Pakistan Economy: News & Discussion

[ezsasa]

@Neo

have you heard any of the modi's "Mann ki baat" speeches?

 

[nongaddarliberal]

Pakistan's foreign exchange reserves falling fast.

Reserves fall by $1.19b in couple of weeks


ISLAMABAD - Pakistan’s foreign exchange reserves sharply declined by $1.19 billion during the last two weeks mainly due to the repayment on foreign loans taken in the past.

“The government of Pakistan made massive foreign loans repayment during last few weeks, which depleted the reserves,” said an official of the ministry of finance. He further said that overall reserves were still sufficient for import cover of over 4 months. “There is nothing to worry right now,” he added.

The total liquid foreign reserves held by the country stood at $20.44 billion on July 21. The break-up of the foreign reserves position released on Thursday showed that foreign reserves held by the State Bank of Pakistan stood at $15 billion while net foreign reserves held by commercial banks are $5.43 billion. During the week ending 21st July, SBP’s reserves decreased by $476 million. Similarly, the reserves already showed a decline of $718 million during the week that ended on July 14.

The government is struggling to maintain the country’s reserves. Pakistan had obtained massive foreign loans worth $10.6 billion during the last fiscal year 2016-17.

The government’s borrowing had gone beyond the target of $8 billion for the last fiscal year, as the country had taken $10.6 billion loans. The government has borrowed $4.37 billion from the commercial banks in the fiscal year 2016-17.

On the other, the country’s external sector is under pressure. Pakistan continued to face serious deterioration in its balance of payments situation during the last fiscal year FY17 as the country had to suffer current account deficit of $12 billion in the backdrop of rising import bill and disappointing export performance.

The continuous increase in current account deficit is also putting pressure on the country’s foreign exchange reserves of the country.



IMRAN ALI KUNDI

 

[nongaddarliberal]

hahaha, just 20 billion USD, compared to our 391 billion USD.

 

[Neo]

@Neo

have you heard any of the modi's "Mann ki baat" speeches?

No I haven't; what's it about?

 

[ezsasa]

No I haven't; what's it about?

It's a monthly radio address by Modi....
have a listen....

 

[Neo]

It's a monthly radio address by Modi....
have a listen....

Its in Hindi. I can't follow.
......................

 

[Hiranyaksha]

China leads as Pakistan sees FDI of $2.41b in 2016-17, up 5%
By Farhan Zaheer
Published: July 18, 2017

PHOTO: AFP

KARACHI: Foreign Direct Investment (FDI) increased by 5% to $2.41 billion in fiscal year 2016-17 which ended on June 30, compared to $2.30 billion in the previous year, according to data released by the State Bank of Pakistan (SBP) on Monday.

Pakistan received $5.4 billion in fiscal year 2007-08, which is the highest amount in the country’s history, according to the Board of Investment (BoI).

However, the country has been recording low levels of foreign investment since 2008. Many foreign investors, especially from western countries, have pulled out due to the persistent energy crisis, poor governance and security challenges.

CPEC praised for enhancing regional connectivity

China dominates with 49% share

Chinese investors are pouring cash due to the China-Pakistan Economic Corridor (CPEC) projects mainly in major infrastructure projects. Pakistan’s eastern neighbour leads the list of individual countries pouring investment in FY17 with $1.186 billion, up by 11% from $1.064 billion in the last year.

In June 2017 alone, the country received net FDI of $104 million from China.

Netherlands emerged as the second leading country with FDI of $463 million in FY17 compared to just $29.9 million in the same period of last year. This comes on the back of a $448-million acquisition of Engro Foods by FrieslandCampina – a Dutch food company.

Turkey came at number three with $136 million in FY17 compared to just $17 million in the same period of last year while France brought in investments of $119 million compared with $95 million in the corresponding period.

Major decline from Norway, Egypt, UK and UAE

Fiscal year 2017 saw a major decline in FDI coming from Norway, which dropped to a negative $13 million from $172 million in FY16. Similarly, this year Pakistan did not receive any FDI from Egypt though it got a decent FDI of $141 million from the North African country in 2016.

The FDI coming from UK declined to $69 million in FY17, down 54% from $151 million in last year. Likewise, the country received just $59 million from the UAE in FY17, down 46% compared to $110 in the previous year.

Overseas investors find 94% reduction in crime

Sector breakdown

Power sector received the highest FDI of $795 million in FY17, but it was still significantly down from $1.159 billion from the previous year.

This was followed by the food sector where the country received $493 million in FY17 compared to net outflow of $56 million in the previous year.

Surprisingly, construction was also among the fastest growing sectors in FY17; receiving a significant $468 million compared to just $46 million in FY16. The electronics sector also received a respectable $143 million compared to just $34 million in FY16.

Published in The Express Tribune, July 18th, 2017.

Boasting about investments of ticket size around 100 million USD is a shame. It is nothing but penny.

And just posting figures about investment means nothing. They should be backed with return conditions along with it.

Till my understanding the "Loans" what you guys sucking on is at exorbitant cost. And these same "loans" you are braging about will bring your country's demise.

 

[Hiranyaksha]

hahaha, just 20 billion USD, compared to our 391 billion USD.

It is ridiculous of you to compare shitistan with Bharat.

 

[Screambowl]

@Neo

have you heard any of the modi's "Mann ki baat" speeches?

full of BS time waste ..
..................................................................

 

[Screambowl]

Its in Hindi. I can't follow.
......................

tu chutiya hai phir....
galiya hindi mein toh tu samjh jata hai lol

 

[thethinker]

Its in Hindi. I can't follow.
......................

Teri gand me to aise kharish ho rahi hai jese baap ka asli naam pata chal gaya ho.

http://defenceforumindia.com/forum/threads/china-economy-news-discussion.2744/page-69#post-1329478

That was in Hindi too, what you had said. :biggrin2:

 

[thethinker]

Its in Hindi. I can't follow.
......................

This was in Hindi too, what you had mentioned before :

Adat se majboor.
............................

http://defenceforumindia.com/forum/...i-gossip-misc-etc.51070/page-132#post-1329935

Denials and lies - Pakis doing what they do the best.

 

[thethinker]

tu chutiya hai phir....
galiya hindi mein toh tu samjh jata hai lol

Pathological liars can't keep up with different versions of lies. So they lie and lie more hoping to get out, unfortunately they keep getting entangled and it's hilarious to point that out.

@Neo Why is that you can chit chat and abuse in Hindi but suddenly "dont follow"Hindi when asked to watch Modi speeches?

 

[Hiranyaksha]

This was in Hindi too, what you had mentioned before :



http://defenceforumindia.com/forum/...i-gossip-misc-etc.51070/page-132#post-1329935

Denials and lies - Pakis doing what they do the best.

Not their fault. Pakis mothers lied to them about their fathers because Jija Saale ka relation kharab ho jata.

 

[thethinker]

Not their fault. Pakis mothers lied to them about their fathers because Jija Saale ka relation kharab ho jata.

Kya besharam aawam hain ye Pakis, kabhi bhi sach nahi bolte.

That chap was abusing in fluent Hindi while back and now can't follow Hindi

 

[Screambowl]

Pathological liars can't keep up with different versions of lies. So they lie and lie more hoping to get out, unfortunately they keep getting entangled and it's hilarious to point that out.

@Neo Why is that you can chit chat and abuse in Hindi but suddenly "dont follow"Hindi when asked to watch Modi speeches?

galiyon key bhooton ko batein samajh nahi ati Bhai sahab

 

[thethinker]

galiyon key bhooton ko batein samajh nahi ati Bhai sahab

Woh to sab ko patan hain. Itne shameless hain ye Pakis like @Neo that they will completely ignore this and start with their usual nature of posting false news and false equivalency soon.

Just that it gives an idea about their Pakiness.

Lies, denials and victimhood posturing everywhere.

 

[Screambowl]

Woh to sab ko patan hain. Itne shameless hain ye Pakis like @Neo that they will completely ignore this and start with their usual nature of posting false news and false equivalency soon.

Just that it gives an idea about their Pakiness.

Lies, denials and victimhood posturing everywhere.

the best word to describe them is sheikh chilli that too pirated ones.

 

[Vikramaditya]

Its in Hindi. I can't follow.
......................

Urdu bhi hamara hi h.. bhik m mela Desh or jaban m itna ghamand.......

 

[Neo]

Deals inked for export of $325m worth of goods to China
By Shahbaz Rana
Published: August 11, 2017

Move aimed at addressing concerns of domestic businesses . PHOTO: REUTERS

ISLAMABAD: Pakistan and China on Thursday signed over three-dozen trade pacts for exporting $325 million worth of goods to Beijing, aimed at addressing private sector’s concerns about adverse implications for their businesses of government-to-government trade deals.

The signing ceremony for the Pakistan-China Trade Cooperation Projects was held in Islamabad in which 18 Chinese companies signed about 38 trade agreements valued at $325 million.

These agreements would facilitate exports of electrolytic copper, fish meal, seafood, pine nuts, guar products, leather, frozen fresh food, castor, chrome ore, zircon ores, coarse copper, hazelnut, sauces, crustaceans and marble blocks from Pakistan, China’s Department of Foreign Trade Deputy Director Wang Dongtang stated.

CPEC and the opportunity for agriculture

Chinese Ambassador to Pakistan Sun Weidong and Trade Development Authority of Pakistan (TDAP) Secretary Inamullah Khan witnessed the signing ceremony.

China’s Ministry of Commerce has organised visit of a trade promotion group to Pakistan. Eighteen Chinese companies associated with textile, pharmaceutical, agriculture product, petrochemical and commercial trading sectors are on a three-day trip to Pakistan.

The 2006 China-Pakistan Free Trade Agreement (FTA) has tilted the balance in favour of Beijing, sparking fears among local businesses about trade disparity. Tariff and tax concessions given to Chinese businesses under the China-Pakistan Economic Corridor (CPEC) have further aggravated the situation.

Usually, such business-to-business deals are done by the private sector without the involvement of government departments. The signing of trade agreements showed that China highly valued Pakistani market, the Chinese ambassador stated after the signing ceremony.

Weidong said China was hoping to become Pakistan’s biggest trading partner for the third consecutive year. He said CPEC was progressing smoothly and its completion would address energy supply and infrastructure issues.

Bilateral trade between Pakistan and China currently amounts to $19.2 billion, of which Pakistan’s share was a paltry $1.9 billion in 2016, Inamullah Khan said.

Pakistan will be paying China $90b against CPEC-related projects

State Bank of Pakistan’s (SBP) data shows exports to China dropped 14% in fiscal year 2016-17 and reached $1.62 billion, despite China being Pakistan’s second-largest export destination.

Overall exports of the country have also decreased after the current government came to power in 2013, cumulatively reducing by one-fourth at $20.9 billion.

The TDAP secretary said the new initiative would promote Pakistani products in Chinese markets through a more focused approach. The $325 million trade deals are equivalent to one-fourth of Pakistan’s exports to China in 2016-17.

After becoming a member of the World Trade Organisation (WTO), China had opened its economy and liberalised trade, Dongtang said, adding China would constantly enforce positive import policies.

He said the two countries’ economies were complementary to each other, urging businesses of both sides to take full advantage of the relationship.

Promoting bilateral trade cooperation is one of the key elements of CPEC’s long-term plan (LTP). LTP documents reveal that Pak-China trade has grown rapidly in the past five years with average growth of 18.8% per annum.

Bilateral investment has also soared during this time with China becoming one of the largest foreign investors in Pakistan.

The LTP recommends strengthening Pak-China cooperation in trade and industry and adopting a liberalised trading regime. It focuses on construction of industrial parks in Pakistan to realise these goals along with reducing reliance on the US dollar for bilateral trade by using the Chinese renminbi (RMB).

“Both countries shall strengthen financial cooperation between their Free Trade Zones and explore the formation of a RMB backflow mechanism,” the LTP notes.

Published in The Express Tribune, August 11th, 2017.