Due slowing remittences from overseas and weakening of rupee, Pakistan foreign exchange reserves declined to $14.48 billion in the week ending on Feb. 6 from $14.52 billion the previous week, State Bank of Pakistan official was quoted saying today.

Earlier this week State Bank had reported remittances were declining every month since October 2009 and the overseas Pakistanis sent $758.2 million in October, $742 million in November, $698.4 million in December and $667.9 million in Jan, 2010.

Reserves held by the State Bank of Pakistan fell to $10.70 billion from $10.72 billion a week earlier, while those held by commercial banks eased to $3.78 billion from $3.80 billion the previous week.

Pakistan’s foreign reserves hit a record high of $16.5 billion in October 2007 but fell steadily to $6.6 billion by November 2008, largely because of a soaring import bill.

An International Monetary Fund emergency loan package of $7.6 billion agreed in November 2008 helped avert a balance of payments crisis and shore up reserves.

The IMF increased the loan to $11.3 billion in July and the central bank received a fourth tranche of $1.2 billion on Dec. 28.

According to an article in Dollars Magazine, gap in the price of dollar between open market and the inter-bank has widened during this period and is still expanding despite the efforts made by the State Bank to control it.