SBP reserves critically low at $6.9 billion (practically zero)

[blain2]

Hmmm ..... is that what Boys telling each other these days? Or this Goli is for new chief only ?

Addendum: Ahh .... Never mind as you are getting your information from Wajahat S. Khan.

It wasn't the boys that got you to this state of financial bankruptcy. Ask those in governance and those before why we are here.

For the tongue-in-cheek comment, would you prefer that I should be getting my news from your/PTI's blue-eyed boys i.e. Moeed Pirzada or Imran Riaz Khan toeing the party line? The bond payment dues are widely covered across multiple news outlets so one does not need to rely on one source only.

For those constantly banging about "default, default" and comparing Pakistan to SL, you should realize that SL defaulted because more than half their liabilities were through floating bonds and those came due and they were not able to pay. In Pakistan's case, less than 8% of our debt is comprised of floated bonds. The rest is as I stated above. Yes, we need more liquidity and greater foreign reserves but inshallah Pakistan will manage.

Also, look at the byline of the article. This is where the problems start, and gradually snowball into something much bigger. Give it a couple of months before we see news articles 'Sipah salar nay mulk ki khidmat ki, jaan bazi par laga kar Saudi say paisay lay kar aye' and Hilal magazine and Khaleej Times would be running front cover stories. A couple of more months and the COAS would be dangling this over the government and counting it as an ehsan, and then this would be discussed in CC meetings and LUMS talks keh main ja kar paison ka bandobast karta tha. Has happened recently, will definitely happen again. Sorry for going off tangent.

Then no different than PTI/Bajwa same-page story, right? Is it my or your fault that the idiots in the PTI and PDM governments end up giving a BPS-22 officer carte blanche to run the country's foreign policy? I have said it before, don't cede this space and then cry afterwards that "establishment" gets involved in politics. We have a penchant for not learning from our mistakes.

 

[VCheng]

It wasn't the boys that got you to this state of financial bankruptcy. Ask those in governance and those before why we are here.

Many would disagree here that the military has no share of the blame. They do. Clearly.

 

[blain2]

Many would disagree here that the military has no share of the blame. They do. Clearly.

They were not running the day to day fiscal policy of the country. The past two governments and their 5 + 2 Finance Ministers were.

 

[VCheng]

They were not running the day to day fiscal policy of the country. The sitting governments and their 5 + 2 Finance Ministers were.

That is indeed true. But please keep in mind that they are allowed to play within a well-defined sandbox only. The military's role in destroying every other institution that could possibly challenge its supra-Constitutional supremacy has gone on for decades, and recent events are but a natural culmination of those processes. Even now, it hides behind a civilian façade to deflect blame away from itself while it calls all the shots from behind the scenes.

 

[doorstar]

Only failure to pay up on bonds leads to a formal "default". Rest of the loans are bi-lateral or multi-lateral that have and can be rescheduled. This is the game each government plays passing the buck on to the next.

have you ever noticed that as soon as they see their end nearing they print bank notes ("borrow" from state bank) to increase salaries, start tarakiyati mansoobas?

then they and tv analists blame loss in the value of Rupee on IMF

 

[N.Siddiqui]

An engineered default by political engineering by the Mil-Establishment.

A large part of the loans are bad debts, taking loans to pay loans and by mortgaging precious assets.

Can't get any smarter, thank you Mil-Establishment.

 

[SIPRA]

An engineered default by political engineering by the Mil-Establishment.

Now, it seems that our whole GHQ is on payroll of CIA.

 

[N.Siddiqui]

Now, it seems that our whole GHQ is on payroll of CIA.

GHQ reports directly to CIA and Pentagon, and not to Pakistan govt. and the president
( the so-called supreme commander).

GHQ: Gee Hazir Qibla

 

[N.Siddiqui]

There are chances that the PDM govt., Ishaq Dar, will freeze the local rupee bank accounts of Pakistanis, as some panic withdrawal is looming.

And with some restrictions and ceiling so larger amounts are not transacted as in the case with India when demonetization went ahead.

 

[pikkuboss]

Sure, but let me just stay relevant to the current point: IK is just another demagogue who is giving false hopes to the nation that will never be realized. In the context of this thread, he simply has no plan that will set right Pakistan's economy.

Doom and gloom? No, please hope all you want. Pakistanis will continue to get poorer and poorer with worsening social indices, while the elite live the good life, and keep weeding out those who want any changes.

When a non oil producing 3rd world country subsidises fuel, believe me, that leader should be thrown out as soon as possible. India, even in this volatile market has more than 100% tax on fuel, sometimes even more. We also have liquor which is taxed at 100-150% in different states, you don't have that too. Printing money is the only option for you.

 

[doorstar]

Now, it seems that our whole GHQ is on payroll of CIA.

can you prove it? as I recall you were no fan of pirni, khan or shah mehmood et.al when their tola was in power. why this about turn?

only thing/common thread I find here now and then is hatred for the forces. anyone who is against them, you people are with him.

if it were up to moron e ahzam taliban khan (and the fat chor), Pakistan would now be a satellite of bharat like BD, bhutan and maldeep. or it will be doing jehad against NATO afghando bachabaz style.

according to him

• bharat is a benevolent entity, as a proof he cites the "wealth" BD is supposed to have accumulated since joining hands with India (forgetting/ignoring the actual plight of bengalis esp. women)
• amreeka is evil, it helped Gen. Musharraf kill "mujahideen in erstwhile FATA and cost him some 165 billion imaginary dollars (burda frosh, nasha frosh, killers, smugglers, and terrorists were his mujahideen)

An engineered default by political engineering by the Mil-Establishment.

A large part of the loans are bad debts, taking loans to pay loans and by mortgaging precious assets.

Can't get any smarter, thank you Mil-Establishment.

LeGenD

 

[Horse_Rider]

Majority of reserves are deposit from China, KSA, cannot be spent.

View attachment 903095

Saudia has approved an aid package with $ 3 billion. Not sure why it hasn't hit the media yet but it should be announced later today or tomorrow. They will support further if need be. This situation would ease off pressure from Pakistan's import / export imbalance. Now the real catch is for the current sitting government to establish long-term policies and work on emergency basis to start fixing the financial mess. We need to increase our income vs. expenses. A poor country like Pakistan imports even things like Cheese, Peanut Butter, etc (go to the local super stores and see EU / American brands). While our poor families have to live below 25,000 rupees. Who said this is acceptable? Certain bans on imports are desperately needed to encourage local products and associated manufacturing and doing business in Pakistan MUST be made easier than it's been.

 

[VCheng]

When a non oil producing 3rd world country subsidises fuel, believe me, that leader should be thrown out as soon as possible. India, even in this volatile market has more than 100% tax on fuel, sometimes even more. We also have liquor which is taxed at 100-150% in different states, you don't have that too. Printing money is the only option for you.

Obviously, Pakistan is NOT India, that is all I can say.

 

[AZ1]

Ishaq Dar requested Saudi Arabia to urgently provide $ 4.2 billion to Pakistan

Finance Minister Ishaq Dar sought $4.2 billion from Saudi Arabia on Thursday after the foreign exchange reserves fell critically low. According to sources, the federal finance minister, Ishaq Dar, requested that Saudi Arabia urgently provide a $4.2 billion package to Pakistan. Oil and...

startuppakistan.com.pk

 

[epebble]

Only failure to pay up on bonds leads to a formal "default". Rest of the loans are bi-lateral or multi-lateral that have and can be rescheduled. This is the game each government plays passing the buck on to the next.

Since commercial loans form only a small part of debt portfolio, there will not be a formal default. The problem will be lack of liquidity. With imports frozen, shortages will likely crop up. The trajectory will approximately track Sri Lanka.