KARACHI: Pakistan’s foreign exchange reserves rose to $16.39 billion in the week ended March 9 because of an increase in reserves held by commercial banks, compared with $16.34 billion in the previous week, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) fell to $11.86 billion from $11.90 billion a week earlier, while those held by commercial banks rose to $4.53 billion, compared with $4.44 billion the previous week.

Foreign exchange reserves hit a record $18.31 billion in July last year, boosted by inflows of $411 million, including a $191.9 million loan from the World Bank, and a $196.8 million loan from the Asian Development Bank.

Higher exports and a record inflow of remittances have also helped support Pakistan’s reserves.

According to official data, remittances from overseas Pakistanis rose 23.4 per cent to $8.59 billion in the first eight months of the 2011/12 fiscal year, compared with $6.96 billion in the same period last year.

In February, overseas Pakistanis sent back $1.16 billion.

But reserves have since been drained by debt repayments, including $399 million in the week ending Feb 24 on a $8 billion International Monetary Fund loan.

Without additional sources of revenue, repayments will further drain Pakistan’s reserves.