Pakistan Forex Reserves $15.780 Billion Aug 4 Vs $15.792 Billion
KARACHI -(Dow Jones)- Pakistan’s foreign exchange reserves fell to $15.780 billion in the week ended Aug.4 from $15.792 billion in the week ended July 28, the State Bank of Pakistan said Friday. Reserves held by the central bank rose to $13.403 billion from $13.361 billion. Foreign exchange deposits held by other banks totaled $2.377 billion, compared with $2.431 billion earlier.
Forex reserves is an interesting figure and we ought to deal with it in a cautious manner. This is a combination of Western aid + trade.
My hats off to the current government for this achievement. It clearly shows that money inflow has helped the “national reserve”, and misappropriation has remained at a low level.
Having said that, we shouldn’t ignore the fact that Nawaz Sharif was forced into low reserves by our nation.
Our nation back then sang the song that was pretty much like that Bollywood song:
Bum maro Bum, [trans: explode nukie, explode nukie]
Mitt jaiay ghum, [trans: It will alleviate all our miseries]
bolo subha Shaam, [trans: Repeat this mantra every waking moment]
Nukie is our Imam [Trans: Nukie terror is our true god]
Yes guppies, we wanted to go boom after Indian $tupidity with nukes. There were really few sane voices in Pakistan.
We could have avoided Bum maro bum, and milked Clinton government for aid and trade.
Unfortunately as a nation we opted for empty bravado, and paid for it with our precious Forex reserves. The situation got so bad, that namak haram AQ Khan ended up peddling our precious nukies to the rogues states of Iran, Labia, and Kim-Kim jannat North Korea.
We haven’t learned from that sad experience. Those insane voices haven’t gone away. We can hear them from Mullahs, and even parliament. People want to do Jihad against US. This is the same Bum maro Bum Talibanic bubonic self destructive mentality that hurts us so much.
We must guard this Forex reserve by shielding ourselves from Bum-maro-Bum mentality.
Pakis who hate Mushy for whatever reason will link every positive news with Amreek and AID....
Thats true. They are waiting for Mushy to make an accord with BB, so they can say how Mushy backed off of his promise of never allowing BB and Shareef back to the ruling ranks. But the point is, even if Mushy does not make an accord with BB, thats not gonna make him look good in the eyes of these hate mongers anyways.
economics 101 ka shukriya. magr bhai jaan, I never questioned what the govt. could do with the money yet u said it is a big deal, two times in one breath. Why so defensive?
anyhoo, the borrowing bit..I was told our govt borrows with open arms, legs and a gaping mouth, not from IMF…tata to that, but from the poor old Shamshad Begum. What that does to inflation, and how inflation secured the top position in “issues on my mind for next election” is another matter altogether. SO what u say might be true in principle, even that I’ll have to check up on, but the practise on ground is far from what u have been led to believe.
aray bhai jan..all I am saying is that Shamshad Begum of the SBP, the aggrieved party, recently said while issuing the Monetary Policy statement that the govt. borrowings from the state bank keep exceeding their targets which is building up inflationary pressures in the economy. The same inflation which was perceived as the biggest issue facing common man by the recent IRI report.
ab is mein World Bank or fallana Bank kahan say aa gya, I don't know.
I dont know about the unforeseen needs. the state bank wasn’t too keen on the budget. too expansionary.
The federal budget for FY08, while carrying positive incentives, entails an
expansionary fiscal stance with a substantial increase in the total budgetary outlay. In addition to the initiation of investment projects particularly in housing and construction, several relief and compensatory measures have been announced that are likely to generate extra demand in the economy. This excess demand is expected to exert pressures on the general price level through two channels. On the one side, income increase due to the 15-20 percent rise in pensions and salaries and enhancement of minimum wage of unskilled labor from Rs 4000 to 4600 per month. On the other, increase in purchasing power due to subsidies and other transfer payments of Rs 114
billion, against Rs 89 billion budgeted last year. Any inflationary impact of the fiscal measures would need to be contained.
ok, now tell mushy to invest some of that money for the betterment of Pakistanis, too. 'cuz all we see on the streets of Pak is poverty, middle-class getting poor, and poor gettin poorer.
“khazana bhara howa hai” musharaf’s fav line during most of his national addresses but where does all that money go? no one knows.
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