Pakistan’s foreign exchange reserves eased to $17.11 billion in the week ending on April 30, from $17.18 billion the previous week, the central bank said. Reserves held by the State Bank of Pakistan (SBP) rose to $13.70 billion from $13.68 billion a week ago, while those held by commercial banks rose fell to $3.41 billion from $3.50 billion, SBP said.
Pakistan’s forex reserves have grown steadily thanks to higher export proceeds as well as record inflow of remittances, hitting an all-time high of $17.95 billion during the week ended March 26. Reserves have since eased slightly on debt repayments. Remittances from overseas Pakistanis increased by 22.37 percent to more than $8 billion in the first nine months of the 2010/11 fiscal year (July-June), and in March, a record $1.05 billion was received, according to SBP data.
Foreign exchange reserves were boosted in January by more than $633 million when the United States provided funds for military and logistical support for Pakistan’s campaign against a Taliban insurgency. In May 2010, Pakistan received $1.13 billion in the fifth tranche of an $11 billion International Monetary Fund (IMF) bailout programme. Pakistan and the IMF are due to meet in Dubai from May 11-17 to discuss budget targets for the fiscal year 2011/12 and the next tranche of an $11 billion bailout loan, a finance ministry official said on Thursday.
