Forex reserves cross $15b mark

[Silly_Billy]

Re: Forex reserves cross $15b mark

@Sa1eem

Government cannot take them, depends on who is ruling

If country has corrupts as rulers who wants to steal country’s foreign exchange reserves, they can steal that easily, and that is what NS and BB always did.

What these corrupts do is that they order goods on behalf of Pakistan government for let say 100 million dollars, then Pakistan receive almost nothing or say 10 million dollars worth of goods. The company they ordered keeps around 20 to 30 million dollars (depending on what type of goods they ordered and what they agreed with the company) and transmit the rest to the account of these corrupts (normally in the account of some shadow company these corrupts started abroad for the purpose to steal country’s wealth, registering these companies in tax heaven countries with no regulations, like Bermuda, Panama, Channel Islands, etc). Sometime the company that takes the order itself is their own (corrupts) established company.

That is the reason, foreign exchange reserve for Pakistan never exceeded certain amount, as corrupts were stealing from Pakistan foreign exchange reserve all the time. These corrupts use to steal even those dollars these corrupts used to borrow in the name of Pakistan from abroad, at very high interest rates, to be paid by Pakistan future generation. Most loans taken by past corrupts in foreign currencies as well as local currencies were for stealing.

Corrupts (that includes politicians in power as well as bureaucrats and others) also stole country’s foreign exchange by another ingenious method (something that started in 1973 when Bhutto abolished bonus voucher but did not let the rupees completely float until present government that made rupees completely convertible at market rate). Under this method, official exchange rate and conversion facility was made unattractive for remittance, so that most remitted money comes through illegal means (hundi). These corrupt then buy those dollars from what rupees they stole from country (through bribery as well as other means), and move that dollars abroad.

Excellent post. :k: