By Sahar Ahmed Dec 14 (Reuters) - The Pakistani rupee hit a fresh record low on Wednesday as import payments climbed and exporters clung tightly on to their dollars as the country's economic outlook darkened. U.S. lawmakers are ready to freeze up to $700 million in aid to Pakistan until Congress gets assurances that Islamabad is helping fight the spread of homemade bombs in the region, a move which add pressure the country's current account and dwindling reserves. The rupee traded as weak as 89.67 to the dollar, one bank dealer said, but closed at 89.55/61, compared with Tuesday's close of 89.10/20. [For a Q+A on why the Pakistani rupee is weakening, click on Exporters held on to their dollars because of the bleak economic outlook, putting further pressure on the rupee, dealers said. The International Monetary Fund forecasts Pakistan's economic growth for the 2011/12 fiscal year will slow to 3.5 percent, lower than the government's target of 4.2 percent. Pakistan's current account deficit stood at $1.6 billion in July-Oct compared with $541 million in the same period a year earlier. Islamabad has to start repaying an $8 billion IMF loan in early 2012, and without additional sources of revenue, its foreign exchange reserves may come under pressure, analysts say. It has to make a large repayment of about more than $1.1 billion in the second half of 2011/12 fiscal year. Foreign exchange reserves fell to $16.68 billion in the week ending Dec. 2, compared with a record $18.31 billion in the week ended July 30. Rising remittances from Pakistanis working abroad have provided some support for the rupee, rising some 18 percent to $5.24 billion in the first five months of the 2011/12 fiscal year, compared with $4.43 billion in the same period last year. Remittances slipped in November, however, to $924.92 million from $926.89 million in the same month last year. Stocks slightly rose on Wednesday as bargain hunters accumulated blue chip companies' shares such as Oil and Gas Development Co Ltd (OGDCL) on attractive prices. But most investors stayed on the sidelines because of deteriorating Pakistan and U.S. relations. The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.20 percent, or 22.97 points, higher at 11,300.99 on turnover of just 34.96 million shares. OGDCL ended 1.31 percent higher at 154.94 rupees. In the money market, overnight rates closed higher at between 9.25 percent and 9.75 percent, compared with Tuesday's close of 9 percent after the State Bank of Pakistan conducted a 2-day repo and sold treasury bills worth 22.5 billion rupees ($252.38 million). (Editing by Kim Coghill)

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