Forex reserves surpass $8.2 billion

Society Pakistan & World Affairs
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In October 1999 they stood at just $0.5 billion, and are now heading towards a record $10 billion by the end of the financial year. Thats a historic ecnonmic achievment that no one should be allowed to spoil.

http://www.pak.gov.pk/public/news/news2002/appnews2002/app04_october.htm#3

Foreign Exchange Reserves stood at $8.203 Billion: Shaukat

ISLAMABAD, Oct 4 (APP): Finance Minister Shaukat Aziz on Thursday said the economic conditions are progressing satisfactorily as the foreign exchange reserves level have increased to $ 8.203 billion and the pace of revenue collection is in accordance with the set targets. While briefing newsmen here in his office, the Finance Minister said “if the current trend continues the foreign reserves may cross the level of $ 9 billion by the end of this year and $ 10 billion by the end of current financial year.

Shaukat said if we get more remittances, oil prices remain stable, exports perform well, GDP growth ratio remains between 4% to 5 % the economy would further consolidate with the passage of time. He said the exchange rate of Pak Rupee has come down to the level of Rs.59 against US dollar. “Our policy is to maintain the Rupee value to support our exports”, he added.

Shaukat Aziz said Pakistan’s net foreign debt has come down to $30 Billion in accordance with PIS formula. He said we are also looking for more resources following the Privatization of major industrial units of the country and more foreign remittances. While expressing satisfaction over tax collection, the Minister said “ the targets are being achieved satisfactorily”.

During first quarter of the current financial year from July to September a recovery of Rs. 90.2 billion has so far been achieved which is more than the set target of Rs. 90 billion. Elaborating, he said, total tax collection showed an increase of 16.5% which included direct taxes 10.1% increase, sale taxes 26.3% and Custom tax collection increased by 23%, Indirect Taxes collection increased by 20.4 percent while excise collection reduced by 3% as compared to the corresponding period of last year. He said custom proceeds have gone up despite reduction in custom duties. Replying to a question, he said, “we are preparing a contingency plan to deal with any emergent situation in case of Iraq War”.

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Awesome:) :k:
Go Pakistan!

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Excellent news-- looks like a Resurgent Pakistan will those "Failed State" noisemaker eat their own words.

Lets keep the momentum with privitization and diversification of industry.

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There have been stories that the government is looking at taking $3 to 4 billion from the Forex reserves to clear some of the $36 billion external debt? That could be a wise economic move, as it would save us hundreds of millions a year on interest payments annually, and allow us to spend much more on development.

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But what good has that done for the common man in Pakistan? The government can potray itself as the saviors of the economy all they want, but the fact of the matter is they have done nothing right in that regards... What good does these words highlighting the foriegn reserves do to the thousands who sleep outdoors in the cold?

Musharraf has failed bigtime when it comes to controlling 'mehangai' and we can only be overjoyed reading these mere words... This regime, like the ones before it has failed miserably in this regards. Furthermore, isnt it shameful that General sahib wants to carry on for the next 10 years? He is right when he says this country can produce good leadership, but also implies he gets out and lets a civilian regime carry on. Power corrupts everyone... Had it not been for his brilliant foriegn policies and efforts to curb extremism, he has done nothing good in Pakistan.

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"Power corrupts everyone... Had it not been for his brilliant foriegn policies and efforts to curb extremism, he has done nothing good in Pakistan."

I don't know Spock yara. I mean I'm no fan of dictators (or Pak. politicians) but objectively looking at Mush., he has done more than the foriegn policy and curbing extremisim. I can tell you that economically, Pakistan stands in a better position than 1998. True a lot of political changes suh as the Afg. wat account for economic improvements but at this point Pakistan's loans are rescheduled and on a soun footing, Pakistan (under IMF pressure of course) finally started GST adding revenue collection, the forex siuation you know, funding fo Kalabagh, development in Northern Areas and Baluchistan.

I do agree that power corrupts people and I would support any person working for the betterment of the common people. I think we should tackle MAJOR social welfare issues like Land Reform, Education funding increases and health care programs.

Spock, at this point of the game, I want to see Pakistan strong economically and the 90's screwed over our economy big time, so if politicians are thinking of repeating those fiascos, think again.

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mallik where were you? you dont have to make up for your abcence?

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:hula:

Malik, Welcome Back bud :slight_smile:

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MALIK, welcome back to GS!

http://www.smilies.nl/muziek/music049.gif

http://www.smilies.nl/wavey.gif

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WOOOO HOOOOOO !! GOOD JOB PAKISTAN!! :)

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[QUOTE]
*Originally posted by rvikz: *
mallik where were you? you dont have to make up for your abcence?
[/QUOTE]

heh

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[QUOTE]
*Originally posted by Spock: *
But what good has that done for the common man in Pakistan? The government can potray itself as the saviors of the economy all they want, but the fact of the matter is they have done nothing right in that regards... What good does these words highlighting the foriegn reserves do to the thousands who sleep outdoors in the cold?

Musharraf has failed bigtime when it comes to controlling 'mehangai' and we can only be overjoyed reading these mere words... This regime, like the ones before it has failed miserably in this regards. Furthermore, isnt it shameful that General sahib wants to carry on for the next 10 years? He is right when he says this country can produce good leadership, but also implies he gets out and lets a civilian regime carry on. Power corrupts everyone... Had it not been for his brilliant foriegn policies and efforts to curb extremism, he has done nothing good in Pakistan.
[/QUOTE]

Well, lets not blame Mush because when he took over country was already in miserable sate, he has little or no part in it. His govt. has done reather well on economic fronts.

But I still believe, he and his cronies who took over the country by illegal means should face treason charges for all the unonstitutional things they have done.

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I never said his efforts to end sectarian violence and extremism were not enough...

However, when it comes to corruption/plunder/loot mar his government is no better than Nawaz or BB... They can claim all the forex reserves (which they have again conviniently borrowed) and all the rising karachi stock markets, but the fact of the matter is, they have done nothing for the common man in Pakistan. And if it wasnt enough, he staged a illegal referundum which he conveniently rigged to make sure he isnt kicked out of power.

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[QUOTE]
*Originally posted by Spock: *
But what good has that done for the common man in Pakistan? The government can potray itself as the saviors of the economy all they want, but the fact of the matter is they have done nothing right in that regards... What good does these words highlighting the foriegn reserves do to the thousands who sleep outdoors in the cold?

Musharraf has failed bigtime when it comes to controlling 'mehangai' and we can only be overjoyed reading these mere words... This regime, like the ones before it has failed miserably in this regards. Furthermore, isnt it shameful that General sahib wants to carry on for the next 10 years? He is right when he says this country can produce good leadership, but also implies he gets out and lets a civilian regime carry on. Power corrupts everyone... Had it not been for his brilliant foriegn policies and efforts to curb extremism, he has done nothing good in Pakistan.
[/QUOTE]

But he has stabalized the economy. Now the future govt can build on his base. This govt is actually starting form a lot sturdier ground then the one tat General sahib started of with in 99.

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[QUOTE]
*Originally posted by Adnan Ahmed: *

But he has stabalized the economy. Now the future govt can build on his base. This govt is actually starting form a lot sturdier ground then the one tat General sahib started of with in 99.
[/QUOTE]

Stabilized? All I know is that petrol which was at 20something per liter when he came (i really dont recall as I had CNG in my car) is now at 40something... Whats the point in being overjoyed by these stupid forex reserve figures when nothing has been done for the common person... The price of virtually every commodity has gone up drastically...

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:k: right

I mean where was everyone when we were reading and hearing the noise about Pakistan being a failed State? That was a low point in our history, and now that the economy is bouncing back we can have some real growth. I think people should be objective in dealing with the economy, if it improves then say so. I don’t think politicizing the discussion because you hate Pres. Mush. or person X is going to do it.

The last time Pakjistani economy was on a surge was back in the 60s before the 1965 war. This is a golden opportunity for us to make smart macroeconomic choices and build the country into the next Asian tiger.

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Absolutely correct, and here is more on that.

Pakistan to enter best economies’ ‘Tiger Zone’

By our correspondent

KARACHI: Pakistan, which is well set on a road leading to a fast economic revival, will soon enter the best economies’ “Tiger Zone”, one highly-placed financial analyst said on Friday.

“Within five years Pakistan will be in the (best economies) Tiger Zone,” said the analyst as he referred to burgeoning foreign exchange reserves (now $8.2 billion), huge development plans, poverty reduction programmes, higher collection of revenues and increased foreign direct investment (FDI).

“Pakistan has now a clear cut economic direction,” the analyst said after Pakistani officials returned from the United States where they held a series of high level meetings with US officials while waving thumbs up signs for Pakistan’s economic revival.

“The delegation had shown a lot of confidence (on the country’s economy) and it met the officials of the World Bank (WB), International Monetary Fund (IMF) and the United States with nose up instead of a 'kashkol (begging bowl) in the hand,” the analyst said while giving details of economic resurgence during the last three years.

The delegation had very cordial bilateral talks in the United States, he said and added: “When you have $8.2 billion foreign exchange reserves, naturally you get a psychological boost in the arm.”

Because of big achievements in the economic fields, Pakistan was likely to attract $1 billion foreign direct investment (FDI) this year compared with some $486 million last year, the analyst said. The FDI was received in the oil and gas and other sectors.

He said the economy was functioning very well and the government was meeting all its major revenue targets and paying foreign loans and service charges on time.

The collection of customs duty on imported non-food and non-oil items had increased significantly.

“This shows that the import of machinery has increased which is a clear sign of bigger industrial activity,” he said. The analyst said Pakistan was setting up a debt office in Islamabad, which would look after all the debt issues and evolve a strategy to solve the issues.

President General Pervez Musharraf had given a green signal for the debt office, the analyst said. Referring to the government’s poverty reduction plans, the official said the higher remittances were also tackling the poverty issue. "The poverty is everywhere, in education, in health, in agriculture, in safety and security. It is a very complex issue. “But, the government should not be complacent with the higher remittances,” he said.

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Excellent news Malik! We are on our way back up and people are still complaining. The next challenge is the industrialization while keeping agriculture constant. I think we can do it, as the time is right, the people are ready and the leadership is finally showing backbone.

I want to see Pakistan to improve and I do not care what leader is in charge as long as Pakistan is prosperous.

Pakistan Zindabad!

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[QUOTE]
*Originally posted by RajputFury: *

Excellent news Malik! We are on our way back up and people are still complaining. The next challenge is the industrialization while keeping agriculture constant. I think we can do it, as the time is right, the people are ready and the leadership is finally showing backbone.

I want to see Pakistan to improve and I do not care what leader is in charge as long as Pakistan is prosperous.

Pakistan Zindabad!
[/QUOTE]

Inshallah.

Whatever people say about any Musharraf's failings they cannot cannot deny the very key economic achievements of his government in the last three years. Forex reserves up from just $0.5 billion in Oct 1999 to an amazing $8.2 billion exactly three years later. Remittances from Pakistani's abroad are targeted to reach $ 3 billion in the coming year - a six fold increase in the last three years. In the last three years tax revenues have increased over 50%, meaning more money pumped into national development projects that the Musharraf has announced. Gwadur port, Makran Highway, Lyari bypass being some prime examples. GDP growth rate is estimated to be over 4.5 next year, not bad when you consider it was half that three years ago. All these economic achievments will take a few years for the benefits to feed through to wider Pakistani populous, but if the momentum is kept up then there will be lasting economic improvement and transformation. For that we need patience, a little more trust in President Musharraf, and to keep on praying that greedy politcians do not spoil all this.

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Let's pray together everything works out in favor of Pakistan, Inshallah!