Pakistan's reserves rise to $16.12billion

[Lahore_Real_Estate]

KARACHI: The country’s foreign exchange reserves rose to $16.12 billion in the week ending on August 27, from $16.11 billion a week earlier, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) rose to $12.37 billion from $12.35 billion, while those held by commercial banks fell to $3.75 billion from $3.76 billion, said Syed Wasimuddin, the SBP’s chief spokesman.

Pakistan’s forex reserves rose to a record high of $16.77 billion in the week ending on July 2 thanks to foreign inflows worth $750 million received that week.

The previous record high was $16.45 billion in October 2007.

In May, Pakistan received $1.13 billion, the fifth tranche of an $11 billion International Monetary Fund (IMF) loan.

Pakistani officials are holding crisis talks in Washington with the IMF focusing on the floods which started in July and the IMF predicted the catastrophe would have a “major and lasting” economic impact.

Pakistan agreed to an $11 billion IMF loan programme in 2008.

If the IMF agrees to ease the loan’s targets, or extend the repayment period, it would alleviate the government’s financial burden.