towers]

Using artifical support for the PKR would violate IMF terms, so I think it is not likely, but Pakistan is known to renege on its commitments.



Going to IMF was Pakistan's decision, and it alone is responsible for its economic predicament.

ImF is an international mafia designed to Rob the poor nations

 

[VCheng]

ImF is an international mafia designed to Rob the poor nations

Then please don't go to IMF if it is so bad. Problem solved.

 

[Indos]

This was in March.
View attachment 871856
From March to July(3.5 months) Reserves down $2.15B
This was in july
View attachment 871857

This one in August

View attachment 871858

From July 15th to August 12th - Hardly a month and we are down to $1.63B

Where money is going???

@ziaulislam @Jango
@Areesh @Imran Khan @Riz

1.63 Billion USD reduce is something normal at current situation. Almost all countries have similar situation and much larger than Pakistan like India.

The trade deficit is getting bigger in many countries like India, Pakistan, Bangladesh etc due to higher energy and commodity prices that will cause some imported finished goods get more expensive as well which means there is bigger gap need to be filled. Even Bangladesh needs to get loan from IMF to solve their bigger than usual trade deficit.

Some of money is used for market intervention as well as I read the news in PDF about that. And no, market intervention doesnt mean the USD will be gone for nothing, usually it will be used to pay some of Pakistan debt or interest by using USD ( domestic loan is paid by exchanging some USD in the reserves through open market)

 

[Olympus81]

Cocomonics at work here.

Reduce imports then reduce exports then reduce reserves.

All well.

 

[AZ1]

1.63 Billion USD reduce is something normal at current situation. Almost all countries have similar situation and much larger than Pakistan like India.

The trade deficit is getting bigger in many countries like India, Pakistan, Bangladesh etc due to higher energy and commodity prices that will cause some imported finished goods get more expensive as well which means there is bigger gap need to be filled. Even Bangladesh needs to get loan from IMF to solve their bigger than usual trade deficit.

Some of money is used for market intervention as well as I read the news in PDF about that. And no, market intervention doesnt mean the USD will be gone for nothing, usually it will be used to pay some of Pakistan debt or interest by using USD ( domestic loan is paid by exchanging some USD in the reserves through open market)

Ok then it's fine if this is the case but why prices going high since oil price coming down?

 

[maithil]

Does this include reserves with private players as well ? Why is PKR strengthening when reserves are going down ?

 

[Indos]

Ok then it's fine if this is the case but why prices going high since oil price coming down?

Oil price coming down is just recent phenomenon, most of the time oil price is at 100 USD per barrel after Western nations sanction Russia oil trading. If you look on data, the reduce of your currency reserve is not happening suddenly.

Does this include reserves with private players as well ? Why is PKR strengthening when reserves are going down ?

PKR strenghtening is recent phenomenon as traders speculate The Fed (USA) tightening policy will not be as hawkish as it had been thought due to the combination of some new development which is recession in USA and inflation rate in USA is going down.

All developing countries currencies are also strenghtening after USA Q2 economic growth is released

 

[VCheng]

Why is PKR strengthening when reserves are going down ?

In anticipation of the release of IMF funds.

 

[AZ1]

 

[Communism]

~85% of Pakistan's GDP is household consumption.

The reserves will always be going down.

The entire reserves were from loans in the first place.

The only time Pakistan's reserves go up is due to taking more loans or getting free money.

The most telling was that Pakistan's current account was only in surplus when commodities were at rock bottom prices in 2020 and the economic activity drew to a standstill.

This means that Pakistan's economy is literally negatively productive.

 

[HttpError]

Exports were increasing or declining?

Exports were increasing they are at all time high, in-fact Pakistan has also started exporting petroleum products.

View attachment 871893

Good, it should go to 1,000 PKR.