On October 23, the State Bank of Pakistan sold Rs12.2 billion bonds to mop up Rs13.5 billion from a fairly liquid market. Banks and corporate funds bought these bonds for up to Rs110.75 per every Rs100, thus accepting 9.3 per cent yield per year against the fixed coupon rate of 11 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended October 19, 2002, both notes in circulation and those issued rose in the week under review. Notes in circulation stood at Rs471,149.839 million against the earlier week’s figure of Rs469,901.246m, showing a rise of Rs1,248.593m. When compared to the corresponding week a year ago when it was Rs418,270.680m, the current week’s figure is higher by Rs52,879.159m.

Total notes issued also recorded a rise in the current week. At Rs471,254.163m it was larger by Rs1,192.03m over the figure of Rs470,062.133m recorded a week earlier. In the corresponding week last year it amounted to Rs418,414.033m, which shows current week’s figure to be higher by Rs52,840.13m over last year’s figure.

Approved foreign exchange including balances held outside Pakistan stood at Rs338,448.523m, larger by Rs11.238.27m over the preceding week’s figure of Rs327,210.253m recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs119,085.852m, the current week’s figure was higher by Rs219,362.671m.

Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs47,698.470m over the preceding week’s figure of Rs54,419.727m, showing a fall of Rs6,721.257m. Compared to last year’s corresponding figure of Rs20,165.470m, the current week’s figure is larger by Rs27,533.00m.

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 Rs53,855.026m, similar preceding week’s figure. The current week’s figure is smaller by Rs458.764m over last year’s corresponding figure of Rs54,313.790m.

There was an inflow of Rs3,269.107m to the industrial sector during the week under review, depicting a decline of Rs14.764m over previous week’s Rs3,283.871m. When compared to last year’s corresponding figure of Rs3,957.037m, the current week’s figure is lower by Rs687.93m.

The export sector received Rs49,172.323m over previous week’s figure of Rs48,881.005m, showing a fall of Rs291.318m. Current week’s figure was lower by Rs8,962.904m over last year’s corresponding figure of Rs58,135.227m.

According to the weekly Statement of Position of scheduled banks for the week ended October 12, 2002, the sum of demand and time liabilities continued the downward trend in the week under review. The sum of demand and time liabilities stood at Rs1,534,748m, showing a decline of Rs322m over the preceding week’s figure of Rs1,535,070m. As compared to the total deposits of Rs1,286,932m in the corresponding period last year, the current week’s deposits were higher by Rs247,816m.

During the week under review, demand deposits increased by Rs1,906m to Rs668,189m, over previous week’s figure of Rs666,283m, and was higher against last year’s corresponding figure of Rs561,348m by Rs106,841m.

Time liabilities declined by Rs2,228m to Rs866,559m against preceding week’s Rs868,787m. Compared to last year’s corresponding figure of Rs725,584m, the current week’s figure is higher by Rs140,975m.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs131,718m it was higher by Rs4,272m over preceding week’s Rs127,446m. Compared to last year’s corresponding figure of Rs128,295m, the current week’s figure is lower by Rs3,423m.

Scheduled banks borrowings from banks abroad stood at Rs15,104m in the current week, as against Rs17,058m a week ago, showing a rise of Rs1,954m. It was lower by Rs38m over last year’s corresponding figure of Rs15,066m.

Money at call and short notice in Pakistan increased in the week under review. It stood at Rs42,236m, showing a rise of Rs3,817m over preceding week’s Rs38,419m. When compared to last year’s corresponding figure of Rs45,645m, the current week’s figure is however, lower by Rs3,409m.

Scheduled banks advances including bills purchased and discounted, picked up in the week under review. At Rs940,308m it was larger by Rs2,731m over preceding week’s figure of Rs937,577m. Compared to the corresponding figure a year ago, when advances were to the tune of Rs928,579m, the current week’s advances are higher by Rs11,729m.

Scheduled banks investment in central government securities, Treasury bills and other approved securities increased in the week under review. Such investments amounted to Rs595,821m, showing a rise of Rs8,799m over the previous week’s Rs587,022m. Compared to last year’s corresponding figure of Rs304,978m, the current week’s investment is higher by Rs290,843m.