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Foreign exchange reserves hit high at $18.3b with $11.2b remittances 

28 Julie 2011 09:11:57

Foreign exchange reserves hit high at $18.3b with $11.2b remittances

Spokesman of the State Bank of Pakistan Syed Wasimuddin Thursday said inflows of remittances with an increase of 25.77 percent as compared to last year boosted Pakistan's foreign exchange reserves to a record high $18.30 billion from $18.23 billion. The net increase of $ 0.07 billion has been recorded during the last week ended on 23rd July 2011.

The SBP spokesman said the reserves held by the Bank rose to $14.74 billion from $14.71 billion a week ago, while those held by commercial banks increased to $3.56 billion from $3.52 billion.

Though International Monetary Fund (IMF) released $1.13 billion in May 2011 followed by a booster doze that came in June 2011 with inflows of $411 million, including a loan of $191.9 million from the World Bank, and another loan of $196.8 million from the Asian Development Bank, yet major portion of the foreign exchange reserves steadily grew from higher export proceeds and a record inflow of remittances. Official data shows remittances rose to a record $11.2 billion in 2010/11 fiscal year, an increase of 25.77 percent compared with the same period last year. At the moment, remittances form 61.2 percent of the total current foreign exchange reserves.

International Fund for Agriculture Development (IFAD), a specialized agency of the United Nations, in its quarterly Financing Facility for Remittances newsletter has reported Pakistan as a top nation that has shown the highest growth in the world in remittances despite recent global financial crisis. According to the newsletter, Pakistan is followed by Bangladesh, Mauritius, Swaziland, Guinea-Bissau and Philippines, which have also shown strong growth in remittances.

Economic experts viewed that Pakistan’s economy during the current financial year has marked significant advancement in different sectors, including huge inflow of foreign remittances and surge in the foreign exchange reserves hence steadily moving towards sustainability notwithstanding the current domestic as well as global challenges. They attributed this success and resilience in the economy to the prudent economic policies of the PPP-led government, as the major economic indicators have improved considerably, leading to sustainable economic development.