KARACHI - The foreign exchange reserves of Pakistan have increased by $190 million to $8.32 billion in the week ended on October 4 from $8.13 billion the previous week, the State Bank of Pakistan (SBP) said on Thursday. The reserves with SBP have increased to $4.87 billion from $4.68 billion recorded a week earlier while the reserves with domestic banks slightly up by $5.8 million  and stood at $3.46 billion. Analysts attributed the current rise in SBP's reserves to the payment of $500 million loan by the Asian Development Bank (ADB) on September 30 to help Pakistan address the problems emerged following the unprecedented hike in food items, high fuel and economic meltdown. From 2005-06 to October 2007, the reserves with the central bank rose to the highest level of 14.243 billion dollars (in October 2007). But after hitting this historical benchmark the reserves with the central bank continued to decline and finally by Sep.27, 2008, the SBP's reserves dipped down to $9.6 billion and settled at 4.68 billion dollars. Overall the national reserves of the foreign exchange have dropped to $8.13 billion dollars by Sep.27 2008, showing a decline of $8.33 billion as compared to $16.46 billion dollars total reserves in October 2007. The forex reserves with the domestic banks amount to $3.45 billion in the period under review against $2.242 billion dollars in October 2007, showing a slight improvement. Analysts attributed the massive decline in overall national reserves to economic weaknesses, political chaos and deteriorating law and order situation of the country. However, finally reserves managed to recover on the back of loan given by the ADB during the outgoing week. Capital market sources claimed that the current account deficit, triggered by the trade deficit, depreciation of rupee against the US dollar and flight of capital in the shape of investment in Dubai had led to rapid erosion in the foreign exchange reserves of the country. The high international oil prices (fuel/edible oil) and sharp increase in the imports of different groups have consumed a big chunk of additional amount of foreign exchange, causing extra burden on the national reserves. Analysts said the rise can also to be attributed to banks being closed from October 1, 2008 till October. 4 for the Eid holiday. Analysts were of the view that Pakistan in dire need of $4 billion of foreign capital inflows to meet upcoming debt obligations. Sources said the previous government could neither float international bonds nor off-load the global depository shares in the global markets due to political anarchy in the country as a result the current account deficit has triggered to a record high level, eroding a big amount of foreign exchange reserves. Meanwhile, rupee did not show any change versus US dollar in the open market today. The US currency kicked off new day's trading at Rs.79/80, stood unchanged and ended the day at the same price at close of markets on Thursday. On the international desks, the pound dropped to the lowest level against the dollar in almost three years on speculation more interest-rate cuts are needed to prevent the global financial turmoil from driving the economy into a slump.