Thread by @MirMAKOfficial

Rauf Bhai: I have immense respect for you but this is absolutely misguidance

Let’s please be black & white

1. Ishaq DAR took loans in $ based returns from the international markets. NOT Rupee based loans.

2. The interest and principle payback on the loans taken by DAR..

https://twitter.com/klasrarauf/status/1215533637132804097

We’re both in Dollars.

3. When Dar took Dollar loans in the international markets the loan rate for Sovereign bonds was 4% approximately. Dar took at 8.25%.

4. In actuality it costed PAKISTAN 13%+ in payback because of Rupee-Dollar fluctuation

NOW PAKISTAN Hot Money...

5. These are RUPEE based loans where foreigners are buying our debt in local rupees. NOT IN DOLLARS

6. Foreigners or locals invest in Rupees and get the returns in rupees. Unlike the Dar mechanism where they lend in dollars and are guaranteed a return in dollars

7 that put an immense pressure on our foreign reserves plus the cost of borrowing was left to fluctuations.

8. And the myth and misreporting that foreigners can borrow money from their banks overseas at 1.7% and invest in Pakistan at 13%-IS A COMPLETE LIE

8. If that was

The case then the foreign banks themselves would invest their funds in Pakistan and make money.

9. Banks DO NOT lend money overseas in dollars without a collateral and for non project based investments to be invested for Interest Rate Arbitrage.

10. Secondly, once an

Investor converts his dollars to invest in rupee based government paper in Pakistan he or she is at the mercy of pakistans’ currency fluctuations and in an improving economy where the rupee can go back down to 148 or so, all the gains made by the investors of 13% rupee based

Return is wiped out within a second. And the cost of payback for PAKISTAN is a Win-Win situation.

11. The best practice for any country with low foreign reserves is to borrow funds indigenously meaning in its local currency instead of a borrowing it in foreign currency.

12. Yes, once the investors want to cash out on their 10 year 5 year or any period government paper then they will convert the profits into dollar and repatriate it. And that happens when the FDI comes into Pakistan as well.

13. All FD returns are repatriated in dollars as...

As well.

14. Why do we get happy when FDI comes but we are angry when HOT MONEY is coming in ? IF both the returns are to be repatriated in dollars. At least in this case the payback is in Rupees and not dollars. And IF the economy improves then Pakistan’s rupee gets

Stronger and our cost of borrowing is better. The investor loses not our country.

15. If the return was 13% in dollars then the entire world would be running to PAKISTAN to lend money to us including all the international banks and PAKISTAN would have $180 billion

In foreign reserves (Albeit borrowed) instead of the mere $1.8 billion thay we have raised from these government papers.

At the end it is my humble suggestion to you my brother that WE as Pakistanis need to pinpoint where government is doing wrong and not misguide the

General public with twisted facts and insinuated outcomes that are based not on facts but rather on personal likes or dislikes of our biased inner opinions.

MAY PAKISTAN RISE and may we all benefit.

AMEEN.