Foreign Exchange: Forex reserves fall to $16.64 billion

Reserves held by the SBP fell to $12.21 billion from $12.29 billion a week earlier

KARACHI: Pakistan’s foreign exchange reserves fell to $16.64 billion in the week ending February 17, compared with $16.77 billion the previous week, the central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) fell to $12.21 billion from $12.29 billion a week earlier, while those held by commercial banks also fell to $4.43 billion, compared with $4.48 billion the previous week. Islamabad is repaying an $8 billion International Monetary Fund loan. “The repayment of $399 million of the IMF loan (International Monetary Fund) is due tomorrow,” said Syed Wasimuddin, spokesman of SBP. Without additional sources of revenue, that will further drain Pakistan’s foreign exchange reserves. Higher exports and a record inflow of remittances have helped support Pakistan’s foreign exchange reserves so far. According to official data, remittances rose 21.54 percent to $7.43 billion in the first seven months of fiscal 2012.

Published in The Express Tribune, February 24^th, 2012.