PPI Original Text (PPI-OT) – Foreign Exchange Reserves increase by $207 million to $16.311 billion

Karachi, May 24, 2012 (PPI-OT): Pakistan’s gross foreign exchange reserves increased by $207 million to $16.311 billion in the week ended on May 18, 2012 from $16.104 billion the previous week, the State Bank of Pakistan (SBP) said today.

Foreign exchange reserves held by SBP increased by $152 million to $11.936 billion during the week under review from $11.784 billion a week earlier, while those held by commercial banks increased to $4.375 billion from $4.319 billion, the SBP Chief Spokesman, Syed Wasimuddin said, adding that the rise in the reserves was due to some multilateral inflows and remittances.

During the current month until May 18, 2012, receipts from multilaterals amounted to $94 million, according to SBP Chief Spokesman.

He pointed out that during the current fiscal year until May 18, 2012, Pakistan has made debt payments amounting to $2.53 billion (inclusive of $809million to IMF) and other miscellaneous payments of $1.52 billion, while receipts from multilaterals and others amounted to $1.21 billion.

Pakistan had made the first installment under IMF/ Standby Arrangement (SBA) facility of $399million in the week ended on February 24, 2012, whereas the second instalment under IMF/SBA facility amounting to $394million has also been successfully made value dated 25May2012, SBP Chief Spokesman added.

Syed Wasimuddin denied media reports that the State Bank has been aggressively buying dollars from the market to make Standby Arrangement (SBA) payment to the International Monetary Fund (IMF).

He said that SBP has not been conducting any purchases from the market in the recent weeks, including the current week, and the movement in exchange rate has been somewhat sentiment driven rather than any excessive demand and supply mismatches prevailing in the market. The State Bank is watching the situation closely, the Chief Spokesman added.

He said that during the first 10-months of FY 2011/12, remittances from overseas Pakistanis rose by 20.2% to $ 10.877 billion, which helped Balance of Payments (BoP) despite widening of trade deficit.

For more information, contact:
Syed Wasimuddin
Chief Spokesman
State Bank of Pakistan (SBP)
Tel: +9221 3921 2562
Fax: +9221 3921 2563
Email: syed.wasimuddin@sbp.org.pk

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