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Forex reserves decline by $436m

Forex reserves decline by $436m

KARACHI: Pakistan’s foreign exchange reserves have declined by $436 million in the last week due to debt payment.

According to weekly report issued by the State Bank, the forex reserves decreased to $8.09 billion on December 20, 2013 as compared to $8.526 billion on December 13, 2013. During the week under review, SBP’s liquid forex reserves fell by $275 million to $3.193 billion as compared to $3.468 billion last week.

The decrease in the reserves is mainly due to payments of $185 million, of which external debt servicing was $162 million, inclusive of $58 million repayment to the IMF and other official payments equal to $23 million. During the week, there was no major inflow from multilateral and bilateral sources.

During the last week, with a decline of $161 million, reserves held by banks reached below $5 billion. At the end of last week, banks’ reserves stood at $4.89 billion down from $5.05 billion a week earlier.

The effect of IMF’s release of second tranche under Extended Fund Facility will be reflected in the next week’s reserves report.