The State Bank of Pakistan has cut the weighted average yield on Treasury Bills by 1.39-1.51 per cent in line with 1 per cent cut in its discount rate.

As a result, the weighted average yield has been reduced by 1.51 per cent to 6.13 per cent on 3 months T-bills, by 1.42 to 6.34 per cent on six month T-bills and on one year yield by 1.39 per cent to 6.81 per cent.

According to the Statement of Affairs of the State Bank of Pakistan for the week ended January 12, 2002, both notes in circulation and those issued rose in the week, as against a decline witnessed earlier. Notes in circulation stood at Rs459,243.395 million against preceding week’s Rs451,204.287 million, showing a rise of Rs8,039.1O8 million. When compared to the corresponding week a year ago when it was Rs416,707.420 million, the current week’s figure is higher by Rs42,535.975 million.

Total notes issued also showed a rise in the current week. At Rs459,387.347 million it was larger by Rs7,995.594million over a week earlier figure of Rs451,391.753 million. In the corresponding week last year it amounted to Rs416,896.622 million, which shows current week’s figure to be higher by Rs42,490.725 million over last year’s figure.

Approved foreign exchange showed a fall in the week under review. It stood at Rs136,018.825 million, declining by Rs7,825.99 million over the previous week’s Rs143,844.815 million When compared to last year’s corresponding figure of Rs48,982.533 million, the current week’s figure is substantially higher by Rs877O36.292 million.

Balances held outside Pakistan in approved foreign exchange, rose in the week under review. It stood at Rs75,064.987 million over preceding week’s figure of Rs67,768.605 million, showing a rise of Rs7,296.382 million. Compared to last year’s corresponding figure of Rs19,854.247 million, the current week’s figure is larger by Rs55,210.74 million.

Loans and advances of scheduled banks to the three sectors, agricultural, industrial and export show a mixed picture in the week under review. The agricultural sector received Rs53,728.118 million, similar to preceding week’s figure. The current week’s figure is smaller by Rs1,263.624 million over last year’s corresponding figure of Rs54,991.742 million.

There was an inflow of Rs3,754.043 million in the industrial sector during the week under review, depicting a decline of Rs15.1 million over previous week’s Rs3,769.143 million. Compared to last year’s corresponding figure of Rs4,646.857 million, the current week’s figure is lower by Rs892.814 million.

The export sector received Rs46,547.809 million over previous week’s figure of Rs50,212.409 million, showing a fall of Rs3,664.6 million. Current week’s figure was lower by Rs32,859.566 million over last year’s corresponding figure of Rs79,407.375 million.

According to the weekly statement of position of scheduled banks for the week ended January 05, 2002, the sum of demand and time liabilities declined, due to a fall in demand deposits in the week. The sum total stood at Rs1,359,441 million against preceding week’s Rs1,366,337 million, showing a decline of Rs6,896 million. As compared to the total deposits of Rs1,209,998 million in the corresponding period last year, current week’s deposits were higher by Rs149,443 million.

During the week under review, demand deposits declined to Rs591,152 million or by Rs12,774 million over previous week’s Rs603,926 million, and was also higher against last year’s corresponding figure of Rs522,841 million by Rs68,311 million.

In the current week, time deposits were higher over the preceding week, and against the corresponding week last year. At Rs768,289 million it was higher by Rs5,878 million over previous week’s Rs762,411 million, and by Rs81,132 million, over last year’s corresponding figure of Rs687,157 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities declined in the current week. At Rs113,621 million it was lower by Rs5,869 million over preceding week’s Rs119,490 million. Compared to last year’s corresponding figure of Rs144,609 million, the current week’s figure is lower by Rs30,988 million.

Scheduled banks borrowings from banks abroad stood at Rs15,315 million in the current week, as against Rs16,387 million a week ago, showing a fall of Rs1,072 million. It was lower by Rs19,012 million over last year’s corresponding figure of Rs34,327 million.

Money at call and short notice in Pakistan showed a rise in the week under review. It stood at Rs46,167 million, showing an increase of Rs3,508 million over preceding week’s Rs42,659 million. When compared to last years corresponding figure of Rs35,173 million, the current figure is larger by Rs10,994 million.

Scheduled banks advances including bills purchased and discounted, also fell in the week under review. At Rs994,874 million it was lower by Rs23,006 million over preceding week’s Rs971,868 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs936,779 million, the current week’s advances are higher by Rs58,095 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities showed a rise in the week under review.