The dollar-hungry country has “successfully” repaid around $ 2.53 billion during the current fiscal year until May 18. These repayments are inclusive of $ 809 million the country paid in two different installments to the International Monetary Fund (IMF) under the 2008’s $ 11.3 billion, but half-paid, Stand-By Arrangement (SBA). What comforts the central bank is the fact that despite recent servicing of the country’s huge external debts, which have accumulated to around $ 62 billion, the country’s dollar reserves surged by $ 207 million.
According to central bank, the gross foreign exchange reserves of the country increased to $16.311 billion up to in the week that ended on May 18 against $16.104 billion of the previous week.
The State Bank’s holdings of the greenback swelled by $152 million to $11.936 billion during the review week compared to last week’s $11.784 billion.
The commercial banks held up to $4.375 billion against $4.319 billion, the central bank said.
“The rise in the reserves is due to some multilateral inflows and remittances,” viewed Syed Wasimuddin, the SBP chief spokesman. Receipts from the multilaterals, the spokesman said, amounted to $94 million during the current month, up to May 18.
Wasimuddin said up to May 18 of FY12 Pakistan had repaid debts worth $2.53 billion, inclusive of $ 809 million to IMF, and other miscellaneous payments of $1.52 billion.
The receipts from multilaterals and others, however, remained lower at $ 1.21 billion.
The country, the SBP spokesman said, had made the first installment under the IMF’s SBA facility of $399 million in the week ending on February 24 (2012). Whereas the second installment of $394 million was also “successfully” paid to the Fund on 25th of current month.
Wasimuddin also contradicted some media reports that the State Bank had been aggressively buying dollars from the market to make the SBA repayment to the IMF.
“The central bank has not been conducting any purchases from the market in the recent weeks, including the current week, and the movement in exchange rate has been somewhat sentiment-driven rather than any excessive demand and supply mismatches prevailing in the market,” he clarified.
Adding: “The State Bank is watching the situation closely”.
During the first 10 months of current fiscal year, ranging from July to October FY12, the dollar inflows remitted by overseas Pakistanis rose by 20.2 percent to $ 10.877 billion. This helped the Balance of Payments despite widening of trade deficit, he said.
Whereas the country’s current account deficit widened beyond $ 3.39 billion against last year’s surplus of $ 466 million, the workers remittances appeared as the only comforting item on the Balance of Payment list.
