Friday, September 7, 2007

Pakistan's Foreign Reserves at $16 billion

Pakistan's foreign exchange reserves cross $16 billion mark

KARACHI (September 07 2007): Liquid foreign reserves have crossed 16 billion-dollar mark, reaching historic level of 16.0789 billion dollars despite the outflow of some 133 million dollars in portfolio investment.The central bank on Thursday issued the latest figures of liquid foreign reserves, which depicted an increase of 260.7 million dollars in overall reserves from 15.8182 billion dollars to 16.0789 billion dollars during the last week.

During the last week, foreign reserves, held by the central bank, have gone up by 289.9 million dollars to 13.804 billion dollars from 13.5141 billion dollars. The reserves, held by banks, show a decline of 29.2 million dollars during the last week, as it has reached 2.2749 billion dollars previously stood at 2.3041 billion dollars last week.The historical achievement of this record level of foreign exchange reserves has been made possible by the healthy growth in external flows, including foreign direct investment (FDI), home remittances, said the central bank."It is a positive indicator.

Despite a decline of 133 million dollars in portfolio investment during the 2008 fiscal 2008, the overall foreign reserves show an upsurge," economics experts said.They said that foreign reserves, after reaching 16 billion dollars peak level, the country was able to make imports of six months without any assistance, as the country's overall imports would reach 32 billion dollars during the current fiscal."This increase in liquid foreign reserves may be due to a big inflow of foreign loan or remittances by Pakistanis abroad, but the reason of rise would be confirmed later in the current account," they added.

It may be mentioned here that at the end of the last fiscal, the country's foreign exchange reserve showed tremendous growth of 2.4768 billion dollars to historic level of over 15.6137 billion-dollar benchmark as compared to 13.1369 billion dollars during the 2005-06 fiscal year.

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