1 billion we recieved already run out as SBP reserves falls in last month, lets see will this 1 billion use for its purpose or PTI simply waste thise money also.

Awesome

Its loan please dint use wrong eords like pti

How long an economy can be run by taking loans. Remember these are loans needs to pay back when mature.

The first billion was used up in about 20 days. How long will this last.

There is something which is not adding up. Today the reserves were 7.24$ billion and adding this 1b$ will shore reserves up to 8.24 b$. May be some secret loans also received and figure reached 9.4 billion.

The pre-election, slogan of the Government, to break the begging bowl, is not an easy one to accomplish. There is no money in the state coffers, and those who have looted and plundered the country in the past, have covered their tracks very well. At this time, what is needed, is wise long term financial planning. Let the accomplished, financial planners do their job. Both the state representatives as well as the opposition benches, need to stay away from cheap sensationalism. The future of Pakistan is at stake here.

@Philosopher (from Japan), You are asking the wrong question. You should be asking, 'Why do we even need to borrow, to service existing debt?' Because NS borrowed too much in the past and looted much of it. A debt that is due for repayment. So how does the country pay off the creditors from the past - if there is no other source of revenue?

New Loans to avoid default & pay interest on Old Loans So future Interest payments just went up with current interest payments being unaffordable. The country is insolvent and not creditworthy at this time.

One has to stands on its own feet. It is not wise to repay loan by taking fresh loan. Is this a matured economy? Government should come out with fresh economic activities to boost exports. No further loan please!

Is this the ' biggest' package that the finance minister was telling yesterday???

Let us be honest here: what do we think about a "friend" that keeps coming to our home every few months asking us for money -- what do we say about that friend? -- how many times do we welcome him nicely and lend him money, and then eventually stop opening the door for him?

What has actually happened to Pakistan's economy ? If previous governments are responsible for the meltdown, they should be held accountable and brought to books. Be careful while borrowing and make sure you have a plan on how to clear these loans.

Is this the greatest ever investment that asad Umar was boasting abt yesterday?

@Sanam Azami You have no understanding on how the economy works.

Imran Khan needs to give the country the account where these money will be spent and need to give the proof, otherwise greedy eyes on money will always be there.

New loans to payback old loans. How long will the sinking ship survive that is the question ?

The word 'financial assistance' is really great. How many countries can boast of getting billions as financial assistance..

will the one billion will be enough to curve the import and debt payment.

Congratulations Pakistan!! Great news. Something more in the eternal bowl. Great news. Now let’s just hope the money is out to good use.

A huge price to repay IK..

Never seen a country terming asking for and getting aid as being very successful!

@sanam azami, there is no shortage of uninformed public in Pakistan. As any Country, Pakistan has payable account and owes monies to several international trader plus has obligation of paying interest on the massive loan taken by previous excellent government of PMLN and PPP.

@bhaRAT© , Do you not understand the difference between "investment" and loan?

@citizen, - "How many countries can boast of getting billions as financial assistance.." Neither a loan not alms are worth boasting about.

Historic loan ? Now IK to come on TV and announce this achievement.

Sir, What are we offering them in return for such gracious bailout packages as off course there is no free lunch??. For how long this country with immense human resources and rich mineral resources will be run on bail out packages and IMF loans. Please make strong trade policy and work towards increasing exports. Thanks

@vivek, You should have paid some attention to reading english instaed of only Maths. The Figures you are quoting is as on December 7th. I hope now everything adds up.

@Atif, how?? By receiving bailout package??

@ malik, Its not loan. Its given to Pak govt for safe keeping for a year. It cannot be used for any other purpose other than to show in available balance. Thats it.

@Haider Javed there is no difference between PPP and PTI, even PTI is worse than PPP. repeating the same step, which you know wrong is not wise.

@ Taimur it seems only PTI workers only knows that how economy works, always comes with some excuse and blame previous govenments.

Majority of money received is being used to pay off debts. Pakistan is in debt trap.

Why we do not export COAL ?

It would not work

Create job opportunities asap rather receiving billions of dollars!

Bye..Bye IMF.

getting loans are an achievement and need a finance minister. Keep celebrating

Saudi has simply made a fixed deposit with SBP too keep exchange rate up. Calling it an Aid or a package is a false statement as neither is it a loan nor an aid/gift.

Excellent performance.... What to say !!!

Few months have already gone by since this government have been in power, but still there is no financial policy so far.

Why keep telling everyone. Just get on with it.

what about confiscating these corrupt elites properties. especially zardari and nawaz family.

Saudi royal family is not giving money for free that's for sure, what will they ask in return?

@bhaRAT© , why are u asking questions As well as answering them on your own?

This is likely a grant. Best PMIK

@SHUJAAAT HUSSAIN, coal available in Pakistan is of poor quality, so no customers to buy it. There are hardly any mineral exports worth mentioning. Only manpower and agricultural products are assets, which need proper exploration.

IK filling his pockets I see

Who is next in the line of donors? At this rate, there will be nothing left to pledge. You will have to go to IMF for bailout.

Nothing to worry about $ reserve. In Oct '99, situation was 10 times worse than today, but Pakistan recovered quickly. Pakistan defaulted in late 1998 and again in early 1999. IMF & WB bailed Pakistan out. Anyhow, in Oct '99, Pakistan $ reserve was below $0.5 bn, covering less than 3 wks import. Remitances was ~ $3 bn and FDI was almost nil. Foreign debt was $40 bn. Export was $7.6 bn and Import was ~ $12 bn. GDP was ~$62 bn. Today, there are ~$15 bn in country. $9.4 bn with SBP and ~ $5 bn in other banks. Export is ~ $25 bn. Import ~$60 bn. GDP ~$320 bn. As for remittances, due to measures during Musharraf period, it increased rapidly, and today it is ~ $22 bn. If corruption and outflow of $ from open market is stopped, then $ remittances could be in excess of $50 bn (it is this source, corrupts use to transfer their corruption wealth abroad). So, situation is not that bad and with little effort, things could become good, especially, once corruption money start getting confiscated.

@sanam azami, waste ? seriously

Party time.

PMLN borrowed 18 bn in there tenure. Anybody keeping count for IK

What's with CPEC? I thought once CPEC is live Pakistan will be giving loans worth $ billions to other countries

Good news. It's a short term bridging loan which will be repaid, no interest. Great.

These are not a loan but a deposit as news rightly said. We all know when we deposit for fixed time, we get interest. In this case Saudis will be getting interest and we don’t know how many percent but guess is that it will be around 10-12% in USD which is good as if we compare with China who is charging in the range of 17-24% and Pakistani bonds also go for 10-15% and sometime not even sold.

@vivek, The reserves in 7th Dec were $7.26 billion the data for this week(14 Dec) will be released next week on 21 Dec 2018. With the average fall of $200 million it is expected to drop to $7 billion with Saudi deposit of $1billion and regular depreciation of $200 million we can expect the reserves data on 21 Dec to be around $7.8 billion at a faster decline until January. In short it is all hanging by a thread.

@SATT, dude.. At the rate these guys are blowing up even the "assistance" money($1billion plus in 20 days

Got the money. Till today no road map is given how to get out from financial crisis.

@Hyder, for that u have to waych Saudi Ministers statement on their television.

Sad when we have to wait on news like this, by know we should be lending to poor countries. Money we could recover from the corruption of 30 years, thank you PPP PMLN.

SA has repeatedly proved to be the best and sincere friend of Pakistan.

@Falcon1, that is the issue to he fixed, which politician can address.

@Cheers, it is ‘an achievement’ to avoid IMF.

Interest-free, If not at what rate?

How many times do we have to know that we are in loans.....

Most people seem to have misunderstood the purpose of this $1B - it help tide over current account balance issues. At the end of the year, the money needs to be given back - so it is a loan - unless Saudis buy a factory or convert it into an investment into a GWADAR oil refinery - which means they will get land and resources at concession, and the refinery will become operational in 5 years, for Saudi benefit. They will then own that refinery and sell plastic products, oil and some polyyester back to pakistanis.

A country whose people do not understand that government cannot have reserves if people do not pay taxes, steal and plunder the national wealth, pilferage the power supply, do hawala transactions and stash their cash abroad has no right to complain. Thinking that IK has a magic wand and will somehow rescue the plunging economy cannot happen, if people do not cooperate with him and understand his deep fears about Pakistan. Time is running out for Pakistan. PLMN played to the gallery and made the people happy by accumulating loans and artificially lowering the exchange rate, which later generations would have to cope with. Extremely tearful and sorry to say this, either get your act together or go and sell your country on EBay.

Saudis have always been a trusted ally.

@A shah, do t talk bad about PMIK

Seems like finance minister's interview helped for prompt payment ...

congratulations, but reserves are just depleting even after loans and more loans

@SATT, approach your eastern neighbor too.. we can give too

Now next government will blame PTI after some years. Loan is always due to be paid. I hope Imran khan makes a good use of this money and help its people than bragging about loan. Happy Pakistan is good for India as well.

It will be wise to invest this money in useful projects with positive Return on Investment otherwise, this will just increase the burden which will create additional burden in the future.