KARACHI - The pace of erosion in the foreign exchange reserves of the country had accelerated after the formation of new coalition government of PPP and PML(N) as the country had lost a hefty amount of 2.231 billion dollars worth reserves in just last two and a half months, from April to mid-June 2008. Details obtained by The Nation showed that in March this year the reserves stood at 13.23 billion dollars which have plummeted to 10.909 billion dollars by June 14, 2008. The reserves with the central bank stood at 11.08 billion dollars while the domestic banks held 2.152 billion dollars reserves in March this year. By June 14, 2008, the reserves with the SBP have depleted to 8.267 billion dollars while domestic banks' reserves have edged up to 2.642 billion dollars. The coalition government was formed in the last week of March 2008. Prime Minister Syed Yusuf Raza Gilani took oath on March 25, while the oath-taking of the federal cabinet was held on March 31, 2008. Since October 2007 the foreign exchange reserves of the country have dropped by 5.491 billion dollars. In October last year the reserves had touched the highest mark of 16.40 billion dollars. Every month the country is losing around one billion dollars worth foreign exchange reserves. It may be noted here that a few weeks ago the Governor State Bank of Pakistan Dr Shamshad Akhtar and senior officials of the federal government have predicted the inflow of over three billion dollars worth foreign exchange in the month of June that was aimed at supporting the fast-exhausting reserves. But so far there is no indication of the inflow of the foreign exchange reserves that is evident from the further erosion in the strength and size of the reserves last week. Capital market sources said that the unending tug of war between the coalition partners over the formula of the reinstatement of judges, tension with President Pervez Musharraf, unabated long-march of the lawyers, threats by the US and Afghanistan to target militants in Pakistan, all-time high twin deficits have further weakened the economic fundamentals of Pakistan during the past few months. Instead of coming up to the expectations of their voters, the coalition partners were wasting most of their time in prolonging rifts and intensifying political uncertainty in the country, said sources. The real problems of the masses are the agonizing load-shedding, inflation, artificial shortage of flour, rice, unemployment, law and order situation which are being overlooked by the new government, they added.