Pakistan's Forex Reserves decrease by $322-mn to stand at $7.2-bn

[Zapper]

Reserves held by the State Bank of Pakistan (SBP) fell by $322 million to $7.28 billion on the week ended June 21, said the bank in a notice issued on Thursday.

Of the total reserves in the country, the ratio of holdings with central bank and commercial banks has fallen to 51:49 per cent compared to 60:40pc on Mar 29.

The rising level of foreign exchange reserves with the commercial banks’ — at $7.069bn as of June 21 — indicates the interest among investors to buy greenback as the rupee continues to depreciate.

The rupee has lost more than 42pc since May 2018.

However, reserves with the SBP are declining mainly on account of debt servicing that may rise to $10bn by the end of this fiscal year to meet the huge current account deficit.

With the fall of $5-6bn in the country’s import bill, the current account deficit is expected to stay at $13bn by the end of this fiscal year compared to $19.9bn last year.

Currency dealers, who are reluctant to sell the greenback due to declining value of local currency, said that people want to buy dollars to save their reserves and get profits.

“Who will sell their dollars at this time while the price has been increasing every day,” asked a dealer in the open market.

https://www.dawn.com/news/1490896/sbp-reserves-dip-to-728bn

 

[Jf Thunder]

Economy of naya Pakistan seems to be on track

 

[Cobra Arbok]

Very bad and very very sad

 

[HttpError]

All hopes have been lost.... The problem is only average Pakistanis are going to face this heat and people who are/were responsible are living freely. There is no accountability, roadmap or remedy. I invested a lot of my personal savings and due to this devaluation, it has been shrunk to 40%. Now I have one question? what other motivation should I have besides being a nationalist for not investing in other foreign currencies?

 

[PakGuns]

lolz,,,, chill up guys you ll see economy bounce back soon, it happens at the end of financial year to make debt payments,,,

 

[Lincoln]

lolz,,,, chill up guys you ll see economy bounce back soon, it happens at the end of financial year to make debt payments,,,

Yes, at end of year, we will suddenly have a $100 billion in forex reserves. Lollzzzx,,,,,,,,,,,,,,,,,,,,,,,,

 

[maithil]

Time to be selfish. Think about your family. Invest wisely in gold and forex. People have elected IK to look after national interest. Time to focus on yourself.

 

[maithil]

I said the same on this forum. People labelled me as the cause of Pakistan problem. Look at for yourself because pakistan will not improve, it'll only get worse.

It's very easy to label others on internet. Time has come for every sane person to become selfish. There is no other way to survive.

 

[Yaseen1]

i think govt should shut down state bank who has gone in control of imf and foreign powers .It will be better for Pakistan and we should ask china to manage statebank to reduce imf influence over it.ik should fire statebank governor who is playing in our enemies hands

 

[Pandora]

i think govt should shut down state bank who has gone in control of imf and foreign powers .It will be better for Pakistan and we should ask china to manage statebank to reduce imf influence over it.ik should fire statebank governor who is playing in our enemies hands

Maybe WE should hand over the control to Khadim Razi the economist who once said Assi paisay lawan gay jadoon o mangan asan assi akhsaan jadu sadi marzi hue tay taan daisaan jo karna vay kar lo . Janab IMF doesnt even want to give you a bail out mainly bcz our economy is fucked to a point where even IMF is reluctant. Only option is to fix your economy through some unpopular and harsh measures. Phir yahan loag bongiyaan martay hein we gave control to IMF bhai IMF kyn lay ga tumari thaki hue economy ka control unko kya faida hai? If theY needed to seize control then they would easily let you get bankrupt and then takeover.

 

[Yaseen1]

they are doing it slowly ,if you look at u.s military build up in region against iran and look our economic conditions becoming bad at same time it shows they want to cripple our economy to the point that we are unable to fight and protect our country in any conflict with india and terrorists attacks which will increase after iran become destabilized .We are not fixing our economy but making it more worst everyday and it seems govt came in trap of imf which is laid down by israel and u.s

Maybe WE should hand over the control to Khadim Razi the economist who once said Assi paisay lawan gay jadoon o mangan asan assi akhsaan jadu sadi marzi hue tay taan daisaan jo karna vay kar lo . Janab IMF doesnt even want to give you a bail out mainly bcz our economy is fucked to a point where even IMF is reluctant. Only option is to fix your economy through some unpopular and harsh measures. Phir yahan loag bongiyaan martay hein we gave control to IMF bhai IMF kyn lay ga tumari thaki hue economy ka control unko kya faida hai? If theY needed to seize control then they would easily let you get bankrupt and then takeover.

 

[Pandora]

they are doing it slowly ,if you look at u.s military build up in region against iran and look our economic conditions becoming bad at same time it shows they want to cripple our economy to the point that we are unable to fight and protect our country in any conflict with india and terrorists attacks which will increase after iran become destabilized .We are not fixing our economy but making it more worst everyday and it seems govt came in trap of imf which is laid down by israel and u.s

Dude is there an alternative to what currently being done by present government? Janab IK government avoided a massive debt trap to best of its ability. When IK took over it was being said that Pakistan needs a bailout package of 15$ billions but due to efforts by current government we are only opting for a 6 billion bailout package. Your current account deficit stood at 18 billion at the end of Nawaz rule which came down to 12 billion during current financial year. This meant pakistan had only 12 billion financing requirement. Half of this requirement was met by loans and deposits from friendly countries rest we needed IMF. Pakistan made 9 billions dollars repayments on debt servicing and loans returned to various lenders. Considering what pakistan's financial situation PTI government did exceptionally well.

 

[Yaseen1]

Dude is there an alternative to what currently being done by present government? Janab IK government avoided a massive debt trap to best of its ability. When IK took over it was being said that Pakistan needs a bailout package of 15$ billions but due to efforts by current government we are only opting for a 6 billion bailout package. Your current account deficit stood at 18 billion at the end of Nawaz rule which came down to 12 billion during current financial year. This meant pakistan had only 12 billion financing requirement. Half of this requirement was met by loans and deposits from friendly countries rest we needed IMF. Pakistan made 9 billions dollars repayments on debt servicing and loans returned to various lenders. Considering what pakistan's financial situation PTI government did exceptionally well.

This is temporary in nature and is directly related to decrease in growth.Only they did well in electricity and circular debt control. The slow down of economy has put us 5yrs backward as more youth becomes unemployed and educational spending is decreased due to inflation many students will be unable to get higher education in good domestic and foreign universities so we will become more backwards in science and technology

 

[Pandora]

This is temporary in nature and is directly related to decrease in growth.Only they did well in electricity and circular debt control. The slow down of economy has put us 5yrs backward as more youth becomes unemployed and educational spending is decreased due to inflation many students will be unable to get higher education in good domestic and foreign universities so we will become more backwards in science and technology

You can easily achieve inflated and unreal growth by getting more loans just as they did in the past. What we have as our growth has been as such in real sense during past government as well. You can't keep accumulating debt without repairing micro and macro fractures within the economy. An unrealistic and artificially inflated growth will give you temporary relief but in long term you will come down even worse than what is happening right now. A low and sustainable growth is better than unsustainable growth reliant on debts. Janab Education budget is more than sufficient as far as central government is concerned btw education is primarily an provincial chapter so keep a look at provincial budget to access entire education budget.

 

[Yaseen1]

provinces are incapable for educational improvement kpk and punjab is under pti govt so federal govt is also of pti so they are directly responsible for these two provinces and Islamabad is under federal govt so it is better govt should take responsibility and improve miserable condition of F.G colleges in Islamabad and across the country.this govt has also taken loans but growth is in decline and it will hurt tax collection as businesses are incurring loss.When people earn more due to high growth they pay for their children education by their own without relying on govt so burden on govt decreases but when unemployment is high and dollar price rises higher education become out of reach from our middle class in good foreign universities and also introduction of new technology becomes more expensive in domestic universities.Due to decline in human capital in long run we will continue to take more loans as our productivity will become less and expenses of govt will become high due to devaluation and lack of tax revenue

You can easily achieve inflated and unreal growth by getting more loans just as they did in the past. What we have as our growth has been as such in real sense during past government as well. You can't keep accumulating debt without repairing micro and macro fractures within the economy. An unrealistic and artificially inflated growth will give you temporary relief but in long term you will come down even worse than what is happening right now. A low and sustainable growth is better than unsustainable growth reliant on debts. Janab Education budget is more than sufficient as far as central government is concerned btw education is primarily an provincial chapter so keep a look at provincial budget to access entire education budget.