Forex: Reserves drop to $13.5 billion

KARACHI: Foreign exchange reserves dropped to $13.50 billion in the week ending November 30 from $13.58 billion the previous week, the central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) fell to $8.705 billion from $8.860 billion a week earlier, while those held by commercial banks rose to $4.795 billion from $4.715 billion. Foreign exchange reserves hit a record $18.31 billion in July 2012. Higher exports and record remittances have also supported Pakistan’s reserves. Remittances from Pakistanis abroad rose 15.04% to $4.964 billion in the first four months of the 2012/13 fiscal year, from $4.315 billion in the same period last year. Pakistan’s reserves have recently been drained by debt repayments on a $7 billion International Monetary Fund loan. The next repayment is due in February 2013.

Published in The Express Tribune, December 7^th, 2012.