Pakistan’s foreign exchange reserves to reach 19 billion dollars by end this month: Finance Minister

[Shahzaz ud din]

Pakistan’s foreign exchange reserves to reach 19 billion dollars by end this month: Finance Minister
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March 9, 2019

Pakistan's foreign exchange reserves are expected to reach 19 billion dollars by end this month according to Finance Minister Asad Umar.

The finance minister, in meeting with corporate heads in karachi, has said Pakistan is to receive USD 2 Billion from the UAE next week, as confirmed earlierby the State Bank of Pakistan.

Pakistan is also expecting USD 2 Billion from China by the end of this month which will help in keeping the current account deficit in check as well as support the Rupee.



Posted on: 2019-03-09T20:47:00+05:00
26595

 

[I S I]

All because of our Shahzaz ud din ji. All hail the martyr.

 

[Jungibaaz]

Band-aid solution, but good luck to him in implementing the reforms that others failed or refused to do. If he does it well, he'll put Pakistan in a much better situation five years from now.

 

[Chakar The Great]

19 Billion??? Last time I heard was hardly 8 Billion US $.

 

[HttpError]

We need at least 100 Billion $. In order to compete and overwhelm our enemy, we need to step up our game in economics. Only then we can get rid of financial blackmailing and can induct some super new toys.

 

[ziaulislam]

Band-aid solution, but good luck to him in implementing the reforms that others failed or refused to do. If he does it well, he'll put Pakistan in a much better situation five years from now.

Solution is to bring CAD to 2-3% of GDP (india and Bangladesh has it at that level)

So that means around 6-9b/year
Pakistan projected CAD was 24b for this year and was 18b last year..this year it will be around 13-14b and per month its dropped less than a billion (around800 m) which mean year 2019-2020 it should easily be contained to less than 10b

Acheiveing this drastic change is significant feat. Thanks to amazing growth in remittances (13%) mild exports growth(2% which will pick up now) and decrease in imports (2-3%)

19 Billion??? Last time I heard was hardly 8 Billion US $.

Pakistan also count reserves held by private banks

As technically state bank can get those as well though not a bright idea as we saw in 1998

 

[AZADPAKISTAN2009]

These numbers mean nothing fix the tax system and train system & water issue

 

[ziaulislam]

We need at least 100 Billion $. In order to compete and overwhelm our enemy, we need to step up our game in economics. Only then we can get rid of financial blackmailing and can induct some super new toys.

This can only happen if rupee is kept independent ..

What happen last year was by artificially subsidizing rupee we created a disaster

Ishaq dar called the whole world and told them he is ready to buy a worth 10 rupee pen at 100rs..result all people brought in pens and sold them to him..and earn 90rs profit..this is what happens when you artificially create value for something which isnt there..i.e the Pakistani rupee at strength it was in 2016-2017

If you want rupee strong than either do tight fiscal policy (print less money ) or increase productivity

 

[ziaulislam]

These numbers mean nothing fix the tax system and train system & water issue

True...saving has to go up, black market and real state money laundering has to stop and taxation has to improve

I would give govt 2-3 years but if its unable to increase direct taxes by at least 600-800b it will mean that the govt has failed
Taxation has to hit 15% of gdp without targeting industry and indirect taxes ..
Retail sector and private sector has to be targeted

Lack of saving due to artificially low interest meant that govt simply gave no space for private borrowing destroying thw economy in the process

 

[HttpError]

This can only happen of rupee is kept independent ..

What happen last year was by artificially subsidizing rupee was a disaster

Ishaq dar called the whole world and told them he is ready to buy a worth 10 rupee pen at 100rs..result all people brought in pens and sold them...and earn 90rs profit..this is what happens when you artificially create value for something which isnt there..

If you want rupee strong than either do tight fiscal policy (print less money ) or increase productivity

For all his economic policies Dar should be tried for treason. I wonder who appointed that dumb-*** to be our finance minister. No wonder their policies literally destroyed our economy.

 

[Awan68]

True...saving has to go up, black market and real state money laundering has to stop and taxation has to improve

I would give govt 2-3 years but if its unable to increase direct taxes by at least 600-800b it will mean that the govt has failed
Taxation has to hit 15% of gdp without targeting industry and indirect taxes ..
Retail sector and private sector has to be targeted

Lack of saving due to artificially low interest meant that govt simply gave no space for private borrowing destroying thw economy in the process

How much total revenue is earned by the govt as of now per anum, any idea?

 

[ziaulislam]

For all his economic policies Dar should be tried for treason. I wonder who appointed that dumb-*** to be our finance minister. No wonder their policies literally destroyed our economy.

He was resisted by the beuarcracy but he ultimately fired eveeyone the NBP, State bank and several other institutions heads were forced to resign so he can keep doing his disaster ...i wont be surprised if he turns out to be a shape shifiting indian

 

[Jinn Baba]

Thank God for that. I was worried that with the recent conflict, the reserves may have dwindled.

Chalo, now that theres some money in the bank, let's go for Surgical Strike 2.0

 

[ziaulislam]

How much total revenue is earned by the govt as of now per anum, any idea?

55.7 trillion rupees..
Taxes around 40t rillion
60% taxes go to provinces (around 25t)
Rest 25-30t are left with center

Center pays 20t in loans return 13-14t in military +pensions..thus starting with -6t budget(minus)
So govt borrow 5-6% of gdp(15t) to cover this deficit and development funds

This is called primary deficit(-6t) and has to be corrected

Provinces revenues are separate i am not aware of that value

Ruthless borrowing has caused a fiscal diasaster creating a puddle which current govt is stuck in

Its unporportional growth

We need a private sector driven growth not motorways-metros driven growth

So primary deficit fiscal deficit and Current account deficit is three headed hydra that PTI is fighting

 

[Awan68]

55.7 trillion rupees..
Taxes around 40t rillion
60% taxes go to provinces (around 25t)
Rest 25-30t are left with center

Center pays 20t in loans return 13-14t in military +pensions..thus starting with -6t budget(minus)
So govt borrow 5-6% of gdp(15t) to cover this deficit and development funds

This is called primary deficit(-6t) and has to be corrected

Provinces revenues are separate i am not aware of that value

Ruthless borrowing has caused a fiscal diasaster creating a puddle which current govt is stuck in

Its unporportional growth

We need a private sector driven growth not motorways-metros driven growth

18th amendment really fcked us, anyways correcting that mistake will require a govt with simple majority so we have to wait 4 yrs for that. For the time bieng tax net needed to be widened like yesterday. Pakistans tax potential is huge.