On October 8, banks borrowed Rs15 billion from the State Bank discount window to meet their liquidity requirements. A day earlier they had resorted to Rs12.1 billion due to the ongoing liquidity shortages.

Bankers feel the liquidity crunch currently faced by them may be over or will at least subside by next week, with an inflow of Rs17 billion through the maturity of Treasury bills sold earlier by the central bank.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended September 14, 2002, both notes in circulation and those issued rose in the week under review. Notes in circulation stood at Rs459,581.323 million against the earlier week’s figure of Rs458,439.601 million, showing a rise of Rs1,141.722 million. When compared to the corresponding week a year ago when it was Rs395,510.348 million, the current week’s figure is higher by Rs64,070.975 million.

Total notes issued also recorded a rise in the current week. At Rs459,784.741 million it was larger by Rs1,193.003 million over the figure of Rs458,591.738 million recorded a week earlier. In the corresponding week last year it amounted to Rs395,642.090 million, which shows current week’s figure to be higher by Rs64,142.651 million over last year’s figure.

The approved foreign exchange including balances held outside Pakistan stood at Rs302,895.358 million, larger by Rs13,229.192 million over preceding week’s figure of Rs289,666.166 million recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs130,853.134 million, the current week’s figure was higher by Rs172,042.224 million.

Balances held outside Pakistan in approved foreign exchange declined substantially in the week under review. It stood at Rs45,199.522 million over preceding week’s figure of Rs57,085.438 million, showing a fall of Rs11,885.916 million. Compared to last year’s corresponding figure of Rs5,651.960 million, the current week’s figure is larger by Rs39,547.562 million.

Loans and advances of the scheduled banks to three sectors - agricultural, industrial and export show a mixed picture in the week under review. The agricultural sector received Rs53,855.026 million, similar preceding week’s figure. The current week’s figure is smaller by Rs709.954 million over the last year’s corresponding figure of Rs54,564.980 million.

There was an inflow of Rs3,320.773 million to the industrial sector during the week under review, depicting a decline of Rs2.153 million over the previous week’s Rs3,322.926 million. When compared to the last year’s corresponding figure of Rs4,061.432 million, the current week’s figure is lower by Rs740.659 million.

The export sector received Rs45,640.929 million over the previous week’s figure of Rs42,215.674 million, showing a rise of Rs3,425.255 million. Current week’s figure was lower by Rs15,111.879 million over last year’s corresponding figure of Rs60,752.808 million.