Country to achieve $20 billion forex reserves mark soon: Dar
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ISLAMABAD: Finance Minister Ishaq Dar said on Friday that Pakistan will achieve a forex reserve of $20 billion in the next few weeks. The finance minister made the announcement while addressing an Independence Day ceremony at Benazir Income Support Programme (BISP) headquarters.
“Our forex reserves are close to $19 billion, and we will achieve the mark of $20 billion in a few weeks,” said Dar.
“All international rating agencies now hold Pakistan’s economy in high esteem. Our economy is stable and now we are embarking on a journey towards growth and economic consolidation,” added Dar.
Read: Foreign exchange reserves near all-time high
The event was attended by a large number of BISP beneficiaries, diplomats, political personalities, government officials and representatives from national and international organisations.
While talking about BISP, the finance minister said, “I am pleased to see BISP flourish and become the largest social safety net in the country.”
“For the current fiscal year, we have increased BISP’s budget to Rs 102 billion, and have increased the monthly stipend to Rs 1800 which has benefited millions,” elaborated Dar.
“I have directed BISP’s management to make all payments through technology based mechanisms and today more than 94 per cent of the beneficiaries are receiving payments through debit cards, smart cards and mobile phones,” remarked Dar.
He also said that the present government had opened banks to the poor, and financial inclusion has been introduced. The minister also praised BISP’s management for making it an efficient and competent government organisation.
“I would also like to thank our development partners for their continued support and we hope to cooperate with them on all projects that are mutually beneficial,” said Dar while referring to various representatives of international organisations present at the ceremony.
Read more: Allocation for BISP to be increased: Dar
The finance minister also praised the leadership of Prime Minister Nawaz Sharif on the occasion.
Ishaq Dar also launched BISP Demographic Directory, which profiles beneficiary families based on their economic, social, educational and other dimensions. The directory would help BISP better disburse funds to beneficiaries and would assist in reaching the poorest sub-sections of the society.
Two major events have supported the central bank to improve its reserves. First, low oil prices in the international market helped the country save a substantial amount on account of import bill, and, second, remittances from overseas Pakistanis grew by 16pc year-on-year to $16.63bn during the 11 months through May.
Remittances are now more important than exports growth since the export sector has failed to achieve targets for the last many years despite incentives, including low interest rates on borrowing from banks.
Read more
On DawnNews
Comments (45) Closed
Aug 14, 2015 09:18pm
What is the point of having such huge reserves where the benefits are limited keeping the exhange rate arbitarily high exports are declining this man is just accountant who likes to see more in banks accounts rather than seeing the bigger picture he needs to learn economics
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Aug 14, 2015 09:18pm
Meaningful ONLY if this reserve is NET of foreign exchange debt and other obligations. THAT debt I imagine is several tens of billions of dollars more than the $20B 'reserve' this relative of the incumbent monarchs who have their grip on the country
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Aug 14, 2015 09:20pm
more loans hence higher forex
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Aug 14, 2015 09:25pm
Mr Dae. Please tell to the nation that this is all loan, not Foreign Direct Investment :)
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Aug 14, 2015 09:27pm
Now can you translate this to the poverty level in Pakistan?
How much of this will end up in yours, Shareef's and other PMLN foreign accounts?
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Aug 14, 2015 09:28pm
It's funny how they like to take credit for something that's not their doing: we save some $4 billion on oil and have managed to chuck a large chunk of our young people abroad who now send $16b that we use to print our cash against and tuck away the dollars and break the news with a grin.
The social lives of these people are a human tragedy, what do we do for them for running our country? They don't even get a say in who is to manage their money for their children when they return (if ever).
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Aug 14, 2015 09:29pm
Government increased taxes and now they have introduced with holding tax. Of course the reserve will increase with ever increasing taxes, foreign and internal debt. This figure of 20 billion dollar may appeal an accountant but for a common man this is not development.
Reduce the taxes so that people willingly pay taxes. Instead of keeping wealth in Reserve Bank give some relief to civilians.
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Aug 14, 2015 09:31pm
PML N is forging the real figures. They can sway pakistanis anymore
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Aug 14, 2015 09:33pm
There is no doubt that low oil prices are good. Low oil prices have an adverse effect also. There will be less revenue for the Gulf countries resulting in less remittance by the expatriates. Instead of over depending on foreign remittance, Dar needs to give priority for exports.
R.S. Menon, Bangalore
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Aug 14, 2015 09:42pm
With the help of CSF ( coalition support fund ) which is not going to be available from next year. Half truth is basically a lie Mr. Daar!
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Aug 14, 2015 10:02pm
This is way fewer than you politicians stole from PAK reserve....
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Aug 14, 2015 10:17pm
First let the public know the Actual, Correct and True figures of overall Debts; National and International that Pakistan as a Country and a Nation has to repay!
Then, let the public know the Actual, Correct and True figures of such debts, during each term of PML-N's Government till the time of PML-N's ouster!
Then, let the public know all about the generous contribution of 1.35 billion made by the Kingdom of Saudi Arabia.
There are many more such heads of accounts requiring clarification from Government Ministers, but than knowing fully well that, none of our public servants ever consider it their Moral and Legal duty to respond to public queries made through News Paper comments, their clarification to these few would be a great service to the Pakistani Nation.
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Aug 14, 2015 10:22pm
Increase in Foreign exchange means you have coushion to sustain imports and Repayment of foreign loan and interest in time . it also show health of economy and less volatility in exchange rate . However declining export is a global phenomina may be some correction in rate can make export competative ?
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Aug 14, 2015 10:25pm
Too much negativity in the above comments. I am pretty sure that if Musharraf or Imran Khan will be doing that then so called liberals of Pakistan will be appreciating. Musharraf was increasing the reserves through Coalition Support funds but everyone appreciated him. PMLN government got the government in the worst fiscal state. Weather someone like it or not but PMLN have achieved the economic stability of our country. Now from now on we can focus on growth.
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Aug 14, 2015 10:39pm
two points
1. Most of the Reserves are Loans repayable at horrendous interest rates by successive generations of Pakistanis Debt to GDP ratio has far exceeded the max of 60 % limit prescribed under Musharraf's Fiscal Responsibility Act of Parliament
2. If BISP is for poor how come they will be disbursed by Smart carsd and mobile
phones and debit cards PPP and PMLN will use these to milk the 102 BN easily in the name of the poor !
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Aug 14, 2015 10:42pm
I am from Western world and here no body will give you even a single penny if your nation profile doesn't show the potential that they will earn more than loan. Your loan elegibility capacity shows your strong economy. US has trilltion dollars loan too, highest in entire world and also econimy is strongest. If you have 20 B in your accound you can attract 100 b of investment and invest it to make more money.
Cogtr Pakistan having good econimical indicator of high reserve.
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Aug 14, 2015 10:49pm
Bangladesh has already earned $26 billion 3 months ago and expecting more in next month as export and remittance is increasing on the loan repayment and taking new loan are reducing.
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Aug 14, 2015 10:55pm
Just a comparison of south asian countries with their of their forex in 2014,(In bracket- Corresponding Rank in the world.)
India-$353.4 Billion(Rank-9), Bangladesh-$25Billion (Rank-52),
Pakistan-$15.6 Billion(Rank-66), Srilanka-$8.3 Billion(Rank-77),
Afghanistan-$6.4 Billion(Rank-83).
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Aug 14, 2015 11:05pm
Mr. Dar, ok agreed, then what? What about exports, PKR competitiveness, PSEs fiscal hammorage, poverty, whose job is it???
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Aug 14, 2015 11:14pm
and dollar still remain at 103
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Aug 14, 2015 11:28pm
Everybody has pessimistic views. what about improved security/law & order situation in the country. Nobody looking at the good things but only criticism. that's our national agenda.
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Aug 14, 2015 11:41pm
@R.S. Menon But bro, what have we got to export? Rice, mangoes, lawn clothes? Our industrial production is negligible, our heavy engineering is virtually non existent.
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Aug 14, 2015 11:48pm
Last sentence of the news item "Remittances are now more important than exports growth since the export sector has failed to achieve targets for the last many years despite incentives, including low interest rates on borrowing from banks."
What Dar has done for the economy? And also why non-resident Pakistanis savings in Pakistani banks are being taxed @ 0.6%. If Dar any sense about economy then he would try to improve fundamentals insteaf of the gimmickry as evident from govt. policies!
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Aug 14, 2015 11:49pm
as an educated citizen of pakistan i need to know financial details of dar and family. how he was able yo setup all business and buildings in dubai. from where money came. what was his source is he rich from inheritance or took loan....need answers!
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Aug 15, 2015 12:42am
The following says it all:
"Remittances are now more important than exports growth since the export sector has failed to achieve targets"
M. Dar should resign and hand over Finance to some one more qualified.
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Aug 15, 2015 01:11am
can we not invest half of that in infrastructure? Trains, clean water to all and electricity?
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Aug 15, 2015 01:18am
@Awan Just because PMLn is from Punjab doesn't mean we are going to give them any easy time and believe whatever they say. As some fellow pointed out that debt to Gdp ratio has crossed 60% threshold, exports are declining, dollar at 103 (touched 113 once), textile sector closing their mills etc etc so where is the positive thing in current pakistan's economy that we start thinking positively?
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Aug 15, 2015 01:38am
This does not take into account the fact that most of the money which was sent abroad comes back as white money in the form of remittances because of no-questions-asked policy.
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Aug 15, 2015 02:15am
Bring back your money and the money from Zardaris, Sharifs, Chaudhris and others and our reserves will go out the roof.
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Aug 15, 2015 02:33am
Good news. Remittances from exists are more important than exporters. Yet no say in national elections for us. Secondly I feel so sad that my countrymen see all negative saying senseless stuff like it is all loans? Another one says we should see this net of total foreign debt. Give the country and its govt credit where it is due. The previous goats could achieve that despite foreign debt.
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Aug 15, 2015 02:39am
that is a very good sign. The only negative i see in it is - that instead of Exports creating this largest Foreign Exchange Reserves (FER) - Overseas Pakistanis creating these - which is not a very healthy sign.
Govt should take advantage of this short-term bonanza (also contributing factor is Oil's low Import bill) and try to boost exports and help Small / Medium Business Sector - generate more FERs
Nonetheless - i congratulate the govt - on this achievement. Keep working on improving it
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Aug 15, 2015 02:44am
How much are loans by IMF and others? Piling up cash with loan is not a smart thing to do...
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Aug 15, 2015 03:23am
I can only say keep up the Good Work.
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Aug 15, 2015 03:27am
The target figures of foreign forex at $ 20 billion is way too less! If the people of Pakistan can form proper government then the black money transferred overseas through corruption will be brought back to Pakistan and the estimates are around few hundred billion dollars
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Aug 15, 2015 03:46am
Where did Dar get the money from to buy his dubai emirates hills mansion?
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Aug 15, 2015 03:50am
@farida exports never rose when forex rate slipped from 60 to 100.
When this rate rose to 110, self proclaimed economists were all out against the same government.
And remember loans are not charity. Try asking for a loan from a bank with nil bank balance and you will know the real worth of having a decent "bank balance".
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Aug 15, 2015 04:07am
Begging from IMF and world bank shame on you.
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Aug 15, 2015 04:22am
Well, more than 56% of these reserves are made of IMF loans.
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Aug 15, 2015 04:31am
This man can cook the books.
How much we borrowed from IMF, and the rest of the banks.
We owe more now, then when this government came in to power,
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Aug 15, 2015 05:00am
How about the record debt which the country is facing. Who is going to pay that back. Next generations?.
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Aug 15, 2015 05:11am
This is peanut as compared to economic terrorism committed by politicians
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Aug 15, 2015 05:24am
@mav jay its a sin to ask anything related to personal wealth of pmln ministers.keep quiet..
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Aug 15, 2015 05:41am
You should not count loans and funds as forex reserves. That's basic knowledge. Actual reserves are $13B.
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Aug 15, 2015 10:51am
Send illegally earned money abroad though illegal channels and and then remit it back to Pakistan as dollars.
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Aug 17, 2015 05:52am
Most of this forex is loans. What's the point? You can't take alms from people and say you are rich.
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