KARACHI: Country’s foreign exchange reserves fell to $17.50 billion in the week ending Feb. 26, down from a record $17.59 billion the previous week, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan (SPB) fell to $14.03 billion from $14.08 billion in the week ending Feb. 26, and those held by commercial banks also fell to $3.47 billion from $3.51 billion, the SBP said.

Foreign exchange reserves touched a record high in the previous week because of a rise in remittances and exports, analysts said.

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 SBP.

Reserves were boosted in January by more than $633 million after the United States provided Pakistan with military and logistical support to fight the country's Islamist insurgency.

In May 2010, Pakistan received $1.13 billion in the fifth tranche of an $11 billion International Monetary Fund bailout programme.

An IMF mission is currently in Pakistan conducting the fifth review of the bailout loan, ahead of the sixth release of funds.

Copyright Reuters, 2011

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