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Pakistan's Forex Reserves Fall to $17.09 Billion

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Pakistan's foreign exchange reserves fell to $17.09 billion in the week ending Jan. 8, down from a record $17.20 billion in the previous one, the central bank said on Thursday.Reserves held by the State Bank of Pakistan (SBP) fell to $13.44 billion from $13.53 billion in the week ending Jan. 8, while those held by commercial banks also fell to $3.65 billion from $3.67 billion, said Syed Wasimuddin, chief spokesman of the central bank.

Pakistan's foreign exchange reserves reached their record high in the week ending Jan. 1 as the country received more than $633 million from the U.S. for providing military and logistical support to fight Islamist militancy. It had previously hit a record high of $17.10 billion in the week ending Oct. 15 because of an increase in remittances from overseas Pakistanis and a narrowing trade deficit.

Earlier the reserves got a boost in September after the IMF sent Pakistan $450 million and said that the money would go toward the budget to help with additional spending for flood relief and immediate foreign exchange needs. This was separate from the $11 billion IMF bailout programme, agreed in 2008. In May, Pakistan received $1.13 billion in the fifth tranche of the programme

posted @ 10:16 AM,

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