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.