Forex reserves fall to $10.487bn

Society Pakistan & World Affairs
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Thanks to the Unprecedented Economic Growth, the Unprecedented amount of Foreign Reserves inherited by the present govt are being eaten up very very fast.

If the govt does not start governing soon, rather than continuing with nonsensical rhetoric, then Pakistan will be back to pre 1999 days very very quickly. :frowning:

Pakistan News Service - PakTribune

Forex reserves fall to $10.487bn

**KARACHI: Pakistan’s foreign exchange reserves fell $241 million to $10.487 billion in the week that ended on July 26 due to outgoings for import payments, the central bank said on Thursday. **

According to official data, the State Bank of Pakistan said its reserves fell $330 million to $7.448 billion, while those held by commercial banks rose $89 million to $3.039 billion from $2.95 billion.

Total reserves are now down to the equivalent of less than three months of imports, raising the prospect of a balance of payments crisis unless large multilateral loans arrive soon.

The government says it has obtained Saudi Arabia’s agreement to defer oil import payments for the 2008/09 fiscal year (July-June) and an announcement would be made soon by Saudi Arabia.

Pakistan’s foreign exchange reserves hit an all-time high of $16.486 billion on Oct 31, 2007, but have fallen since then because of rising oil payments and foreign investors pulling money out because of political uncertainty dogging the country after a civilian coalition formed a new government.

The central bank on Tuesday tightened the monetary policy by raising the discount rate to 13 per cent from 12 per cent to counter accelerating inflation and widening fiscal and current account deficits.

It also took steps to help stabilise the rupee earlier this month. The main measure was a temporary suspension of forward booking of foreign currency for all imports.

An assurance was also given that the central bank would provide foreign exchange to authorised dealers for all imports of furnace oil used for power plants.

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Aalsi,

Pakistaniun ko bhooka mar kar aor unko America ke hawalay kar kay jo forex kamaya hay ab time aa gya hay ke is forex ki aisi ki taisi karo. London aor Dubai main gana gana aasan hay. Ja kar gharibon kay ghar dekho na to unke paas koi rozgar hay nahi unkay paas aata. forex my a$$. sharam karo bhai. jhoot bolnay ki bhi koi had hoti hay.

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Re: Forex reserves fall to $10.487bn

^ Lets not get personal

Cafe Mafia
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Re: Forex reserves fall to $10.487bn

LOL . General Motor lost 15 billion dollars in the last quarter …

Our reserves are 30 percent less than a company’s 3 months loss :samck:

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The point is? :asa:

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Re: Forex reserves fall to $10.487bn

I am pointless bhai sahab :D

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TLK bhaijan. The above indeed puts into perspective the measly $500million Pakistan was left with in 1999.

Thanks to the Unprecedented Economic Growth, Pakistan managed to increase its Foreign Reserves to the Unprecedented heights of over $16 billion.

Unfortunately, these foreign reserves, with no economic activity now taking place, are being eaten into very very fast. :frowning:

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Are you suggesting all industries are shut down and waiting for Musharraf to do something about it?

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No. Stagnation, and no significant investment. God Bless Pakistan. If the government does not start governing, Pakistan may not recover from the current crisis for a very long time. :frowning:

The Unprecedented Economic Growth seen until last year now seems such a distant memory. :teary1:

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Pakistanis must understand that sometimes democracy is not good for economy. Instead a pro-West dictatorship helps economy.

In our case Pakistan prospered during the periods of Army rule. While our wayward democracies messed up and goofed up big time. Case in point the terrible policies of Zulfi Bhutto utterly destroyed whatever we gained from the phenomenal growth during Ayub's time.

Same thing is true with military rule after Zulfi.

It is not just Pakistan, you just look around and find that Iron fisted policies in pro-USA China, S. Korea, Singapore, Taiwan etc. have totally changed the economic landscape in those countries.

Current democratic government in Pakistan can also improve the economy but it has to use Iron-fisted pro-West policies.

The $billion question is: Can they "do" it?

We all admire China with our talk, but none of us wants to walk like pro-USA Chinese. Strange huh?

p.s. People who compare GM's budget to Pakistan must realize that in our neighbor hood budgets are pretty small by American corporate standards:

India $180 billion (includes deficit of $40 billion)
BDesh $10 billion (includes deficit $4 billion)
China $650 billion (plus surplus of $25 billion)
Pakistan $28 billion (includes deficit of $6 billion)
Afghanistan $2.5 billion (includes a deficit of $1.75 billion)

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Re: Forex reserves fall to $10.487bn

Exxon reported a NET profit of $12B this QUARTER!

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Re: Forex reserves fall to $10.487bn

rising global costs are crippling pakistan slowly. an Argentina like melt down perhaps on the cards. risk of defaulting?

i say another coup, **** democracy, crush these political types. import substitution needed, massive 5 yr plan industrial development, whatever the human costs.

Turn Off's
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All thanks to Musharraf for not stepping away, of course he doesn’t realise that he is the centre of chaos, but then “Pakistan first” was someone’s slogan.

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I agree, similarly Saddam, Fidel, Fahd should ('ve been in some cases) all be supported, they are (were) good for their people :k:

Cafe Mafia
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ehtasab bhaijan. Thanks to Great President Musharaf, Pakistan has seen Unprecedented Economic Growth and Unprecedented amount of Foreign Reserves - the benefits of which are being reaped by the current govt. Without these reserves Pakistan would have been in deep crisis. If the new govt does not start governing soon, the money will soon run out, and Pakistan will be in deeper crisis and chaos than it is now.

Cafe Mafia
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Re: Forex reserves fall to $10.487bn

I think we need to be fair here and acknowledge that the Pakistani economy is in deceleration mode. While its true that there is an economic slowdown on the global level, over deteriorating position in terms of FX reserves and the KSE situation is a sure sign that this government is fumbling.

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hey man! It is all about picking your heroes. If your heroes are fidel or Kim il, then yeah you will suffer just like Cuba and North Korea.

I wonder why you totally ignored a positive example such as Turkey. Selective amnesia perhaps!

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The point is?

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Lets forget other countries if it disturbs you too much. How about Ziaul Haq as starter?

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I believe that Bhutto, Nawaz and BeNazir were all dictators, some worse than the other. On the other hand, I do not believe that Musharraf was/is a dictator. So, there is difference between classification of dictator and being not dictator. To me, a dictator is one who does not tolerate opposition and forces their will over others regardless of consequence. If Musharraf was dictator than we would have had Kalabagh dam by now, Lal-Masjud fiasco would not have lingered around for months, Nawaz would not have left Prison to Saudia, many of Musharraf's opponents like Iftikhar, Atezaz, Imran, etc, would have been in prison, no one in Media would have dared to talk against Musharraf or his government and would have been lucky to see next daylight, etc.

To me, regardless of how a ruler comes to power, a ruler could be good or bad. If ruler is good then country develops and prospers, while if ruler is bad then country goes to dogs.

As for those who take Western definition and consider 'One person authoritarian rule' as dictatorship, then rule of Prophet (SAW) in Medina, rule of Khulfa-e-Rashideen, later Kingdoms (Umayyad, Abbasids, Ottoman), as well as all other Muslim and non-Muslim Kingdoms before recent western style government, were dictatorship, as all was based on one person authoritarian rule. To me, amongst past mentioned rules, many can be considered better than western democracy, and many worse than western democracy.

Those who think differently, then please define clearly without naming anyone, what is 'dictator' to them? Then only we can go forward and argue, who could be classified as dictator (or not) and that if dictator can be better for a country or not?