Pakistan’s net international reserves stand at negative $4b

[Hareeb]

whats special about it?

FDI

The credit goes to the population not the skills

Same goes for India. Doesn't it?

 

[manga]

Wait for @BHarwana he will come up with his story and prove how this is a good news for pakistani econmoy.

 

[Śakra]

Wait for @BHarwana he will come up with his story and prove how this is a good news for pakistani econmoy.

He was saying pakistan is in a better position because petrol is cheaper per litre in pakistan than India. I guess Venezuela is firdows cuz it cost 1 cent/L. @SunilM @Nilgiri

 

[SunilM]

He was saying pakistan is in a better position because petrol is cheaper per litre in pakistan than India. I guess Venezuela is firdows cuz it cost 1 cent/L.

Hail the tomato trader!

 

[Mage]

Just remove him and put Biradar @BHarwana. He will fix it like Magic.

But then Pakistan will experience famine due to tomato shortage

FDI

How much FDI Pakistan received this year?

 

[VCheng]

I understand the need for time for PTI to fix things.

I'm simply trying the assess what it is they are trying to fix!

I am not being facetious. They need to fix just about everything, which is not an easy task.

That message is directed to particular members trolling in Indian economic sections.

Expecting such messages to be heeded is futile, Sir.

 

[Abdussamad]

...because it is not an investment...but loan. It must be showing under external debt.

Because it’s a loan

There is an equity component to these as well and that should show up in the FDI figures.

 

[Nilgiri]

Nicely Explained. @Nilgiri

I speculated these issues cropping up (if no commensurate reforms done side by side) quite some time back (Ever since CPEC loans were being loaded onto Pak economy and people didn't even get that its not FDI). But of course response was quite hostile...which is ironic because same kind of people are now blaming all the ills on the NS admin (which is true to large degree...but why not genuinely do that before instead of giving free pass and even praise just because its CPEC?)...and label any Pakistani detractors as "patwari" or whatever....as though fundamental logic and economics cares about identity politics.

Dbl leveraged account keeping is especially very disturbing if that is indeed what is going on (local + foreign leveraging using the same backing capital).

It is increasingly looking like Pakistan went for easy route with a hail mary objective....rather than go for long term reforms to build up the system more robustly (but that would mean saying no to loan buffet till you do it).

It will require very much more transparency and honesty by current govt to address these issues systematically...rather than just continuing more of the same strategy and tinkering a few optics. I will give them a year or two first though.

@VCheng

 

[Mage]

I speculated these issues cropping up (if no commensurate reforms done side by side) quite some time back (Ever since CPEC loans were being loaded onto Pak economy and people didn't even get that its not FDI). But of course response was quite hostile...which is ironic because same kind of people are now blaming all the ills on the NS admin (which is true to large degree...but why not genuinely do that before instead of giving free pass and even praise just because its CPEC?)...and label any Pakistani detractors as "patwari" or whatever....as though fundamental logic and economics cares about identity politics.

Dbl leveraged account keeping is especially very disturbing if that is indeed what is going on (local + foreign leveraging using the same backing capital).

It is increasingly looking like Pakistan went for easy route with a hail mary objective....rather than go for long term reforms to build up the system more robustly (but that would mean saying no to loan buffet till you do it).

It will require very much more transparency and honesty by current govt to address these issues systematically...rather than just continuing more of the same strategy and tinkering a few optics. I will give them a year or two first though.

@VCheng

What does patwari mean?

 

[Śakra]

What does patwari mean?

People who support Nawaz an PLM N

 

[VCheng]

It is increasingly looking like Pakistan went for easy route with a hail mary objective....rather than go for long term reforms to build up the system more robustly (but that would mean saying no to loan buffet till you do it).

It will require very much more transparency and honesty by current govt to address these issues systematically...rather than just continuing more of the same strategy and tinkering a few optics. I will give them a year or two first though.

Of course I have been advocating giving plenty of time to the new government to start implementing its policies all along.

Having said that, the portents are not good that it will be able to achieve the deep and basic reforms needed to avert economic disaster. The entire country has become far too dysfunctional for that to happen in any meaningful way.

However, I am repeatedly reminded here to never give up hope, so I end by saying that all is not lost yet and we all remain hopeful despite the evidence.

 

[ziaulislam]

https://profit.pakistantoday.com.pk...t-negative-4b-excluding-imf-debt-obligations/

ISLAMABAD: Figures released by the State Bank of Pakistan (SBP) on Wednesday have revealed that the country’s balance of payment crisis isn’t over since its net international reserves are negative $4 billion even after eliminating IMF debt obligations.

The figures released by the central bank show up to one-year obligations of the central bank surpass its gross official foreign currency reserves by around $4 billion, reports Express Tribune.

Last week, the gross official reserves of SBP were recorded at $8.2 billion against its short-term liabilities which stand around $12.2 billion.

SBP’s gross official reserves are mostly retained by contracting short-term loans from commercial banks and taking Chinese and Saudi deposits under currency swap arrangements.


Till September 2018, SBP had obtained $7.22 billion from commercial banks in the aegis of forward and currency swap arrangements.

Also, SBP needs to return $1.5 billion within a month, $3.2 billion within three months and a remainder of $2.6 billion in a years’ time, official data reveals.

Swap deals reached with commercial banks are in the range of 2.5% to 4% interest rates, as per banking sector sources.

Moreover, the central bank owes $1 billion to Saudi Arabia, $3 billion to China and $700 million to various lenders, said sources.

And approximately $453 million are repayable to the IMF in current FY19, which will directly be deducted from SBP’s reserves.

As per the IMF’s definition of Net International Reserves, SBP’s reserves would stand at -$9.7 billion after inclusion of its overall $6 billion obligations.

However, the IMF’s repayments are to be done over a period of coming five years, hence, all the amount cannot be eliminated against the short-term liabilities of SBP.

actual its -90b as we have 97b obligations..
what kinda BS is this

I don't get it; where the heck did all the forex go? What about the billions that Pakistan receives from its own emigrant population to the Gulf? That should be a significant amount of forex.

One question here; why is it that this problem didn't exist until last year and all of a sudden all the reserves are showing red?

in 2017 in order to keep inflation low PML N blew up 10b dollars..where india adjusted it rupee by devlauting time and gain as needed we didnt result infront of us
second in order to get better taxation, he froze liquidity of exporters resulting in drop of exports

 

[Ryuzaki]

Where did CPEC 62 billion go?

 

[randomradio]

I speculated these issues cropping up (if no commensurate reforms done side by side) quite some time back (Ever since CPEC loans were being loaded onto Pak economy and people didn't even get that its not FDI). But of course response was quite hostile...which is ironic because same kind of people are now blaming all the ills on the NS admin (which is true to large degree...but why not genuinely do that before instead of giving free pass and even praise just because its CPEC?)...and label any Pakistani detractors as "patwari" or whatever....as though fundamental logic and economics cares about identity politics.

Dbl leveraged account keeping is especially very disturbing if that is indeed what is going on (local + foreign leveraging using the same backing capital).

It is increasingly looking like Pakistan went for easy route with a hail mary objective....rather than go for long term reforms to build up the system more robustly (but that would mean saying no to loan buffet till you do it).

It will require very much more transparency and honesty by current govt to address these issues systematically...rather than just continuing more of the same strategy and tinkering a few optics. I will give them a year or two first though.

@VCheng

The Chinese have refused to bail Pakistan out.

And the Chinese say any future loans have to be secured.

This is very sad and very bad.

They did it to themselves, knowingly.

Where did CPEC 62 billion go?

Gone back to the Chinese for capital purchases for CPEC.

 

[SuvarnaTeja]

Where did CPEC 62 billion go?

CPEC is investment. Not a loan.