Get well soon! ❤️‍🩹 — Pakistan

The total loss in terms of international remittances in the current fiscal year is over 4 Billion USD, which is far more than the bailout package that Pakistan is trying to get from the IMF.

Pakistan received a total remittance of $27.024 billion during fiscal year 2023, against a record $31.278 billion in fiscal year 2023, a decline of 13.6% or $4.254 billion (ouch!).

I can assume the reason behind this FALL and see what happened in 2022 when Pakistan hit the record for remittances in history, and then I can see why Pakistan lost $4.254 billion.

Overseas Pakistanis are loyal to one party or group in Pakistan since the party is allegedly being targeted overseas. Pakistanis have either stopped sending money or they have changed their ways of sending money back home (hundi or hawala).

The government tried to maintain the dollar-rupee parity at Rs 220 in the first half of 2023, which proved counterproductive. The dollar grossly appreciated in the open market, and resultantly, a grey or black market emerged that started offering Rs 20 to Rs 25 per dollar higher rates, badly hitting remittances.

Another reason is the increased interest rates on international transactions. Markets, though a small number of people stopped sending money back home and started saving money abroad, did the damage.

The majority of the Overseas Pakistanis were investing in real-estate in Pakistan, and from the last year on, the real estate industry has just seen a decline.

Please add more pointers if you think these are the reasons for the $4.245 Billion loss to Pakistan’s economy.

 

SVB Fall ?? Quick Inside

SVB bank’s business model is straightforward: people deposit cash, and the bank loans money to others or invests in securities for higher interest returns.

As Silicon Valley grew, so did SVB’s deposits, which rose from $76 billion in June 2020 to $190 billion in December 2021. To maximize returns, SVB invested in long-term assets such as Treasury bonds and MBS, which offered high yields but low liquidity. This strategy worked well until early 2022, when the Fed’s interest rate hike caused the present value of SVB’s securities to drop, resulting in unrealized losses. Silicon Valley companies couldn’t raise cheap money and needed to withdraw cash from SVB to keep functioning.

As a result, SVB had to sell securities to handle withdrawals, causing realized losses on the balance sheet. This triggered a bank run, and people withdrew more money in panic. SVB needed to sell more securities to cover withdrawals, leading to further losses, that ultimately drained SVB’s liquidity and led to bankruptcy.

 

Currency devaluations, Hidden Truth!

Writing on a currency note in your pocket

“Hamil will pay Haza on-demand”

This means that the government is obliged to pay gold equivalent to this note at your request.

If today the population of Pakistan returns the notes to the State Bank and starts taking gold, then only 20% of the notes will be usable and the price of the remaining 80% notes is Rs. 13 per kg. The rest of the notes have no gold at all, their value is the same as the paper.

After World War II, Europeans burned currency notes instead of wood as the price of wood was higher at that time.

The concept of inflation, the price of a egg was two dirhams in the time of Pharaoh which remained till the end of the 19th century. If we consider this it Mean zero percent inflation.

The value of paper money has fallen several hundred times in the last 100 years. Inflation is a tax that the rich and the poor pay equally without any discrimination. The biggest cause of poverty and misery is paper currency and the interest paid on it.

When any country borrows from the IMF, the dollars don’t flow to them. Only computer transaction takes place in a bank account. Dollars are not transferred to this account either. As of today, 3% of the world’s dollars are printed and remaining 97% are stored on computers. The IMF charter clearly states that no country can issue gold and silver. If it does, the IMF will not lend to such a country, and shall i ask for repayment of pending amounts.

Many heads of countries in the world have been killed for trying to issue their currency or gold and silver.

The first condition for the lending loan from the IMF is privatization and then lending. Ever wonder why this is so.

All petroleum countries, including Saudi Arabia and Iran, are forced to sell petrol only in dollars and not in the currency of the country selling or buying.

This is the biggest fraud in human history