On March 27, the State Bank of Pakistan (SBP) mopped up Rs8 billion from the money market through the sale of long-term bonds.

The auction of Pakistan Investment Bonds had attracted bids worth Rs17 billion, of which the central bank accepted Rs8 billion and scrapped the rest.

Bankers said the SBP drained out Rs2.66 billion and Rs5.35 billion, respectively, through the sale of three-year and five-year bonds. They said the central bank sold the three-year bonds at a cut-off price of Rs101.55 per Rs100 and five-year bonds at Rs101.95. This means a slightly lower return on these bonds. The scripless bonds carry a fixed coupon rate of 9 per cent and 10 per cent but investors are allowed to price their bids at discount or premium.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended March 6, 2002, both notes in circulation and those issued continued to decline in the week under review. Notes in circulation stood at Rs466,735.762 million against preceding weeks Rs473,598.861 million, showing, a fall of Rs6,863.99 million. When compared to the corresponding week a year ago when it was Rs421,307.560 million, the current week’s figure is higher by Rs45,428.202 million.

Total notes issued also depicted a decline in the current week. At Rs466,858.596 million it was smaller by Rs6,884.944 million over a week earlier figure of Rs473,743.540 million. In the corresponding week last year it amounted to Rs421,488.554 million, which shows current week’s figure to be higher by Rs45,370.042 million over last year’s figure.

Approved foreign exchange fell in the week under review as against an increase recorded a week ago. It stood at Rs172,096.655 million, showing a decline of Rs963.92 million over previous week’s Rs173,060.575 million. When compared to, last year’s corresponding figure of Rs57,667.125 million, the current week’s figure is substantially higher by Rs114,429.53 billion.

Balance held outside Pakistan in approved foreign exchange, recorded a rise in the week under review. It stood at Rs58,255.664 million over preceding week’s figure of Rs57,250.311 million, showing a rise of Rs1,005.353 million. Compared to last year’s corresponding figure of Rs15,440.016 million, the current week’s figure is larger by Rs42,815.648 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 Rs54,049.441 million, against preceding week’s figure of Rs54,141.441 million, showing a fall of Rs92 million. The current week’s figure is larger by Rs278.S82 million over last year’s corresponding figure of Rs54,328.023 million.

There was an inflow of Rs3,643.058 million to the industrial sector dung the week under review, depicting a decline of Rs4.52 million over previous week’s Rs3,647.578 million. Compared to last year’s corresponding figure of Rs4,521.340 million, the current week’s figure is lower by Rs878.282 million.

The export sector received Rs54,371.155 million over previous week’s figure of Rs53,004.772 million, showing a rise of Rs1,366.383 million. Current week’s figure was lower by Rs24,020.181 million over last year’s corresponding figure of Rs78,391.336 million.

According to the weekly statement of position of scheduled banks for the week ended March 16, the sum of demand and time liabilities rose in the week under review. The sum total stood at Rs1,400,281 million against preceding week’s Rs1,392,254 million, showing a rise of Rs8,027 million. As compared to the total deposits of Rs1.227,879 million in the corresponding period last year, current week’s deposits were higher by Rs172,402 million.

During the week under review, demand deposits rose to Rs620,026 million, or by Rs1407 million over previous week’s Rs618,619 million, and was also higher against last year’s corresponding figure of Rs527,134 million by Rs92,892 million.

In the current week, time deposits were also higher over the preceding week, and against the corresponding week last year. At Rs780,255 million it was larger by Rs6,620 million cover previous week’s Rs773,635 million, and by Rs79,510 million, over last Year’s corresponding figure of Rs700,745 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs124,486 million it was larger by Rs3,685 million over preceding week’s Rs120.801 million. Compared to last year’s corresponding figure of Rs142,926 million, the current week’s figure is also lower by Rs18,440 million.

Scheduled banks borrowings from banks abroad stood at Rs13,865 million in the current week, as against Rs14,441 million a week ago, showing a fall of Rs576 million. It was larger by Rs393 million over last year’s corresponding figure of Rs14,258 million.

Money at call and short notice in Pakistan showed a fall in the week under review. It stood at Rs45,593 million, a decline of Rs3,030 million over preceding week’s Rs48,623 million. When compared to last year’s corresponding figure of Rs42,790 million, the current figure is higher by Rs2,803 million.

Scheduled banks advances including bills purchased and discounted, fell further in the week under review. At Rs973,906 million it was lower by Rs1,436 million over preceding week’s Rs975,342 million. Compared to the corresponding figure a year ago, when advance were to the tune of Rs921,944 million, the current week’s advances are higher by Rs51,962 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities continued to rise in the week under review. Such investment amounted to Rs377,481 million, arise of Rs7,269 million over previous week’s Rs370,212 million.