Foreign exchange: Reserves rise to record $17.59 billion

Release of were $633 million by US last month boosted reserves .

KARACHI: Foreign exchange reserves rose to a record $17.59 billion in the week ended February 19, up from $17.44 billion the previous week, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) rose to $14.08 billion from $13.91 billion, while those held by commercial banks fell to $3.51 billion from $3.53 billion, said the SBP.

A rise in remittances and exports were the main reasons for the increase in foreign exchange reserves, analysts said. Remittances by overseas Pakistanis were recorded at $6.12 billion during the first seven months of fiscal year 2010-11, up 17.7 per cent from the same period last year, according to data from SBP.

Foreign exchange reserves were boosted last month by more than $633 million after the United States released the money for military and logistical support in the fight against militancy. In May 2010, the government received $1.13 billion - the fifth tranche of an $11.3 billion International Monetary Fund bailout programme.

Published in The Express Tribune, February 25^th, 2011.