Forex reserves decline to $14.243 billion

Staff Report KARACHI: The country's foreign exchange reserves have declined to $14.243 billion on the week ending on September 05 as compared with $14.307 billion last week, data released by the State Bank of Pakistan shows on Thursday.The overall reserves recorded a loss of $64 millions during the last week. The reserves held by the SBP witnessed a decrease of $52 million to reach $10.739 billion, compared with $10.791 billion last week. The reserves held by the banks other than SBP recorded a decline of $11 million to reach $3.504 billion as compared with $3.515 billion last week. The third tranche of the loan approved by the IMF recently had boosted the foreign exchange reserves of the country, but economists have criticized the approach of the government. They say that obtaining loans to increase reserves was not a good strategy. They add that government should try to increase reserves by boosting exports. They also say that reserves will start declining once again once the payments of these loans begin. By obtaining the loan in November 2008 Pakistan avoided a default on its obligations as it had to pay $500 million that it had borrowed by launching bonds a few years ago. However, government's continued reliance on IMF is not desirable, say the economists.