The State Bank of Pakistan (SBP) on December 12, 2001, cut the maximum yield on Treasury Bills by 13 basis points to 18.16 per cent for six months and by 29 basis points to 8.54 per cent for one year. So far, this fiscal year, the central bank has cut the weighted average yield of six-month and one-year bills by 4.4 per cent and 3.4 per cent respectively.

Senior bankers said the SBP sold Rs2.75 billion Treasury Bills on December 12 against the target of Rs3 billion. The central bank sold Rs2.25 billion six-month bills at a maximum yield of 8.16 per cent and Rs500 million one-year bills at 8.54 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended December 08, 2001, both notes in circulation and those issued showed an increase in the week as against declines witnessed earlier. Notes in circulation stood at Rs461,453.530 minion against preceding week’s Rs447,516.646 region, showing a rise of Rs13,936.884 million. When compared to the corresponding week a year ago when it was Rs412,870.674 million, the current week’s figure is higher by Rs48,582.906 million.

Total notes issued also showed an increase in the current week. At Rs461,581.230 million it was larger by Rs13,887.066 million over a week earlier figure of Rs447,694.164 million. In he corresponding week last year it amounted to Rs413,021.922 million, which shows an increase of Rs48,559.308 million over the year.

The approved foreign exchange rose in the week under review. It stood at Rs134,360.519 million, showing a rise of Rs1,001.291 million over previous week’s Rs133,368.228 million. When compared to last year’s corresponding figure of Rs63,477.399 million, the current week’s figure is substantially higher by Rs70,892.12 million.

Balances held outside Pakistan in approved foreign exchange, also rose in the week. It stood at Rs62,537.372 million over preceding week’s figure of Rs61,942,662 minion, showing rise of Rs594.71 million. Compared to last year’s corresponding figure of Rs13,776.490 million, the current week’s figure is larger by Rs48,760.882 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 Rs53,867.369 million, similar to preceding week’s figure. The current week’s figure is smaller by Rs483.916 million over last year’s corresponding figure of Rs54,351.285 region.

There was an inflow of Rs3,859 948 minion in the industrial sector during the week under review, depicting a decrease of Rs20.029 million over previous week’s Rs3,879.977 million. Compared to last year’s corresponding figure of Rs4,796 397 million, the current week’s figure is lower by Rs936 899 million.

The export sector received Rs48,851.110 million over previous week’s figure of Rs46,280.193 million, showing a rise of Rs2,580.917 minion. Current week’s figure was lower by Rs30,156,154 million over last year’s corresponding figure of Rs79,017.264 million.

According to the weekly statement of position of scheduled banks for the week ended December 01, 2001, the sum of demand and time liabilities continued to rise, due to an increase in both demand and time deposits in the week. The sum total stood at Rs1,327,496 million against preceding week’s Rs1,321,392 million, showing an increase of Rs6,104 million. As compared to me total deposits of Rs1,201,302 million in the corresponding period last year, current week’s deposits were higher by Rs126,194 million.

During the week under review, demand deposits decreased to Rs587,184 million, or by Rs4,465 million over previous week’s Rs591,649 million, but was higher against last year’s corresponding figure of Rs.523,864 million by Rs.6,332 million.

In the current week, time deposits were higher over the preceding week, and against the corresponding week last year. At Rs740,312 million it was higher by Rs10,569 million over previous week’s Rs729,743 million, and by Rs62,874 million, over test year’s corresponding figure of Rs677,438 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities declined further in the current week. At Rs116,705 million it was lower by Rs5,947 million over preceding week’s Rs122,652 million. Compared to last year’s corresponding figure of Rs154,034 million, the current week’s figure is lower by Rs37,329 million.

Scheduled banks borrowings from banks abroad stood at Rs15,256 million in the current week, as against Rs15,360 million a week go, showing a decline of Rsl04 million. It was lower by Rs20,156 million over last year’s corresponding figure of Rs35,412 million.

Money at call and short notice in Pakistan showed a decline in the week under review. It stood at Rs48,888 million, showing a fall of Rs2,800 million over the preceding week’s Rs51,688 million. Current week’s figure was higher by Rs12,277 million against the last year’s corresponding figure of Rs36,611 million.