October 22, 2001	Monday	Shaba'an 4, 1422

THE central bank sold Rs3.5 billion T-bills at the reduced cut “off and sucked in Rs3.2 billion from the banking system.

In a subsequent move, the SBP also injected Rs7.3 billion in the inter-bank market through one-week reverse repo of T-bills at 9.8 per cent. Bankers said the slashing of yield on T-bills coupled with the timely injection of funds reinforces earlier the SBP signal that it would keep the market reasonably liquid.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended October 13, 2001 both notes in circulation and those issued continued to show an increase in the week under review.

Notes in circulation stood at Rs415,527.947 million against preceding week’s Rs409,649.479 million, showing an increase of Rs5,878.468 million.

When compared to the corresponding week a year ago when it was Rs372,745.518 million, the current week’s figure is higher by Rs42,782.429 million.

Total notes issued also showed a rise in the current week. At Rs415,732.123 million it was higher by Rs5,914.619 million over a week earlier figure of Rs409,817.504 million. In the corresponding week last year it amounted to Rs372,924.112 million, which shows an increase of Rs42,808.011 million over the year.

The approved foreign exchange, dropped further in the week under review. It stood at Rs117,407.575 million, showing a fall of Rs1,238.7 million over previous week’s Rs118,646.275 million. When compared to last year’s corresponding figure of Rs47,874.804 million, the current week’s figure is higher by Rs69,532.771 million.

Balances held outside Pakistan in approved foreign exchange, continued to rise in the week under review. It stood at Rs17,274.361 million, over preceding week’s figure of Rs16,144.149 million, showing an increase of Rs1,130.212 million. Compared to last year’s corresponding figure of Rs13,888.322 million, the current week’s figure is larger by Rs3,386.039 million.

Loans and advances of scheduled banks to the three sectors, agricultural, industrial and export showed a mixed picture in the week under review. The agricultural sector received Rs54,313.790 million, against preceding week’s figure of Rs54,504.995 showing Rs922,817 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs855,593 million, the current week’s advances are higher by Rs69,363 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities recorded a decline in the week under review, such investment amounted to Rs309,603 million, a fall of Rs1,868 million over previous week’s Rs311,471 million. Compared to last year’s corresponding figure of Rs293,398 million, the current week’s investment is lower by Rs16,205 million.

Total assets of all scheduled banks also fell in the week under review.

These recorded an increase of Rs1,982,689 million against previous week’s Rs1,984,070 million or by Rs13,381 million. Compared to last year’s corresponding figure of Rs1,842,124 million it shows arise of Rs140,565 million.