Pakistani forex reserves flat at $17.52bn

KARACHI: Pakistan's foreign exchange reserves were flat at $17.52 billion in the week ending June 18, unchanged from the previous week, a central bank official said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) rose to $14.11 billion from $14.09 billion a week ago, while those held by commercial banks eased to $3.41 billion from $3.43 billion, said the SBP's chief spokesman Syed Wasimuddin.

Pakistan's forex reserves have grown steadily thanks to higher export proceeds, as well as record inflow of remittances, hitting an all-time high of $17.95 billion during the week that ended on March 26.

Reserves have since eased slightly on debt repayments.

Remittances sent by overseas Pakistanis crossed $10 billion for the first time, hitting $10.1 billion in the first 11 months of the 2010/11 fiscal year, an increase of 25.20 percent compared with the same period last year, according to SBP data.

Foreign exchange reserves were boosted in January by more than $633 million when the United States provided funds for military and logistical support for Pakistan's campaign against a Taliban insurgency.

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

Pakistan and the IMF ended talks last month in Dubai to discuss budget targets for 2011/12 fiscal year.

They are due to meet again in July to discuss the possible release of the sixth tranche.

Copyright Reuters, 2011