FOREX: Reserves drop to $14.41b

KARACHI: Foreign exchange reserves dropped to $14.41 billion in the week ending October 5 from $14.90 billion the previous week, the central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) fell to $9.92 billion from $10.36 billion a week earlier, while those held by commercial banks dropped to $4.49 billion from $4.54 billion. Foreign exchange reserves hit a record $18.31 billion in July last year. Higher exports and record remittances have also supported Pakistan’s reserves. Overseas Pakistanis repatriated $3.60 billion in the first quarter of fiscal 2013. Pakistan’s reserves have been drained by debt repayments, including $109.4 million on October 1, 2012, on a $7 billion International Monetary Fund loan. The next repayment is due in February 2013.

Published in The Express Tribune, October 12^th, 2012.