Pakistan forex reserves increase to $16.43bn

Pakistan’s foreign exchange reserves increased to $16.43bn during the week ending 27 April, from $16.42bn a week earlier, revealed the central bank on Thursday.

Reserves which the State Bank of Pakistan (SBP) holds rose from $11.92bn to $12.07bn, while those which commercial banks hold dropped from $4.50bn to $4.36bn, reports Reuters.

Foreign exchange reserves reached a record $18.31bn last July, aided by inflows of $411m, such as a loan of $196.8m from the Asian Development Bank and one of $191.9m from the World Bank. Record remittances and higher exports have also helped Pakistan’s reserves.

Remittances from Pakistanis living in other countries around the world went up by 21.45 per cent to $9.72bnduring the opening nine months of the fiscal year for 2011/2012, in comparison with $8.02bn for the same nine-month period in 2010/2011. Remittances in March hit a total of $1.14bn.

Since then, reserves have been impacted by repayments of debt, including $399m during the week ending 24 February. This repayment was made to a loan of $8bn from the International Monetary Fund. The next repayment which Pakistan will have to make is due before the 2011/2012 fiscal year comes to an end.