Forex: Currency reserves fall to $11.938 billion
Reserves held by the State Bank of Pakistan (SBP) fell to $6.817 billion from $7.277 billion a week earlier.
KARACHI:
Foreign exchange reserves dropped to $ 11.938 billion in the week ending April 19 from $12.370 billion in the previous week, the central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) fell to $6.817 billion from $7.277 billion a week earlier, while those held by commercial banks increased to $5.121 billion from $5.092 billion. Pakistan, on March 28, successfully paid its 11th installment worth $143.75million of Stand-By-Arrangement (SBA) to the IMF. The next IMF repayment of $391 million is due at the end of May. Heavy debt repayments to the IMF have been putting a dent in the central bank’s reserves, which have declined by nearly 20% in the current fiscal year. Meanwhile, exports and record remittances have supported Pakistan’s reserves.
Published in The Express Tribune, April 26th, 2013.
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it is the responsibility of SBP to take care of current account deficit and repayment to IMF. with a monthly current account deficit averaging 400 million and repayment of say 1 billion in the coming financial year July 2013 to June 2014 the reserve will last hardly for 12 months unless some foreign investment comes in between which seems distant in view of violent and terrorist activities within the country.. Difficult time is awaiting the new government.