Foreign exchange reserves all-time high at $20 billion
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ISLAMABAD: Pakistan’s foreign exchange reserves have crossed an all time high mark of US $20 billion on Thursday, said a statement issued here.
According to details, the reserves includes $15.24 billion that are with the State Bank of Pakistan (SBP) while another $4.83 billion are held by the commercial banks.
Finance Minister Ishaq Dar in a statement said that the level of foreign exchange reserves is a manifestation of the stability in the national economy that has been achieved due to the deep-rooted and comprehensive economic policies and reforms undertaken by the present government during the last two years.
He said all the international donor agencies as well as rating agencies now hold Pakistan’s economy positively. “We are now working for sustainable and inclusive growth, consolidation of the economic gains and employment generation,” he added.
Moreover, Prime Minister Nawaz Sharif congratulated the finance minister on this achievement.
Know more: Foreign exchange reserves near all-time high
Currency experts believe that higher reserves, particularly of the State Bank, help stabilise the exchange rate. Low SBP reserves attract speculation which directly hits the local currency, as witnessed in the recent past.
Read more
On DawnNews
Comments (70) Closed
Oct 01, 2015 08:24pm
Still a long way to go but a good development. A reserve of 20 billion equates to around 1 Billion US Dollars per 10 million ( 1 Crore ) population and that average is lower than most of the countries of the world.
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Oct 01, 2015 08:25pm
They crossed these record levels after taking record DEBT from around the world. Most of this money is going to service the debt plus the fact that their trade deficit stands at a RECORD $22B...Please stop playing smart with us.
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Oct 01, 2015 08:34pm
@FAHAD Kindly do not lie. Your statement that our trade deficit is at 22 Billion USD is a plain lie. Our trade deficit is less than 2.5 billion USD for your inf0rmation and that is a positive sign as well. Also debt-GDP ratio is infact going down compared to the past.
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Oct 01, 2015 08:35pm
When present govt. take oath in 2013 reserves were at 5 bn and in these 2.5 years govt Barrow some 4.5 bn from IMF this shows these reserves are not build up only due to Barrow money some other good works are also done by this govt that why reserves are all time high.
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Oct 01, 2015 08:35pm
Bangladesh current Foreign exchange reserves approx. $27 billion.
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Oct 01, 2015 08:35pm
Go Greens Go
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Oct 01, 2015 08:36pm
After adding the recent IMF release..? ok
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Oct 01, 2015 08:37pm
@FAHAD
Well said.
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Oct 01, 2015 08:39pm
just for the record, India's reserve are around $350 bn, and the yearly change is equal to Pakistan's total reserves.
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Oct 01, 2015 08:40pm
@FAHAD 22 Billion deficit?. It stands at 2.2 billion according to my info. From where you Are quoting.?
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Oct 01, 2015 08:46pm
All borrowed money on high interest rates , if all these forex are from exports earning than it would be laudable.
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Oct 01, 2015 09:01pm
So after taking loans like beggars from foreign nations and banks you are praising yourself? wow, what a stupidity. Ugly part of this whole ordeal is that people will actually believe you.
When you stop taking loans and strength your internal economic then only we will achieve goodness.
How long do you think this will last you...as soon as you start to pay back those loans the banks will start to empty out and i am sure your return policy begins after the votes hence you can blame on the new government.
Thank You
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Oct 01, 2015 09:01pm
If you do not have 15 to 20 billion dollars coming from overseas Pakistanis every year, what will be your reserves?
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Oct 01, 2015 09:07pm
@FAHAD Our trade deficit comes down around 5% in previous 2 months please remain in touch with news.
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Oct 01, 2015 09:16pm
Finance Minister was very accurate in his estimations. The FER always reached the level he predicted. Let us see if he also achieves the projected growth rate of 6 % in GDP by 2016. A lot depends on the completion of energy projects and particularly the hydel power projects which will the cheaper source. The cheaper electricity and lower prices of agricultural and industrial inputs will improve the competitiveness of the economy and enhance of exports. The role of CPEC will also be highly significant in future.
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Oct 01, 2015 09:22pm
To clear out existing debts, he is taking new debts instead of using foreign exchange reserves. No wonder reserves are staying constant. But pakistan is in for a nasty surprise financial-wise in a decade because of the old and mounting new debts.
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Oct 01, 2015 09:23pm
Only 20 billion dollars.
This is nothing infront of what our dear PM Mian Nawaz Sharif and former President Asif Zardari have. Right PML-N and PPP?
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Oct 01, 2015 09:24pm
Indias richest business man Mukesh Ambani personal worth is $23.6billion which is more than pakistans reserves.....
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Oct 01, 2015 09:28pm
@M. Emad Bangladesh is not bordering Afghanistan to ward off Indian supported terrorists. It costs money.
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Oct 01, 2015 09:28pm
@M. Emad No doubt Bangladesh is doing really good...congrats, specially in finished textiles and garments. Pakistan need to catch up on the growth curve, a 6% GDP growth has to be achieved in 2 year time by Pakistan.
If you look at the economy of Pakistan and Bangladesh, Pakistan GDP is still 70%-80% higher than Bangladesh in PPP terms. In nominal GDP it is 280 billion USD for Pakistan and 208 billion USD for Bangladesh.
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Oct 01, 2015 09:35pm
@Glowing Pakistan deficit is quoted annually so Fahad is right in my view. Deficit is in the region of 20 bn
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Oct 01, 2015 09:39pm
Most of it is in Loans!!!!
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Oct 01, 2015 09:39pm
If you bring in the stashed money and property of Nawaz Sharif and Zardari, the FER can easily swell to 28 billion USD. Hope the establishment is thinking about it...doing the right thing now in combating corruption.
...and if Pakistan is able to bring in the money laundered and stashed in Swiss banks, it can write away, pay the total accumulated external debt of the country which is about 68 billion USD. Such simple statistics...
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Oct 01, 2015 09:43pm
@arnold yes we know...his home Antilia was worth about 1 billion USD, the most expensive house in the world...this is a moment of pride or to retrospect, by looking at the number of homeless people in Mumbai and in India. At night all the footpaths in Mumbai is occupied by homeless people, 62% lives in slums. Not a great gesture by Mukesh Ambani.
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Oct 01, 2015 09:45pm
@LAFANGA No, if that was the case then BAN has boundary with India. Corruption is main problem. Every leader in PAK try to loot as much as then can before their tenure ends. Check total properties of all politicians, I am sure that would be few times of total foreign reserve.
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Oct 01, 2015 09:56pm
@arnold 23.6 billion is his net worth, the equity of all the companies he owned, his personal wealth is about 4.5 billion USD. Google search a few sites you will know.
Bahria Town equity is Pakistan is also worth about 20 billion USD, one of the highest here in Pakistan, into real Estate.
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Oct 01, 2015 10:02pm
Dar Sahib how much you made in the process, with transactions like 8.5% borrowing from outside?
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Oct 01, 2015 10:02pm
" the level of foreign exchange reserves is a manifestation of the stability in the national economy that has been achieved due to the deep-rooted and comprehensive economic policies and reforms undertaken by the PML (N) govt, FM said". You are right minister saheb, you can multiply it by more borrowing and by isuuing bonds yielding 15% and above
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Oct 01, 2015 10:05pm
@Rao
Rao Sahib do you know what is trade deficit, it is 22 billion and not 2.5 billion...
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Oct 01, 2015 10:11pm
@Maxx so, he should spend all money and live in slums? Try to Google rich people of Pakistan... We will come across the names of ur Pm and ex President
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Oct 01, 2015 10:21pm
@Maxx Not everyone is Mother Teresa. What have you done for poor BTW??
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Oct 01, 2015 10:29pm
No credit to the govt. or anything to be happy about. All because Pakistan's begging and the number of foreign loans have increased.
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Oct 01, 2015 10:37pm
@Amit Nagori, this news is about Pakistan, so no need to brag about India's reserve here. There are many country which reserves are higher than India.
We need to show maturity when we are on an international media.
An Indian
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Oct 01, 2015 10:40pm
@Rao Check your sources and than come back with facts. The fact is that there is a 21% increase in Pakistan's debt in last 2 years. Sharif are making billions by borrowing for projects and we have higher reserves. Every Pakistani is under 91k debt, and the rulers are building palaces outside Pakistan. Common man does not have money to eat or drink water and wear clothes, but of course we need more motorways to drive on and metros and other wasteful projects to make money from.
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Oct 01, 2015 10:40pm
Looking at the Big Picture; Assets and Liabilities, Income and Expenses. If you keep adding loans as a means of growing reserves, adding no value to the economy, Mr Dar, You have financially bankrupted the economy with scams like KASB Bank, NandiPur, Metro's and list goes on.
Where are the "living Economists" of this nation? Not coming forward to challenge this nonsense.
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Oct 01, 2015 10:41pm
Darlistic rigmarole of twisted numbers!
What is there to be proud of $20 billion when a country like Nigeria holds over $30 billion despite losing drastically in its oil export revenues due to sharp decline in oil prices? Even remittances from Nigerian workers abroad are over $21 billion against Pakistan's 14 billion!
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Oct 01, 2015 10:42pm
Will the minister of Finance identify as to who bought the recently floated $5oo.oo M bonds which were sold so quickly and which carry an high interest of around 8.35.
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Oct 01, 2015 10:43pm
@M. Emad Bangladesh not fighting a war with foreign funded extremists, or fighting on the Loc. These have an impact, believe it or not.
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Oct 01, 2015 10:44pm
@ Hasan probably not one of ours, but across the border, if you know what I mean.
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Oct 01, 2015 10:49pm
Asset (Foreign Exchange Reserves) Debt:
Liability (Euro-bond loan) Credit
Hurrah it's '20! What a Accountant!
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Oct 01, 2015 10:49pm
@FAHAD
Do you know that loans are a necessary evil? Tell me, how would YOU shore up our reserves? Or do you foolishly think reserves aren't not important?
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Oct 01, 2015 10:51pm
I can visualize all politicians salivating whether in power or opposition. They have their eyes on elections in 2 years and the pot of gold.
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Oct 01, 2015 10:53pm
Can they tell us why we are still begging for money from the IMF?
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Oct 01, 2015 10:55pm
The increase in reserves should matched with increase in external debt which is increasing at a much higher rate. Nobody should or be given a credit as Pakistan is living on borrowed money. Many institution are more than willing to invest in Pakistani papers at a rate which will be not sustainable in the longer terms
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Oct 01, 2015 11:26pm
Thank goodness for cheap oil. This rising tide is lifting all boats.
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Oct 01, 2015 11:29pm
All of those who think its bad to borrow money kindly check the debt of US China and japan and the debt ratio 2 GDP.That will give you a better understanding.We are going in the right direction.But the gov needs to do more on tax reforms.
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Oct 01, 2015 11:29pm
@ Hasan @Rao hi, perhaps this is what FAHAD is refering to http://www.dawn.com/news/1194964
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Oct 01, 2015 11:42pm
Reserves all time high - debt all time high. Debt makes reserves - creative accounting by an accountant minister at it's best
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Oct 01, 2015 11:47pm
This is great news. Keep up the good work!
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Oct 01, 2015 11:54pm
Did they count in the their own empires of UK and UAE?
More than half of us are fool and celebrating reserves on the basis of expensive borrowing of 8.5% whereas country like Greece who is the on verge to default is just paying maximum 5%.
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Oct 02, 2015 12:43am
Sir, I do not know what this stupid is exp0ecting from Nawaz. Who keeps on selling the country and borrowing unlimited amount of money from every country. Every body, who is associated with Nawaz with un limited money paid to him.
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Oct 02, 2015 12:47am
@M. Emad
Bangladesh does not need to compare itself to Pakistan. For one thing, it does not have to deal with the mess created by India and Afghanistan in Pakistan. Secondly is there even a comparison.
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Oct 02, 2015 12:49am
@FAHAD you are right, but a common citizen would not understand that. They are fooling the people.
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Oct 02, 2015 02:05am
oh.. God its very poor . Need lots of work to improve it.
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Oct 02, 2015 02:37am
I don't know the cost of borrowing of these reserves defiantly these reserves are not from exports and foreign remittance. But this is the only achievement of Nawaz government
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Oct 02, 2015 02:59am
These are definitely not the highest ever forex reserves. These numbers include commercial bank holdings as well and no country in the world counts those as part of the official reserves. Even Pakistan did not count them before this administration came into power. During Musharraf's reign the official reserves at the SBP alone were $18bn.
@Rao
@Hasan
You two need to learn the difference between trade deficit and current account deficit. Fahad is right!
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Oct 02, 2015 03:07am
Bring back Zardari to run Pakistan's economy.
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Oct 02, 2015 03:22am
@Maxx .... Bill Gates and Warren Buffet have been giving away 43 billion dollars of their personal fortunes to international charities through the Bill and Linda Gates Foundation.
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Oct 02, 2015 03:31am
I see a lot of posts questioning the trade deficit number. As per Dawn article below, trade deficit is around US $22 billion.
http://www.dawn.com/news/1194964
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Oct 02, 2015 03:35am
Against the rosy picture being portrayed one needs to look at the foreign debt situation which increased to USD 65.147 Billion by the end of the second quarter of 2015. And equally important is the local currency borrowing of the Government. A few weeks ago it was reported in the press (Dawn, September 28th) that through the State Bank the Government is pumping money into the banks then borrowing it back from the banks in the form of debt creating a triangle, letting the government effectively bypass a limit placed by the IMF on direct borrowing from the State Bank. The Governments local borrowing has increased to Rs. 5.66 Trillion With the Government's coffers still empty, how will the Government pay back this debt? The 500M Euro Dollar Bond that was sold recently @ 8.25% pa (when effective rates in US$ are in negative territory) was to pay off a debt of like sum contracted in 2006 which is now due for payment. A financial melt-down awaits.
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Oct 02, 2015 04:12am
What an accomplishment after sixty seven years Pakistan has made to 20billion in reserve for 200million people and jingoism lives on
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Oct 02, 2015 05:39am
Has Pakistan enough power and the industries running? If Pakistan's Foreign Exchange reserves have crossed all time high mark of US $20 billion it is because of IMF and Pakistani Expatriates.
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Oct 02, 2015 05:44am
Isshaque Daarc is known for manipulating figures. During Musharraf's regime he submitted manipulated figures to the IMF which were detected as a result Pakistan had to pay a heavy fine.
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Oct 02, 2015 06:13am
If foreign reserves reached to 20 billion dollars why we are still buying dollars in 104 PKR....during President Musharaf era I remember it was 10 billion dollar and dollar was available in 57 to 60 PKR
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Oct 02, 2015 07:11am
World is now listening to us, coming to us. Pakistan back on track. To all my Indian FRIENDS who keep comparing Governments with Private businesses/individuals, only one Pakistani individual donated US$2 billions in charity, do you have any example of this sort in India ! Pakistan has the highest private charity to GDP ratio in the world !
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Oct 02, 2015 07:19am
@MAlvi , is it not a fact for most poor countries?
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Oct 02, 2015 08:24am
Mr. Ishaq Dar has built up FE reserves based on loans. So to call it strength is a joke with the nation. Can Dar disclose who is is the beneficiary of Eurobond issue of USD 500 million at an exhorbitant interest rate of 8.25 %?
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Oct 02, 2015 11:14am
"Foreign exchange reserves all-time high at $20 billion"
And Dollar exchange rates are all time high in the history of Pakistan.
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Oct 02, 2015 02:43pm
Euro bonds made it $ 20 billions not the exports of Pakistan. Pakistani nation will have to face the crisis in coming 10 year while paying the interest in dollars and then the principal amount. Such an ineligible govt. we have
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Oct 02, 2015 04:10pm
@Truth good
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