Pakistan's foreign reserves rise to $15.9bn: SBP

[AZ1]

The country's total liquid foreign reserves stood at $15.898 billion on September 13, a press release issued by the State Bank of Pakistan on Thursday said.

The central bank's reserves witnessed an increase of $138 million to reach $8.6bn during the week ending September 13, the handout added.

According to a breakup of the foreign reserves position provided by SBP:

1. Foreign reserves held by the State Bank of Pakistan — $8.6bn
2. Net foreign reserves held by commercial banks — $7.3bn
3. Total liquid foreign reserves — $15.9bn

The central bank also reported that the dollar shed 2 paisas in interbank trade and was traded at Rs156.23 as compared to the last closing at Rs156.25.

 

[Desi_Guy]

Due to equipment/agri exports or IT?

 

[ziaulislam]

Due to equipment/agri exports or IT?

Export are at 26b..mainly its remittance+low imports

Indian remittances stood at 79+331 b exports =410b
Pakistan exports 26+23b remiitances =50b

 

[Nothing]

Good progress.. now use this to stabilize exchange rate and curb inflation.

 

[PakAlp]

I expect forex reserves to be 40 Billion by 2023 and thats when I will believe some progress has been made, otherwise during Pml N government forex reserves touched 23 Billion mark and before we know, it went down to less than 10 Billion and nearly bankrupted us.

Good luck to Pti lead government

Export are at 26b..mainly its remittance+low imports

Indian remittances stood at 79+331 b exports =410b
Pakistan exports 26+23b remiitances =50b

Exports at 26Billion is good progress. By 2023 I hope exports crosses the 40Billion mark

 

[Foxtrot Delta]

wake me up when it touches 30 Billion $. in a coupe of years hopefully.

 

[Imran Khan]

I wish we reach 50bn in 5 years

 

[Pakistan Space Agency]

It's $8.6 billion not $15.9 billion.

 

[Dr. Strangelove]

It's $8.6 billion not $15.9 billion.

8.6 billion are just the Reserves held by SBP. 15.9 billion include both the SBP Reserves and the Reserves held by Private Banks.

 

[Code_Geass]

we started importing heavily when we reached to 20 bn and did not adjusted our currency accordingly when reserves fell till too late.

 

[Inqhilab]

Export are at 26b..mainly its remittance+low imports

Indian remittances stood at 79+331 b exports =410b
Pakistan exports 26+23b remiitances =50b

331B are just goods exports. Total exports (goods and services) of India were 537Billion. Last year India exported 204.95B worth of services + 42B in Fdi.
So your calculations are not right it should be:
Indian remittances stood at 79B + 537B exports + 42B fdi =658B
Pakistan exports 26+23b+1b remiitances =51B
So despite deficit in goods trade India's services exports make sure that India's foreign currency reserves keep on expanding.
There is even a possibility that India's service exports might surpass India's goods exports, this is not a good outcome for India because of these services exports make Indian rupee overvalued which make made in India goods expensive
so exports of goods suffer. Reason this is not ideal scenario is that service exports are not labour intensive unlike garment exports. So success of India's IT services is hampering India's goods exports in labour intensive industries. If India want to industrialize it has to move quickly and make some meaning reforms in labour and land areas because advanced robotics, automation and artificial intelligence gonna knockout most of the manufacturing jobs in next 15 years.
Pakistan's case is even more hopeless than India's because even if the current account deficit is set aside, there are some structural problems with your economy. Pakistan's savings rate is 3% percent of GDP. Bacause to enhance productivity you have to borrow money and make investments. But bacause there is almost no savings domestically so you have to either borrow externally or attract huge amount of Fdi. India and China can run huge fiscal deficit because they can finance it domestically ( India's savings rate 30%of GDP , China's 45%). So if there is no structural Improvement in Pakistan the growth rate for next 10 years most likely will remain around 2-3%. Similarly India's case is not as optimistic as some people try to make. If India don't make land labour reforms it's economy will remain in 5-6% trajectory which is not enough. To avoid social unrest both India and Pakistan need at least 8-10% growth.

 

[ziaulislam]

331B are just goods exports. Total exports (goods and services) of India were 537Billion. Last year India exported 204.95B worth of services + 42B in Fdi.
So your calculations are not right it should be:
Indian remittances stood at 79B + 537B exports + 42B fdi =658B
Pakistan exports 26+23b+1b remiitances =51B
So despite deficit in goods trade India's services exports make sure that India's foreign currency reserves keep on expanding.
There is even a possibility that India's service exports might surpass India's goods exports, this is not a good outcome for India because of these services exports make Indian rupee overvalued which make made in India goods expensive
so exports of goods suffer. Reason this is not ideal scenario is that service exports are not labour intensive unlike garment exports. So success of India's IT services is hampering India's goods exports in labour intensive industries. If India want to industrialize it has to move quickly and make some meaning reforms in labour and land areas because advanced robotics, automation and artificial intelligence gonna knockout most of the manufacturing jobs in next 15 years.
Pakistan's case is even more hopeless than India's because even if the current account deficit is set aside, there are some structural problems with your economy. Pakistan's savings rate is 3% percent of GDP. Bacause to enhance productivity you have to borrow money and make investments. But bacause there is almost no savings domestically so you have to either borrow externally or attract huge amount of Fdi. India and China can run huge fiscal deficit because they can finance it domestically ( India's savings rate 30%of GDP , China's 45%). So if there is no structural Improvement in Pakistan the growth rate for next 10 years most likely will remain around 2-3%. Similarly India's case is not as optimistic as some people try to make. If India don't make land labour reforms it's economy will remain in 5-6% trajectory which is not enough. To avoid social unrest both India and Pakistan need at least 8-10% growth.

and imports?