April 7, 2003	Monday	Safar 4, 1424

The State Bank of Pakistan conducted the Treasury bill auction on April 2, in which it accepted the offer for 6-month treasury bills with the face value of Rs4.15 billion against the bid of Rs34.99 billion. The realized amount of the accepted T-bills is Rs4.116 billion, which is lower than the target of Rs5 billion fixed by the bank.

At the same time, cut off yield on 6-month T-bills also declined by 48 basis points from 2.17 per cent to 1.72 per cent per annum. The weighted average yield would be 1.639 per cent. The rate has fallen below the crucial mark of 2 per cent from above 6 per cent at the start of the current fiscal year. Currently the market estimates liquidity of over Rs10 billion. During the week, the overnight rates initiated around 2.5 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended March 22, 2003, both notes in circulation and those issued declined in the week under review. Notes in circulation stood at Rs524,669.831 million against earlier week’s figure of Rs532,065.928 million, showing a fall of Rs7,396.097 million. When compared to the corresponding week a year ago when it was Rs461,142.764 million, the current week’s figure is higher by Rs63,527.067 million.

Total notes issued also recorded a fall in the current week. At Rs524,835.450 million it was smaller by Rs7,414.877 million over the figure of Rs532,250.327 million recorded a week earlier. In the corresponding week last year it amounted to Rs461,251.785 million, which shows current week’s figure to be higher by Rs63,583.665 million over last year’s figure.

Approved foreign exchange declined in the week to Rs466,184.377 million, smaller by Rs6,043.099 million over preceding week’s figure of Rs472,227.476 million recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs170,835.747 million, the current week’s figure was higher by Rs295,348.630 million.

Balances held outside Pakistan in approved foreign exchange showed a further increase in the week under review. It stood at Rs77,407.076 million over preceding week’s figure of Rs71,327.762 million, showing a rise of Rs6,079.314 million. Compared to last year’s corresponding figure of Rs61,080.701 million, the current week’s figure is higher by Rs16,326.375 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 Rs54,028.074 million similar to preceding week’s figure. The current week’s figure is lower by Rs21.367 million over last year’s corresponding figure of Rs54,049.441 million.

There was an inflow of Rs2,976.549 million to the industrial sector during the week under review, depicting a decline of Rs5.454 million over previous week’s Rs2,982.003 million. When compared to last year’s corresponding figure of Rs3,604.385 million, the current week’s figure is lower by Rs627.836 million.

The export sector received Rs43,181.957 million against previous week’s figure of Rs42,963.414 million, showing a rise of Rs218.543 million. Current week’s figure was smaller by Rs11,954.564 million over last year’s corresponding figure of Rs55,136.521 million.

According to the weekly statement of position of scheduled banks for the week ended March 22, 2003, the sum of demand and time liabilities maintained the upward trend in the week under review. The sum total stood at Rs1,661,935 million against preceding week’s Rs1,650,110 million, showing a rise of Rs11,825 million. As compared to the total deposits of Rs1,398,641 million in the corresponding period last year, current week’s deposits were higher by Rs263,294 million.

During the week under review both demand and time deposits increased. Demand deposits rose to Rs757,106 million, showing a rise of Rs8,219 million over previous week’s Rs748,887 million. It was also, higher against last year’s corresponding figure of Rs621,329 million by Rs135,777 million.

In the current week, time deposits were higher over preceding week and against the corresponding week last year. At Rs904,829 million, it was larger by Rs3,606 million over previous week’s Rs901,223 million, and by Rs127,517 million, over last year’s corresponding figure of Rs777,312 million. Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities declined further in the current week. At Rs127,994 million it was smaller by Rs2,659 million over preceding week’s Rs130,653 million. Compared to last year’s corresponding figure of Rs126,326 million, the current week’s figure is higher by Rs1,668 million.

Scheduled banks borrowings from banks abroad stood at Rs14,192 million in the current week, as against Rs13,886 million a week ago, showing a rise of Rs306 million. It was larger by Rs462 million over last year’s corresponding figure of Rs13,730 million.

Money at call and short notice in Pakistan decreased in the week under review. It stood at Rs22,424 million, a fall of Rs2,152 million over preceding week’s Rs24,576 million. When compared to last year’s corresponding figure of Rs45,427 million, the current figure is lower by Rs23,003 million.

Scheduled banks advances including bills purchased and discounted, increased in the week under review. At Rs988,594 million it was larger by Rs3,634 million over preceding week’s Rs984,960 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs925,578 million, the current week’s advances are higher by Rs63,016 million.