November 5, 2001	Monday	haba’an 18, 1422

THE State Bank of Pakistan (SBP) on October 31, 2001 reduced the Treasury bill cut-off rates by 1.64-1.81 per cent in a follow-up of two per cent cut in the discount rates on October 20, 2001.

This is the third cut in the TBs yield within a month. Earlier on October 03, and October 17 the SBP had made modest cuts.

The SBP slashed the cut-off yield from 10.28 per cent to 8.50 per cent on six-month Treasury Bills and from 10.74 per cent to 19.10 per cent on one-year bills. It also reduced the maximum yield on three-months bills from 10 to 8.19 per cent.

The SBP on November 2, 2001 conducted its reverse repo open market operation in the Treasury Bills (purchase) and accepted the bid for Rs4,550 million at 7.50 per cent per annum rate of return against an offer of Rs8,431 million for one week reverse repo.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended October 27, 2001, both notes in circulation and those issued continued to show an increase in the week. Notes in circulation stood at Rs418,675.883 million against preceding week’s Rs418,270.680 million, showing an increase of Rs405.203 million. When compared to the corresponding week a year ago when it was Rs372,286.235 million, the current week’s figure is higher by Rs46,389.558 million.

Total notes issued also showed a rise in the current week. At Rs418,910.704 million it was higher by Rs496.671 million over a week earlier figure of Rs418,414.033 million. In the corresponding week last year it amounted to Rs372,419.652 million, which shows an increase of Rs46,491.052 million over the year.

The approved foreign exchange continued to rise in the week under review. It stood at Rs122,780.026 million, showing a rise of Rs3,694.174 million over previous week’s Rs119.085.852 million. When compared to last year’s corresponding figure of Rs48,655.788 million, the current week’s figure is higher by Rs74,124.238 million.

Balances held outside Pakistan in approved foreign exchange, continued to rise in the week under review. It stood at Rs21,152.685 million over preceding week’s figure of Rs20,165.470 million, showing an increase of Rs987.215 million. Compared to last year’s corresponding figure of Rs11.916.402 million, the current week’s figure is larger by Rs9,236.283 million.

Loans and advances of scheduled banks to the three sectors, agricultural, industrial and export showed a mixed picture in the million it was higher by Rs4,127 million over preceding week’s Rs928,579 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs865,155 million, the current week’s advances are higher by Rs67,551 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities recorded a fall in the week under review. Such investment amounted to Rs303,185 million, a fall of Rs1,793 million over previous week’s Rs304,978 million. Compared to last year’s corresponding figure of Rs289,279 million the current week’s investment is higher by Rs13,906 million.

The total assets of scheduled banks rose in the week under review. These rose to Rs1,995,331 million against previous week’s Rs1,989,429 million showing an increase of Rs5,902 million. Compared to last year’s corresponding figure of Rs1,824,621 million it shows a rise of Rs170,710 million.