Pak Forex reserves faces erosion of 3.1billion dollars in five months

April 4th, 2008 - 3:46 pm ICT by admin  

Karachi, Apr 4 (ANI): The Pakistans Foreign Exchange Reserves has seen an erosion of 3.10 billion dollars in just five months of the current financial year, indicating a threat to the health of the countrys economy.

The State Bank of Pakistan has reported 13.27 billion dollars worth total foreign exchange reserves by March 29, 2008, which indicates a huge plunge of 3.10 billion dollars when matched with the record high 16.37 billion dollars reserves on November 2, 2007, according to The Nation.

At present foreign exchange reserves with the central bank stand at 11.099 billion dollars as on March 29, 2008, as compared to from 14.166 billion dollars on November 2, 2008, indicating a decline of 3.067 billion dollars during the period under review.

Meanwhile, the reserves with the domestic banks slightly dropped to 2.175 billion dollars by March 29, 2008, from 2.206 billion dollars on November 2, 2007.

Financial sector analysts said that the current account deficit, triggered by the trade deficit, has accelerated the outflow of the foreign exchange greater than the inflow of the foreign currency in the shape of remittances, foreign investment and external economic assistance/loans, etc. (ANI)

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