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C/A Deficit At $81 Million Forex Reserves Rise to a Record $17.44 Bln

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Pakistan's current account deficit for July-January was a provisional $81 million, compared with a deficit of $3.052 billion in the same period last year, the central bank said on Friday.

In January, the current account deficit was a provisional $62 million, compared with a surplus of $570 million in December. The current account deficit for the fiscal year 2009/10 was $3.946 billion, compared with $9.261 billion in fiscal year 2008/09.

Pakistan's foreign exchange reserves rose to a record $17.44 billion in the week ending Feb. 12, up from $17.31 billion the previous week, the central bank said on Thursday. Reserves held by the State Bank of Pakistan rose to $13.91 billion from $13.76 billion in the week ending Feb. 12, while those held by commercial banks fell to $3.53 billion from $3.55 billion, said the SBP.

"Foreign exchange reserves rose to a record because of a rise in remittances and increasing exports," said Syed Wasimuddin, chief spokesman for the central bank. Remittances by overseas Pakistanis were recorded at $6.12 billion during the first seven months of the fiscal year 2010/11, up 17.70 percent from the same period last year, according to data from the State Bank of Pakistan.

Pakistan's foreign exchange reserves were boosted last month by more than $633 million after the United States provided military and logistical support to fight Islamist militancy. In May, Pakistan received $1.13 billion -- the fifth tranche of an $11 billion International Monetary Fund bailout programme.

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