Rupee's Remarkable Renaissance

[Zafra]

Re: Rupee’s Remarkable Renaissance

@khoji

If this money is what made difference then why is government not acknowledging it? Why is it hiding this deal?
And if this money did not make the difference then why is government not denying these rumors?

It is also being said that Saudis made some payment to Pakistan for doing their work in Syria.

There is definitely something fishy going on here. The macro economic indicators have not changed and yet there is this sudden rise in rupee value with no reason being given by the government.

May people accuse Musharraf of building economy by selling the country to the US. I wonder if they will say the same thing about this Taliban-nawaz government which has sold Pakistan to the Wahhabi kingdom.

Will rupee appreciation last? | Business Recorder
The prime reason for rupee to revert back sharply in the last week is the building up of SBP reserves which are up from the low of $2.84 billion to $3.92 billion in a span of three weeks. Some of the flows like CSF money were well anticipated but the market was surprised by around $700 million jump in reserves in the third week of February. That is probably due to $750 million in aid coming from Saudi Arabia for some military related supports to the Kingdom.

That has changed the sentiments–punters, traders and treasurers are expecting reserves to build up further on account of some negotiations going on with KSA and some GCC countries for deferred oil payments. The government has almost finalized a deal with KSA for six months deferred oil payments for a period of three years, similar deals are envisaged with Kuwait and the UAE.

Together, these measures can give a cushion of over $5 billion in imports payment in next six months and that can be continued for three years. Even, only with Saudis we can save $400-500 million per month in oil import payments for six months and forex reserves to be up by same amount. No wonders, the SBP expects its reserves to reach by $4.7 billion by April end and $6.7 billion by June end (See BR Research article Whats behind rupee appreciation?" published on Feb 18).

If Taliban-Nawaz government is building this castle based on deferred oil payments for a few years then it means that this is nothing but political game play by the government. Pakistan would have to make oil payments at some point of time.

Musharraf did the same thing. What is good for the corrupt dictator who ruined the country is good enough for the democratically elected government.