THE STATE Bank of Pakistan on December 4, 2001, injected Rs1.4 billion in the inter bank money market. The SBP provided the liquidity through two-week reverse repo of T-bills at 7.35 per cent.

The open market operation had attracted offers worth Rs4.65 billion. But the SBP accepted offers worth Rs1.4 billion only and rejected the rest leaving the market still short of liquidity.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended December 1, 2001, both notes in circulation and those issued showed a further decrease in the week. Notes in circulation stood at Rs447,516.646 million against the preceding week’s Rs453,098.960 million, showing a fall of Rs5,582.314 million. When compared to the corresponding weeks a year ago when it was Rs406,616.728 million, the current week’s figure is higher by Rs40,899.918 million.

The total notes issued also showed a decline in the current week. At Rs447,694.164 million it was smaller by Rs5,508.638 million over a week earlier figure of Rs453,202.800 million. In the corresponding week last year it amounted to Rs40,971.909 million over the last year.

The approved foreign exchange declined in the week under review. It stood at Rs133,368.228 million, showing a fall of Rs178.871 million over the previous week’s Rs133,545.099 million. When compared to last year’s corresponding figure of Rs52,863.460 million, the current week’s figure is substantially higher by Rs80,504.768 million. Balances held outside Pakistan in approved foreign exchange, showed a substantial rise. It stood at Rs61,942.662 million over the preceding week’s figure of Rs57,729.502 million, showing a rise of Rs4,213.160 million. Compared to last year’s corresponding figure of Rs13,355.491 million, the current week’s figure is larger by Rs48,587.171 million.

Loans and advances of the scheduled banks to three sectors agriculture, industrial and export showed a mixed picture in the week under review. The agriculture sector received Rs53,867.369 million, similar to the preceding week’s figure. The current week’s figure is smaller by Rs110.263 million over the last year’s corresponding figure of Rs53,977.632 million

There was an inflow of Rs3,879.977 million in the industrial sector during the week under review, depicting a decrease of Rs41.456 million over the previous week’s Rs3,921.433 million.Compared to last year’s corresponding figure of Rs4,823.053 million.

The export sector received Rs46,280.193 million over the precious week’s figure of Rs52,382.413 million, showing a decrease of Rs6,102.220 million. The current week’s figure was lower by Rs32,251.133 million over the last year’s corresponding figure of Rs78,531.326 million.

According to the weekly statement of position of scheduled banks for the week ended November 24, 2001 the sum of demand and time liabilities continued to rise, due to an increase in both demand and time deposits n the week under review. The sum total stood at Rs1.321,392 million against the preceding week’s Rs1,289,184 million, showing an increase of Rs32,208 million. As compared to the total deposits of Rs1,193,944 million in the corresponding period last year, the current week’s deposits were higher by Rs127,448 million.

During the week under review, demand deposits decreased to Rs591,649 million or by Rs32,449 million over previous week’s Rs624,098 million, but was higher against last year’s corresponding figure of Rs573,288 million.

In the current week, time deposits were higher over the preceding week, and against the corresponding week last year. At Rs729,743 million it was higher by Rs64,657 million over the previous week’s Rs665,086 million and by Rs109,087 million, over last year’s corresponding figure of Rs620,656 million. Scheduled bank borrowings from the State Bank of Pakistan against promissory notes and other approved securities declined in the current week. At Rs122,652 million, it was lower by Rs825 million over the preceding week Rs123,477 million. Compared to last year’s figure of Rs153,539 million, the current week’s figure was lower by Rs30,887 million.

Scheduled banks borrowings from the banks abroad stood at Rs15,360 million in the current week, as against Rs15,550 million a week ago, showing a decline of Rs190 million. It was lower by Rs19,376 million over the last year’s corresponding figure of Rs34,736 million.

Money at call and short notice in Pakistan showed a rise in the week under review. It stood at Rs51,688 million, showing a rise of Rs134 million over the preceding week’s Rs51,554 million. Current week’s figure was lower by Rs13,550 million against last year’s corresponding figure of Rs38,138 million.

Scheduled banks advances including bills purchased and discounted, showed a rise in the week under review. At Rs952,176 million it was higher by Rs5,192 million over the preceding week’s Rs946,984 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs895,567 million over the previous week’s Rs304,684 million. Compared to last year’s figure of Rs267,222 million, the current week’s investment is higher by Rs47,160 million.