Forex: Reserves down to $16.42 billion

KARACHI: Foreign exchange reserves fell to $16.42 billion in the week ended February 24 because of repayment of $399 million of an International Monetary Fund loan, compared with $16.64 billion the previous week, the central bank said on Thursday. Reserves held by the State Bank of Pakistan fell to $12.06 billion from $12.21 billion a week earlier, while those held by commercial banks also fell to $4.36 billion, compared with $4.43 billion the previous week. Foreign exchange reserves hit a record $18.31 billion in July last year, but have since fallen due to debt repayments. Without additional sources of revenue, there will be a further drain on foreign exchange reserves. Higher exports and a record inflow of remittances have also helped support Pakistan’s reserves. According to official data, remittances rose 21.5 per cent to $7.43 billion in the first seven months of the fiscal year.

Published in The Express Tribune, March 2^nd, 2012.