KARACHI: Country’s foreign exchange reserves reached close to $17 billion, an all-time high, said a State Bank report issued on Thursday.
While the government is busy negotiating with the IMF to get release of two tranche of the Standby Agreement of $11 billion, the higher inflow of remittances and support for aid has helped reserves make a new record.
The reserves of the State Bank reached $13.156 billion while that of commercial banks reached $3.836 billion to make the country’s total as $16.992 billion.
A couple of weeks ago while foreign exchange reserves were intact, rupee started depreciating against the US dollar and fell to new record low.
The rising foreign exchange reserves did not support local currency which lost 6.1 per cent against the dollar in 2009, though reserves were intact.
Currency watchers said the local currency has been losing because of weak economy and uncertainty regarding country’s relations with the US as Pakistan is an important partner in war against terrorism and due to hidden fear in the rising current account deficit.
For the first two months of the on-going fiscal year, the current account deficit was 48 per cent higher than the same months of the previous year.
Pakistan has been asking the European countries to provide space for its exports reflecting that the country could earn some more dollars, but rising trade and current account deficits mitigated the enthusiasm about stable exchange rate.