The country’s dollar reserves have increased to $17.523 million during the week that ended on June 18, according to the State Bank of Pakistan. This shows an increase of $6 million or 0.03 per cent from the foreign exchange reserves of $17.517 billion the country held last week.
According to SBP figures, during the week under review, the central bank held $14.107 billion as opposed to $14.085 billion of last week, registering a $22 million or 0.15 per cent increase. The dollar reserves of the commercial banks kept contracting and slid to $3.415 billion from the previous week’s $3.432 billion. SBP Chief Spokesman Syed Wasimuddin says such nominal changes in the banks’ reserves are because of routine cash withdrawals by account holders.
Driven primarily by exports and worker remittances, the current healthy dollar inflow is expected to take the country’s foreign exchange reserves to a record high by the end of FY11, thus ridding the heavily-indebted Pakistan of its balance of payment woes for the time being. The county would start to retire the remaining amount of $11.3 billion loans under the IMF’s 2008 Stand-By Arrangement from the next financial year.
Analysts reviewing the situation cautiously suggest that Islamabad should take immediate and affective steps to lure foreign investment into the country. This, they believe, is the sole solution to the country’s balance of payment problems.
Forex reserves inch to $17.523b
