Thursday, 7 April 2011

Reserves slip to $17.64bn

KARACHI, April 7: Pakistan`s foreign exchange reserves eased to $17.64 billion in the week ending on April 2, from a record $17.95 billion the previous week, a senior central bank official said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) fell to $14.26 billion from $14.54 billion a week ago while those held by commercial banks eased to $3.38 billion from $3.41 billion, said SBP chief spokesman Syed Wasimuddin.

“The decline in reserves during the week is due to scheduled debt repayments,” said Wasimuddin.

Pakistan`s forex reserves have grown steadily thanks to higher export proceeds as well as record inflow of remittances.

Remittances rose by 20 per cent to $6.96 billion in the first eight months of the 2010-11 (July-June) fiscal year, compared to the same period the previous year, according to central bank data.

Foreign exchange reserves were boosted in January by more than $633 million when the US provided funds.

In May 2010, Pakistan received $1.13 billion in the fifth tranche of an $11 billion International Monetary Fund (IMF) bailout programme.

An IMF mission was in Pakistan last month to conduct a review of the country`s economy.

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