Pakistan's foreign exchange reserves hit fresh high

03 Mar, 2007

Pakistan's foreign exchange reserves increased by $62 million to another new high of $13.343 billion in the week ending on February 24, the central bank said on Friday.
Reserves held by the State Bank of Pakistan (SBP) rose to $10.998 billion from $10.929 billion, however, those held by the commercial banks fell marginally to $2.345 billion from $2.352 billion, the central bank said in a statement.
Pakistan's foreign exchange reserves have grown sharply in recent months, from healthy remittances from overseas Pakistanis, and a rise in foreign direct investment.
Foreign direct investment rose more than 69 percent to $2.1 billion in the first seven months of the 2006/07 fiscal year (July-June), led by inflows into the financial, communications and energy sectors, official figures show.
Inflows from foreign portfolio investment during July-January were $697.4 million, up from $400.5 million in the corresponding period last year. During the period, remittances sent by Pakistanis abroad were recorded at $2.96 billion, up from $2.44 billion in the year-ago period.

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