KARACHI: Pakistan’s foreign exchange reserves slipped to $16.88 billion on regular debt payments by the week ended on October 22, the central bank said on Thursday.
The foreign exchange reserves held by the State Bank of Pakistan (SBP) declined to $13.09 billion while those held by other commercial banks came down to $3.79 billion, it said.
Earlier on October 15, the reserves hit an all-time high of $17.1 billion owing to healthy inflows of remittances and foreign aid. The country received $287 million in grants this month for rehabilitation of the flood victims, according to finance ministry data. The reserves position got a boost from the IMF emergency loan of $451 million last month.
The IMF said that the money would support Pakistan’s budget to help with the additional spending brought about by the floods and also satisfy immedia
The reserves hit their lowest of $6.59 billion on November 22, 2008 amid worsening situation of the economy and fears of a balance of payment crisis.
The threats were averted when the government secured $7.6 billion loan from the IMF in November 2008, which was later increased to $11.3 billion in August 2009.
The country has so far received five instalments of the loan and the latest of $1.13 billion was transferred in May this year.
However, the release of the sixth tranche is still unclear as the IMF has linked the sixth instalment reportedly to increase in the tax base and revenue collection by enforcing the reformed general sales tax.
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