The State Bank of Pakistan is on the brink of bankruptcy, as the country’s foreign debt has increased to Rs 403 billion ($3.63 billion) due to depreciation of the rupee in the last few months. “Yesterday the foreign reserves figure published by SBP stood at $2.963 billion. SBP’s net forward book number is $2.925 billion, which is basically dollars that are sold to banks to help intervene/stabilise cashflows. So essentially SBP reserves are at $38 million,” informed sources told Pakistan Today. By end of the last fiscal year, the federal government’s total debt was Rs 14 trillion, which increased to Rs 15 trillion by September — an increase of Rs 1 trillion, according to the State Bank of Pakistan figures. A Finance Ministry official informed the National Assembly on Friday that the public and publicly-guaranteed foreign debt, including the money owed to the International Monetary Fund has increased to $3.63 billion as a result of depreciation of rupee during the present government.” Pakistan People’s Party (PPP) lawmaker Nafisa Shah had raised the issue in parliament. To her question, Parliamentary Secretary for Finance Rana Afzal Khan raised points on the devaluation of rupee, saying that initiatives like building up of reserves and enhancing exports were required to strengthen the rupee. “We have planned substantial foreign exchange inflows, loans from multi-lateral and bilateral sources,” he said. Foreign exchange reserves held by the SBP have declined to a 12-year low of $2.9 billion, hitting its lowest level since November 2001, according to fresh data. DAR COMES UP WITH OWN FIGURES: Meanwhile, Finance Minister Ishaq Dar said the foreign exchange reserves have risen to $3.4 billion dollars, witnessing an increase of $500 million this week. He said Pakistan was also hoping for a $550 million tranche from IMF after the December 19 meeting. “The country is also expected to get $350 million of Coalition Support Funds (CSF) and about $600 million from Etisalat, for which a meeting will be held next week. We want to take our reserves to $20 billion in future as Pakistani economy is moving in the right direction," said Dar, the prime minister’s finance guru. Dar said Pakistan is also planning to make its 3G auction in February and it was expecting to receive $1.2 billion and even more from it. The minister hoped that the government would be able to bring the dollar rupee rate close to Rs 100. - See more at: http://www.pakistantoday.com.pk/2013/12/14/news/profit/central-bank-reserves-hit-record-low/#sthash.IfxuNYfr.dpuf
Saturday, December 14, 2013
The State Bank of Pakistan is on the brink of bankruptcy
The State Bank of Pakistan is on the brink of bankruptcy, as the country’s foreign debt has increased to Rs 403 billion ($3.63 billion) due to depreciation of the rupee in the last few months. “Yesterday the foreign reserves figure published by SBP stood at $2.963 billion. SBP’s net forward book number is $2.925 billion, which is basically dollars that are sold to banks to help intervene/stabilise cashflows. So essentially SBP reserves are at $38 million,” informed sources told Pakistan Today. By end of the last fiscal year, the federal government’s total debt was Rs 14 trillion, which increased to Rs 15 trillion by September — an increase of Rs 1 trillion, according to the State Bank of Pakistan figures. A Finance Ministry official informed the National Assembly on Friday that the public and publicly-guaranteed foreign debt, including the money owed to the International Monetary Fund has increased to $3.63 billion as a result of depreciation of rupee during the present government.” Pakistan People’s Party (PPP) lawmaker Nafisa Shah had raised the issue in parliament. To her question, Parliamentary Secretary for Finance Rana Afzal Khan raised points on the devaluation of rupee, saying that initiatives like building up of reserves and enhancing exports were required to strengthen the rupee. “We have planned substantial foreign exchange inflows, loans from multi-lateral and bilateral sources,” he said. Foreign exchange reserves held by the SBP have declined to a 12-year low of $2.9 billion, hitting its lowest level since November 2001, according to fresh data. DAR COMES UP WITH OWN FIGURES: Meanwhile, Finance Minister Ishaq Dar said the foreign exchange reserves have risen to $3.4 billion dollars, witnessing an increase of $500 million this week. He said Pakistan was also hoping for a $550 million tranche from IMF after the December 19 meeting. “The country is also expected to get $350 million of Coalition Support Funds (CSF) and about $600 million from Etisalat, for which a meeting will be held next week. We want to take our reserves to $20 billion in future as Pakistani economy is moving in the right direction," said Dar, the prime minister’s finance guru. Dar said Pakistan is also planning to make its 3G auction in February and it was expecting to receive $1.2 billion and even more from it. The minister hoped that the government would be able to bring the dollar rupee rate close to Rs 100. - See more at: http://www.pakistantoday.com.pk/2013/12/14/news/profit/central-bank-reserves-hit-record-low/#sthash.IfxuNYfr.dpuf
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