Pakistan's foreign reserves drop $26mn to $14,107mn

KARACHI: Foreign exchange reserves decreased $26 million to $14,107 million in the week ending Dec 29, compared to $14,133 million in the previous week, the State Bank of Pakistan said on Thursday.

The reserves decreased due to payments on account of external debt servicing and other official outflows, added SBP.

Earlier in December, the SBP received $2.5 billion earned from the issuance of euro and Sukuk bonds.

The country had also raised $1 billion in a five-year Sukuk and $1.5 billion in ten-year Eurobond transactions in a separate issuance the same month.

The rupee was devalued in December, following which the International Monetary Fund (IMF) mission to Pakistan welcomed the State Bank's move to allow the currency exchange rate to adjust to market conditions. The lending body also called for a "continued exchange rate of flexibility in the period ahead".

IMF Director Harald Finger had said the exchange rate adjustment would help support Pakistan's exports and economic growth..