Pakistan forex reserves fall to $17.64 bn

by Zeba Khan Hoti Fri Sep 23, 2011 5:27 pm

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KARACHI: Pakistan's foreign exchange reserves fell to $17.64 billion in the week ending Sept 17 from $17.79 billion the previous week, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) declined to $14.12 billion from $14.34 billion, while those held by commercial banks rose to $3.52 billion from $3.45 billion, according to the State Bank of Pakistan.

"The decline in reserves is due to scheduled debt repayments," said Syed Wasimuddin, chief spokesman for the central bank.

Foreign exchange reserves hit a record $18.31 billion in the week ending July 30 but have eased due to debt repayments.

The reserves were boosted in June by inflows of $411 million, including a $191.9 million loan from the World Bank, and a loan of $196.8 million from the Asian Development Bank.

Higher export proceeds and a record inflow of remittances have helped Pakistan's forex reserves grow steadily.

According to official data, remittances were $1.31 billion in August, 40 percent more than the $933.06 million received a year earlier. (Reuters)