January 13, 2003	Monday	Ziqa'ad 9, 1423

The State Bank of Pakistan has lowered the cut off yield on six-month Treasury bills by 46 basis points to 3.94 per cent. In the week it sold Rs33.8 billion worth of six-month bills, against a target of Rs32 billion.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended December 28, 2002, both notes in circulation and those issued which had declined a week earlier, fell further in the week. Notes in circulation stood at Rs518,429.296 million against earlier week’s figure of Rs525,328.587 million, showing a fall of Rs6,899.291 million. When compared to the corresponding week a year ago when it was Rs457,545.727 million, the current week’s figure is higher by Rs60,883.569 million.

Total notes issued also recorded a decline in the current week. At Rs518,605.790 million it was smaller by Rs.6,906.652 million over the figure of Rs525,512.442 million recorded a week earlier. In the corresponding week last year it amounted to Rs457,717.272 million, which shows current week’s figure to be higher by Rs60,888.518 million over last year’s figure.

Approved foreign exchange rose further in the week to Rs398,620.196 million, larger by Rs10,822.193 million over preceding week’s figure of Rs387,738.003 million recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs128,576.940 million, the current week’s figure was higher by Rs270,043.256 million.

Balances held outside Pakistan in approved foreign exchange increased further in the week under review. It stood at Rs69,236.587 million over preceding week’s figure of Rs60,274.416 million, showing a rise of Rs8,962.171 million. Compared to last year’s corresponding figure of Rs90,552.430 million, the current week’s figure is however, lower by Rs21,315.843 million.

Loans and advances of scheduled banks to the three sectors - agricultural, industrial and export showed a mixed picture in the week under review. The agricultural sector received Rs54,136.874 million, against preceding week’s figure of Rs54,064.188 million, showing a rise of Rs72.686 million. The current week’s figure is larger by Rs359.505 million over last year’s corresponding figure of Rs53,777.369 million.

There was an inflow of Rs3,047.612 million to the industrial sector during the week under review, depicting a decline of Rs131.08 million over previous week’s Rs3,178.692 million. When compared to last year’s corresponding figure of Rs3,828.618 million, the current week’s figure is lower by Rs781.006 million. The export sector received Rs45,463.112 million over previous week’s figure of Rs45,042.306 million, showing a rise of Rs420.806 million. Current week’s figure was lower by Rs4,749.297 million over last year’s corresponding figure of Rs50,212.409 million.

According to the weekly statement of position of scheduled banks for the week ended December 28, 2002, the sum of demand and time liabilities maintained the increase in the week under review. The sum total stood at Rs1,607,749 million against preceding week’s Rs1,607,537 million, showing a rise of Rs212 million. As compared to the total deposits of Rs1,366,337 million in the corresponding period last year, current week’s deposits were higher by Rs241,412 million.

During the week under review both type of deposits rose. Demand deposits rose to Rs729,134 million, or by Rs10,626 million over previous week’s Rs718,508 million, and was higher against last year’s corresponding figure of Rs603,926 million by Rs125,208 million.

In the current week, time deposits were lower over the preceding week but higher against the corresponding week last year. At Rs878,615 million, it was lower by Rs10,414 million over previous week’s Rs889,029 million, but was higher by Rs116,204 million, over last year’s corresponding figure of Rs762,411 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities showed an increase in the current week. At Rs136,624 million it was larger by Rs411 million over preceding week’s Rs136,213 million. Compared to last year’s corresponding figure of Rs119,490 million, the current week’s figure is higher by Rs17,134 million.

Scheduled banks borrowings from banks abroad stood at Rs15,833 million in the current week, as against Rs14,590 million a week ago, showing a rise of Rs1,243 million. It was smaller by Rs544 million over last year’s corresponding figure of Rs16,387 million.

Money at call and short notice in Pakistan rose in the week under review. It stood at Rs30,218 million, a rise of Rs578 million over preceding week’s Rs30,796 million. When compared to last year’s corresponding figure of Rs42,659 million, the current figure is lower by Rs12,441 million.