Foreign exchange reserves eased to $17.64 billion in the week ended April 2, from a record $17.95 billion the previous week, according to the State Bank of Pakistan (SBP).
Reserves held by the central bank fell to $14.26 billion from $14.54 billion a week ago, while those held by commercial banks eased to $3.38 billion from $3.41 billion, said SBP chief spokesman Syed Wasimuddin. “The decline in reserves during the week is due to scheduled debt repayments,” he said.
Forex reserves have grown steadily owing to higher export proceeds as well as record inflow of remittances. Remittances rose by 20 per cent to $6.96 billion in the first eight months of the current fiscal year compared with the corresponding period the preceding year, according to the central bank data.
Reserves were boosted in January by an inflow of more than $633 million by the United States for military and logistical support amid the war against terror.
In May 2010, Pakistan received $1.13 billion in the fifth tranche of an $11 billion International Monetary Fund (IMF) bailout programme. An IMF mission was in Pakistan last month to conduct a review of the country’s economy.
Published in The Express Tribune, April 8th, 2011.
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