Forex: Reserves fall to $16.34 billion

KARACHI: Foreign exchange reserves fell to $16.34 billion in the week ended March 2, compared with $16.42 billion in the previous week, the central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) fell to $11.90 billion from $12.06 billion a week earlier, while those held by commercial banks rose to $4.44 billion, compared with $4.36 billion the previous week. “The decrease in SBP’s forex reserves are due to scheduled debt repayments,” said Syed Wasimuddin, chief 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 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, compared with $6.12 billion in the same period a year earlier.

Published in The Express Tribune, March 9^th, 2012.