There’s been a flurry of economy related news about Pakistan recently, and I’ve tried to hit the highlights at least. Another positive development is the substantial growth in Pakistan’s foreign reserve position which has now reached an all time historic high of $18.25B. This increase is due to many factors, the two most important being the increase in foreign exchange remittances being sent to the country by Pakistani workers abroad, and the improvement in the import/export gap. That this high has been achieved at a time when global oil prices are relatively steep, is even more expensive. One would imagine that as oil prices ease – which seems to be an almost universal expectation – the rate of growth of the national foreign exchange reserve would accelerate further. The implications of this rise are interesting. In the near-medium term, one would imagine this addresses any fears of weakness in the Pakistani Rs. So for near/medium term investments of foreign moneys into Pakistan, value loss due to a depreciation in the Pak Rs. presents a much reduced risk. Experts believe that the projections for Pakistan’s economy and investment potential in the country over a 5-year time horizon remain stellar. During this time, regional stability is expected to heighten with the announced withdrawal of NATO forces from Afghanistan. The financial burden of the War on Terror is expected to thus diminish within Pakistan and a return to the country’s “natural” GDP growth rate of 6-8% can be counted upon. With the backdrop of rising exports, an officially declared if rather conservative goal of bridging the power gap over a 5-7 year time frame, and rising remittances, the prospects for Pakistan’s economy are sound. Now its very very shocking kind of info to me. Everyday every Pakistani is getting more and more stressed due to financial and economical situation of the country. See... there is a brighter side also. There should be a good policy to lessen the effect of inflation. We still have good basis to develop...!
Saturday, 16 July 2011
Pakistan’s foreign reserves rise to all time high of $18.25B...!
There’s been a flurry of economy related news about Pakistan recently, and I’ve tried to hit the highlights at least. Another positive development is the substantial growth in Pakistan’s foreign reserve position which has now reached an all time historic high of $18.25B. This increase is due to many factors, the two most important being the increase in foreign exchange remittances being sent to the country by Pakistani workers abroad, and the improvement in the import/export gap. That this high has been achieved at a time when global oil prices are relatively steep, is even more expensive. One would imagine that as oil prices ease – which seems to be an almost universal expectation – the rate of growth of the national foreign exchange reserve would accelerate further. The implications of this rise are interesting. In the near-medium term, one would imagine this addresses any fears of weakness in the Pakistani Rs. So for near/medium term investments of foreign moneys into Pakistan, value loss due to a depreciation in the Pak Rs. presents a much reduced risk. Experts believe that the projections for Pakistan’s economy and investment potential in the country over a 5-year time horizon remain stellar. During this time, regional stability is expected to heighten with the announced withdrawal of NATO forces from Afghanistan. The financial burden of the War on Terror is expected to thus diminish within Pakistan and a return to the country’s “natural” GDP growth rate of 6-8% can be counted upon. With the backdrop of rising exports, an officially declared if rather conservative goal of bridging the power gap over a 5-7 year time frame, and rising remittances, the prospects for Pakistan’s economy are sound. Now its very very shocking kind of info to me. Everyday every Pakistani is getting more and more stressed due to financial and economical situation of the country. See... there is a brighter side also. There should be a good policy to lessen the effect of inflation. We still have good basis to develop...!
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