Forex: Reserves drop to $13.4 billion

Reserves held by the State Bank of Pakistan fell to $8.514 billion from $8.705 billion a week earlier

KARACHI: Foreign exchange reserves dropped to $13.37 billion in the week ending December 7 from $13.50 billion the previous week, the central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) fell to $8.514 billion from $8.705 billion a week earlier, while those held by commercial banks rose to $4.860 billion from $4.795 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 14.16% to $5.982 billion in the first five months, July to November, of the fiscal year 2012-13, from $5.240 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 14^th, 2012.