Re: Pakistan’s forex reserves exceed $16 billion
These 16 billion dollars … it comes to around 2 billion dollars a year from 1999 to 2007. These dollars that we see as reserves are dollars that Pakistan receives every year from various sources but could not spend that in imports (and other dollar expenses). Big chunk of those dollars are workers remittances. These dollars, rather much more than that came to Pakistan every year and left Pakistan every year before Musharraf took over in 1999.
Difference is that, today large part of those dollars reaches State Bank of Pakistan and gets shown as reserves of Pakistan but in past it use to reach Swiss Bank accounts and bank accounts of other western countries, and use to show in the bank account balance of Pakistani thugs and choors.
It is estimated that Pakistani thugs and choors have over 100 billion dollars in various western banks (plus they these thugs and choors also have dollar investments in properties and shares all over the world). These dollars that should have been with State Bank, but crooks and thugs got hold of that and now they are in western banks.
These crooks and thugs stole those dollars not directly, but actually they stole rupees and then they bought dollars from open market from those rupees to send them abroad. Because of their demand, dollar was always short in open market and exchange rate kept rising. When duo thugs came to power, dollar in open market was Rs 20 but when NS left, dollar in open market was Rs 60 plus.
If as someone claims that Pakistan government bought a lot of dollar from open market, than what is wrong there? Pakistan paid rupees for those dollars and those who sold dollars needed rupees. It shows that those dollars was Pakistani bound dollars. It was earning of Pakistan as all dollars, be they earned through exports, remittances or from whatever sources, they are earned by people who after earning sell it to government and take rupees. Similarly those who want dollar from government give rupee to government and take dollars. Hence all dollars that people sell for rupees are Pakistani dollars (even if they sell it in open market).
In the past instead of Pakistan government getting that dollar, corrupts use to buy them using their corrupt money (rupees) and send them abroad.
Stability in open market dollar exchange rate shows that corruption in Pakistan has decreased substantially else open market dollar rate would kept going up because corrupts would have kept buying those dollars and with their demand, dollars would become scarce, making their value increase. But since there is less corruption, demand for dollars are less, and thus exchange rate is stable, plus dollar reserve is increasing.
All these increase in dollar reserves is result of reduction in corruption and nothing else.
party. Awam pouring out in sheer jubilation. Bhai wah. What an historic achiebment indeed.
