Propaganda of Farrukh Saleem got busted again...

ع

عمر

Minister (2k+ posts)
shahidsaqi said:
i dont understand all of you people. SBP report is there other than farrukh saleem's report. Read that only and everything is clear. even if you dont want to read that, isn't govt taking loans from saudi, uae, china, imf & from national banks? are they not printing money? its clear from every single angle that govt is wasting money or increasing debt exponentially
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From your statements it is pretty obvious that you do not understand us and the economy as well. Govt. has not yet taken loans. They have been announced, all have not yet been received. Plus they are being taken to make due payments (debt payments). Do you not understand that? Its so simple. When you take dollars, you have to pay them back. In Dollars. A country earns dollars from exports, remittances or FDI. That is it. You cannot print or grow dollars. And i do not need to explain to you the state of exports and FDI in 5 years of PMLN. just a hint. It was worse than PPP.
Now obviously SBP is going to print that debt in rupees has increased. But why? Not because the govt. has taken loans but because the exchange rate has gone up. So debt in rupees automatically goes up. However, you still have to earn dollars and then pay your debt in dollars.
 
shahidsaqi

shahidsaqi

Senator (1k+ posts)
عمر said:
From your statements it is pretty obvious that you do not understand us and the economy as well. Govt. has not yet taken loans. They have been announced, all have not yet been received. Plus they are being taken to make due payments (debt payments). Do you not understand that? Its so simple. When you take dollars, you have to pay them back. In Dollars. A country earns dollars from exports, remittances or FDI. That is it. You cannot print or grow dollars. And i do not need to explain to you the state of exports and FDI in 5 years of PMLN. just a hint. It was worse than PPP.
Now obviously SBP is going to print that debt in rupees has increased. But why? Not because the govt. has taken loans but because the exchange rate has gone up. So debt in rupees automatically goes up. However, you still have to earn dollars and then pay your debt in dollars.
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ok Mr. economist. tell me govt is taking intl and national loans or not? give me yes or no.
 
ع

عمر

Minister (2k+ posts)
shahidsaqi said:
ok Mr. economist. tell me govt is taking intl and national loans or not? give me yes or no.
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Nobody is saying that the govt. is not taking loans. Because unfortunately dollar do not grow on trees. And when payments are due, the creditors will not wait for your policies to take root and wait for your exports and FDI to grow. The payments are to be made on time. Plus you need dollars for imports. So obviously we need dollars otherwise the govt. won't be going to all the friendly countries.
Secondly the govt. needs to get local loans because of revenue shortage. When you do not earn enough revenue to tackle your expenditures, you have to take loans.
But the important point is that both fiscal deficit and current account deficit is decreasing which means that govt. does not need as many loans as the previous governments did. However they will need loans till they make current account and fiscal deficit equal to zero. That is common sense. I hope you have enough to understand that this cannot be achieved in days, weeks or months.
So in summary, the govt. is taking loans. But the figures presented by Mr. Farrukh are incorrect because more than half of the increase in debt is due to exchange rate.
 
shahidsaqi

shahidsaqi

Senator (1k+ posts)
عمر said:
Nobody is saying that the govt. is not taking loans. Because unfortunately dollar do not grow on trees. And when payments are due, the creditors will not wait for your policies to take root and wait for your exports and FDI to grow. The payments are to be made on time. Plus you need dollars for imports. So obviously we need dollars otherwise the govt. won't be going to all the friendly countries.
Secondly the govt. needs to get local loans because of revenue shortage. When you do not earn enough revenue to tackle your expenditures, you have to take loans.
But the important point is that both fiscal deficit and current account deficit is decreasing which means that govt. does not need as many loans as the previous governments did. However they will need loans till they make current account and fiscal deficit equal to zero. That is common sense. I hope you have enough to understand that this cannot be achieved in days, weeks or months.
So in summary, the govt. is taking loans. But the figures presented by Mr. Farrukh are incorrect because more than half of the increase in debt is due to exchange rate.
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when NS gone we had reserves of 16 billion now it is at 7 billion. till now govt dont have to give loans back to imf or china or saudi or uae. so where 9 billion gone? do you think all of it gone to loan repayment? if yes then where? this they have done in 5 months only. plus that 7 billion contain 2 billion from china and 1 billion from saudi. so basically govt spent 12 billion.
 
ع

عمر

Minister (2k+ posts)
shahidsaqi said:
when NS gone we had reserves of 16 billion now it is at 7 billion. till now govt dont have to give loans back to imf or china or saudi or uae. so where 9 billion gone? do you think all of it gone to loan repayment? if yes then where? this they have done in 5 months only. plus that 7 billion contain 2 billion from china and 1 billion from saudi. so basically govt spent 12 billion.
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It was not 16 billion. Please learn something. You are arguing without any knowledge. State Bank has separate reserves and commercial Banks have separate reserves. You are adding up all of them and then quoting 16 billion dollars. Read this and you will understand what was the actual situation of the reserves.

https://fp.brecorder.com/2018/07/20180706387856/

Now why do country's foreign reserves fall? Because you are spending more or on import bill and receiving much less in exports, FDI and remittances. That is why every month, the dollar reserves continue to deplete. PTI govt. has not spent the dollars anywhere except imports which had been increased to a whopping 60 billion dollars compared to 23 billion dollars exports. By the way, when PMLN left the govt, the reserves were 9 billion dollars or less with SBP. Now they are around 7.3 billion with SBP. Overall they are at around 14 billion dollars.

The only way to stop the reserves from depleting is to reduce imports, increase exports, remittances and FDI. And since PTI is in govt., that is what has started to happen finally.
 
shahidsaqi

shahidsaqi

Senator (1k+ posts)
عمر said:
It was not 16 billion. Please learn something. You are arguing without any knowledge. State Bank has separate reserves and commercial Banks have separate reserves. You are adding up all of them and then quoting 16 billion dollars. Read this and you will understand what was the actual situation of the reserves.

https://fp.brecorder.com/2018/07/20180706387856/

Now why do country's foreign reserves fall? Because you are spending more or on import bill and receiving much less in exports, FDI and remittances. That is why every month, the dollar reserves continue to deplete. PTI govt. has not spent the dollars anywhere except imports which had been increased to a whopping 60 billion dollars compared to 23 billion dollars exports. By the way, when PMLN left the govt, the reserves were 9 billion dollars or less with SBP. Now they are around 7.3 billion with SBP. Overall they are at around 14 billion dollars.

The only way to stop the reserves from depleting is to reduce imports, increase exports, remittances and FDI. And since PTI is in govt., that is what has started to happen finally.
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so it reduces by around 2 billion. ok now that figure is understandable.
 
S

syf277

MPA (400+ posts)
عمر said:
It was not 16 billion. Please learn something. You are arguing without any knowledge. State Bank has separate reserves and commercial Banks have separate reserves. You are adding up all of them and then quoting 16 billion dollars. Read this and you will understand what was the actual situation of the reserves.

https://fp.brecorder.com/2018/07/20180706387856/

Now why do country's foreign reserves fall? Because you are spending more or on import bill and receiving much less in exports, FDI and remittances. That is why every month, the dollar reserves continue to deplete. PTI govt. has not spent the dollars anywhere except imports which had been increased to a whopping 60 billion dollars compared to 23 billion dollars exports. By the way, when PMLN left the govt, the reserves were 9 billion dollars or less with SBP. Now they are around 7.3 billion with SBP. Overall they are at around 14 billion dollars.

The only way to stop the reserves from depleting is to reduce imports, increase exports, remittances and FDI. And since PTI is in govt., that is what has started to happen finally.
Click to expand...


my friend make sure that the person you are explaining this to has has something between his ears in this case behind his eyes that can decipher what you have written
 
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