Deputy Secretary Information PTI says we are going to back to 2017-2018.

[Desprado]

You did not burn billions for supporting artificial currency.

Your reserves got stable instead of falling like a pack of cards.

Avoided a definite bankruptcy and a fate like Zimbabwe or Lebanon.

For just starters.

There is no advantage of reserve if are you borrowing massively and currency is unstable. It will only results in more outflows like Imports are witnessing and people stop investing in PKR result less FDI, Secondary investment and less export and more import. At one time, lenders will stop giving you because your credit card balance will be full than you start paying from the reserve, which will be empty within 3 to 4 months. Nigeria, Turkey, Ethiopia , Sri Lanka did the experiment of saving reserve and it fall flat.

Only earned inflows saves disaster ,which PTI doing worse than PMLN.

I repeat my question, where is the source for your claim?

SBP has clearly said no intervention.

You sure that was not for interest payment?

No because we paid 80 million dollar SCRA account (https://jsbl.com/personal/accounts/current-accounts/special-convertible/) due to massive outflows from PSX, FDI and Secondary investment.

 

[Patriot forever]

There is no advantage of reserve if are you borrowing massively and currency is unstable. It will only results in more outflows like Imports are witnessing and people stop investing in PKR result less FDI, Secondary investment and less export and more import. At one time, lenders will stop giving you because your credit card balance will be full than you start paying from the reserve, which will be empty within 3 to 4 months. Nigeria, Turkey, Ethiopia , Sri Lanka did the experiment of saving reserve and it fall flat.

Only earned inflows saves disaster ,which PTI doing worse than PMLN.

I asked you for the source for your claim $580m CAD financig through reserves.

Either provide a source of shut your trap. Instead of propaganda.

 

[PAKISTANFOREVER]

I asked you for the source for your claim $580m CAD financig through reserves.

Either provide a source of shut your trap. Instead of propaganda.

Cut him some slack. He is "Desperado" after all.

 

[Hareeb]

Rupee devalued to support higher CAD due to an increase in value of imports because of disruptions in global supply chain and increase in commodity prices i.e. oil and steel.
Depreciation of Rupee is meant to discourage imports- imports become expensive and should bring down CAD.
Well, can't blame finance ministry for higher global prices of commodities, but they should pass prices down to consumer rather than bearing costs in the name of subsidies.
Secondly, how is FBR going to meet its tax collection target of 600B+ from levy on petroleum products when PM doesn't allow them to increase prices? Already, tax to GDP of 11% is lowest in the region. Current expansionary fiscal and expansionary monetary policies are not going to help - govt will soon run out of its revenue and fiscal deficit will increase along already blooming CAD.

 

[blueazure]

There is no advantage of reserve if are you borrowing massively and currency is unstable. It will only results in more outflows like Imports are witnessing and people stop investing in PKR result less FDI, Secondary investment and less export and more import. At one time, lenders will stop giving you because your credit card balance will be full than you start paying from the reserve, which will be empty within 3 to 4 months. Nigeria, Turkey, Ethiopia , Sri Lanka did the experiment of saving reserve and it fall flat.

Only earned inflows saves disaster ,which PTI doing worse than PMLN.

Most of our reserves are liabilities vs equity...

For a layman, our reserves are also borrowed monies from china, s Arabia , UAE.

Catch 22 situation here really

Falling currency, borrowed reserves.

Rather weirdly, pti fin min and sbp are both quiet

 

[Desprado]

I asked you for the source for your claim $580m CAD financig through reserves.

Either provide a source of shut your trap. Instead of propaganda.

I am not doing propaganda. I We did 580 million dollar CAD loan to fill the gaps. I told everyone here that devaluation or saving reserve wont save Pakistan. I did tell PTI wasted Pakistan time on that devaluation helps to Pakistan export and decrease imports neither one thing happened. This lollipop will also fall flat when IMF ask us to pay their 7.8 billion dollar liability due premautrely ending IMF program just like they asked in 2009.

I am not saying this Ministry said it

"The Ministry of Finance on Saturday warned of potential risks to Pakistan’s economy and stated that an increase in international commodity prices could build pressure on a country’s domestic inflation as well as on the Balance of Payments (BoPs)."

Monthly Economic Indicator: Finance Ministry warns of potential risks to Pak economy

ISLAMABAD: The Ministry of Finance on Saturday warned of potential risks to Pakistan’s economy and stated that an increase in international commodity prices could build pressure on a...

www.thenews.com.pk

"It is expected that trade deficit in goods and services could stabilise to approximately $3 billion in August, said the ministry. The current account deficit is expected to remain at manageable levels taking into account the monthly average of remittances flows around $2.5 billion and other secondary and primary income flows." Ministry of Finance. It was false and they their data is forged just like Shukat Tarin did in 2009 and botched IMF program and runway. Hafeez saved Pakistan at time and now he was booted because he saving Pakistan. Shaukat Tarin will make Pakistan default again and you people will say that At least Imran Khan is honest. Pakistan will face major crisis in October due Shaukat Tarin signed budget with IMF that we will not do more than 2.5 billion dollar CAD this FY.

Inflation likely to be over 9% | The Express Tribune

Monthly economic report predicts imports to clock-in at $5.5b in August

tribune.com.pk

I am telling Pakistan is 100% heading towards default we will have a bigger crisis in Ocotober than we witnessed in 2018.

 

[Patriot forever]

Most of our reserves are liabilities vs equity...

For a layman, our reserves are also borrowed monies from china, s Arabia , UAE.

Catch 22 situation here really

Falling currency, borrowed reserves.

Rather weirdly, pti fin min and sbp are both quiet

Nope bro that is not the complete picture. Direct state bank deposits have a downward trend, the actual claimed amount never materialised in full. Here is the figure from rating agency.

The actual usable reserves are at an upward trend.

"The American ratings agency estimated Pakistan’s requirement for foreign financing would stand fully covered for the next 12 months with inflows coming from multilateral and bilateral credit partners. More importantly, the amount of ‘usable’ foreign currency reserves rose to $14 billion at present compared to $2.4 billion two years ago in 2019."

S&P keeps outlook stable for Pakistan | The Express Tribune

Ratings agency sees country’s economy progressing, implementation of economic reforms

tribune.com.pk

I am not doing propaganda. I We did 580 million dollar CAD loan to fill the gaps. I told everyone here that devaluation or saving reserve wont save Pakistan. I did tell PTI wasted Pakistan time on that devaluation helps to Pakistan export and decrease imports neither one thing happened. This lollipop will also fall flat when IMF ask us to pay their 7.8 billion dollar liability due premautrely ending IMF program just like they asked in 2009.

I am not saying this Ministry said it

"The Ministry of Finance on Saturday warned of potential risks to Pakistan’s economy and stated that an increase in international commodity prices could build pressure on a country’s domestic inflation as well as on the Balance of Payments (BoPs)."

Monthly Economic Indicator: Finance Ministry warns of potential risks to Pak economy

ISLAMABAD: The Ministry of Finance on Saturday warned of potential risks to Pakistan’s economy and stated that an increase in international commodity prices could build pressure on a...

www.thenews.com.pk

"It is expected that trade deficit in goods and services could stabilise to approximately $3 billion in August, said the ministry. The current account deficit is expected to remain at manageable levels taking into account the monthly average of remittances flows around $2.5 billion and other secondary and primary income flows." Ministry of Finance. It was false and they their data is forged just like Shukat Tarin did in 2009 and botched IMF program and runway. Hafeez saved Pakistan at time and now he was booted because he saving Pakistan. Shaukat Tarin will make Pakistan default again and you people will say that At least Imran Khan is honest. Pakistan will face major crisis in October due Shaukat Tarin signed budget with IMF that we will not do more than 2.5 billion dollar CAD this FY.

Inflation likely to be over 9% | The Express Tribune

Monthly economic report predicts imports to clock-in at $5.5b in August

tribune.com.pk

I am telling Pakistan is 100% heading towards default we will bigger crisis in Ocotober than we witnessed in 2018.

Again you did not quite the source of your claim of $580m CAD financing via reserves?
Provide the source instead of blabbering.

As for this part. Thank you for elaborating the reason of our import increase.

"The Ministry of Finance on Saturday warned of potential risks to Pakistan’s economy and stated that an increase in international commodity prices could build pressure on a country’s domestic inflation as well as on the Balance of Payments (BoPs)."


Now stop with the bullshit.

 

[Desprado]

Nope bro that is not the complete picture. Direct state bank deposits have a downward trend, the actual claimed amount never materialised in full. Here is the figure from rating agency.

The actual usable reserves are at an upward trend.

"The American ratings agency estimated Pakistan’s requirement for foreign financing would stand fully covered for the next 12 months with inflows coming from multilateral and bilateral credit partners. More importantly, the amount of ‘usable’ foreign currency reserves rose to $14 billion at present compared to $2.4 billion two years ago in 2019."

S&P keeps outlook stable for Pakistan | The Express Tribune

Ratings agency sees country’s economy progressing, implementation of economic reforms

tribune.com.pk

No.

1) 4 billion China Safe Deposit cannot use even 1 like Term deposit.

2) 2 Billion dollar UAE and 1 BIllion KSA safe deposit

3) 5 billion dollar swap, which is other countries and 6 months is the expiry period.

4) 7.8 billion dollar IMF liabilities because we have to do IMF program fully to avail this otherwise we have to pay this within 6 months of ending IMF program prematurly. So you should thankyou Shaukat for default Pakistan, which not opposition could have done and he did in just 3 months. He took 1 years of PPP to default Pakistan but he took only 3 months in full of angle and Masamom, Honest and Imandar government.

 

[313ghazi]

Could we not just stop importing stuff?

 

[Desprado]

Could we not just stop importing stuff?

Yes to save Pakistan. It is a pressure on Imran Khan because failed to control inflation in Pakistan since 3 years.

Pakistan witness highest inflation in Covid period just behind Iran and even not beating a default country Sri Lanka ,which only hard 2.6 billion dollar reserve and they had to pay 5 billion of debt in 6 months. Imran Khan is the worst administrator Pakistan ever witnessed. He is good at talking only but zero at ground level.

 

[Norwegian]

so your'e ok with hyper inflation ? mass poverty ? social unrest ?

When you default after losing all reserves, you get hyper inflation anyway. It's thus better to have inflation but keep reserves.

 

[Patriot forever]

No.

1) 4 billion China Safe Deposit cannot use even 1 like Term deposit.

2) 2 Billion dollar UAE and 1 BIllion KSA safe deposit

3) 5 billion dollar swap, which is other countries and 6 months is the expiry period.

4) 7.8 billion dollar IMF liabilities because we have to do IMF program fully to avail this otherwise we have to pay this within 6 months of ending IMF program prematurly. So you should thankyou Shaukat for default Pakistan, which not opposition could have done and he did in just 3 months. He took 1 years of PPP to default Pakistan but he took only 3 months in full of angle and Masamom, Honest and Imandar government.

You deny S&P an international and reputed global rating agency and want us to believe your bullshit.

The cummulative central bank deposits from all these countries are just $2.7b as published by the SBP on June 31st 2021.

 

[Desprado]

When you default after losing all reserves, you get hyper inflation anyway. It's thus better to have inflation but keep reserves.

The whole purpose of the reserve is stop manipulation or speculation attacks and if that purpose is gone that reserve will wanish anyway because people not deal in PKR like Zimbawe and only will be dealing dollars. So dollar will wiped out in days not months from the reserve.

 

[Norwegian]

It is better get defaulted like Sri Lanka than PTI experiments at least it would Pakistan to debts when Pakistan stands on feet.

Pakistan is going to IMF every 5 years following artificial stable currency exchange. This strategy of standing on its own feet is clearly not working.

 

[Mav3rick]

So you think wasting billions on making okr artificially high is a smart idea? Do you know what happened to other countries that did that?/QUOTE]

And do you know what happens when the currency continues to depreciate, that too artificially because people are hoarding USD and other foreign currencies in anticipation of PKR hitting 200? Any idea what happens to the buying power of common Pakistanis with this unchecked and artificial devaluation?

Where do you arrest the depreciation; or do you simply let market play it's role where people continue to buy foreign currency in anticipation of further devaluation which infact triggers further devaluation???