June 10, 2002	Monday	Rabi-ul-Awwal 28,1423

On June 3, the State Bank of Pakistan injected over Rs20 billion in the money market, against a demand of Rs.22.55 billion through its reverse repo open market operation.

The SBP conducted the OMO for one week and two weeks reverse repot The central bank was offered Rs17,650 million for one week repo, out of which Rs17,350 million on a 6.5 per cent rate of return was accepted. For two weeks, the SBP provided Rs3,000 million against a demand of Rs4,900 million on a 6.57 per cent rate of return.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 1, 2002, both notes in circulation and those issued declined further in the week under review. Notes in circulation stood at Rs460,085.120 million against earlier week’s figure of Rs463,135.960 million, showing a fall of Rs3,050.84 million. When compared to the corresponding week a year ago when it was Rs397,473.118 million, the current week’s figure is higher by Rs62,612.002 million.

Total notes issued also recorded a decrease in the current week. At Rs460,212.897 million it was smaller by Rs3,015.463 million over the figure of Rs463,228.360 million recorded a week earlier. In the corresponding week last year it amounted to Rs397,697.439 million, which shows current week’s figure to be higher by Rs62,515.458 million over last year’s figure.

Approved foreign exchange including balances held outside Pakistan stood at Rs225,678.130 million, larger by Rs.2842.19 million over preceding week’s figure of Rs222,835.940 million recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs64,976.657 million, the current week’s figure was higher by Rs160,701.473 million.

Balances held outside Pakistan in approved foreign exchange, again declined in the week under review. It stood at Rs21,875.289 million over preceding week’s figure of Rs23,392.793 million, showing a fall of Rs1,517.504 million. Compared to last year’s corresponding figure of Rs20,417.680 million, the current week’s figure is larger by Rs1,457.609 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 Rs.54,419.421 million, against preceding week’s figure of Rs54,195.906 million, showing a rise of Rs223.515 million. The current week’s figure is lower by Rs93.113 million over last year’s corresponding figure of Rs54,512.534 million.

There was an inflow of Rs3,560.005 million to the industrial sector during the week under review, depicting a decline of Rs6.043 million over previous week’s Rs3,566.048 million. When compared to last year’s corresponding figure of Rs4,349.141 million, the current week’s figure is lower by Rs789.136 million.

The export sector received Rs58,797.086 million over previous week’s figure of Rs58,194.528 million, showing a rise of Rs602.558 million. Current week’s figure was lower by Rs17,033.369 million over last year’s corresponding figure of Rs75,830.455 million.

According to the weekly Statement of Position of scheduled banks for the week ended May 24,2002, the sum of demand and time liabilities maintained the upward trend in the week under review, as both demand and times deposits recorded an increase. The sum total stood at Rs1,421,821 million against preceding week’s Rs1,420,750 million, showing a rise of Rs1,071 million. As compared to the total deposits of Rs1,240,757 million in the corresponding period last year, the current week’s deposits were higher by Rs181,064 million.

During the week under review, demand deposits rose to Rs633,071 million, or by Rs379 million over previous week’s Rs.632,692 million, and was also higher against last year’s corresponding figure of Rs537,181 million by Rs95,890 million.

Meanwhile, time liabilities grew by Rs692 million to Rs788,750 million against preceding week’s Rs788,058 million. Compared to last year’s corresponding figure of Rs703,576 million, the current week’s figure is higher by Rs85,174 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week, as against a fall witnessed earlier. At Rs134,199 million it was larger by Rs366 million over preceding week’s Rs133,833 million. Compared to last year’s corresponding figure of Rs140,297 million, the current week’s figure is lower by Rs6,098 million.

Scheduled banks borrowings from banks abroad stood at Rs13,451 million in the current week, as against Rs13,433 million a week ago, showing a rise of Rs18 million. It was lower by Rs889 million over last year’s corresponding figure of Rs14,340 million.

Money at call and short notice in Pakistan showed a further rise in the week under review. It stood at Rs38,008 million, showing a rise of Rs39 million over preceding week’s Rs38,047 million. When compared to last year’s corresponding figure of Rs27,896 million, the current week’s figure is higher by Rs10,112 million.

Scheduled banks advances including bills purchased and discounted, increased in the week under review. At Rs.943,770 million it was larger by Rs4,080 million over preceding week’s figure of Rs939,690 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs917,215 million, the current week’s advances are higher by Rs26,555 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities, declined in the week under review. Such investments amounted to Rs432,510 million, showing a fall of Rs5,379 million over previous week’s Rs437,889 million. Compared to last year’s corresponding figure of Rs294,198 million, the current week’s investment is higher by Rs132,933 million. Total assets of scheduled banks showed an increase in the week under review.