May 12, 2003	Monday	Rabi-ul-Awwal 9, 1424

ON May 7, the State Bank of Pakistan, injected Rs3.1 billion in the money market to bring down the high overnight rates, which had been hovering at around 6-7 per cent for the last five days.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended May 3, 2003, both notes in circulation and those issued rose in the week under review after having witnessed declines in the preceding two weeks. Notes in circulation stood at Rs523,561.975 million against earlier week’s figure of Rs519,776.417 million, showing a rise of Rs3,781.558 million. When compared to the corresponding week a year ago when it was Rs453,322.737 million, the current week’s figure is higher by Rs70,239.238 million.

Total notes issued also recorded a rise in the current week. At Rs523,561.975 million it was larger by Rs3,601.799 million over the figure of Rs519,960.176 million recorded a week earlier. In the corresponding week last year it amounted to Rs453,527.280 million, which shows current week’s figure to be higher by Rs70,034.695 million over last year’s figure.

Approved foreign exchange showed a further increase in the week rising to Rs460,357.191 million, larger by Rs9,056.392 million over preceding week’s figure of Rs451,300.799 million. When compared to the corresponding week a year ago, when the figure was Rs211,248.063 million, the current week’s figure was higher by Rs249,109.128 million.

Balances held outside Pakistan in approved foreign exchange showed a decline in the week under review. It stood at Rs92,199.102 million over preceding week’s figure of Rs95,441.216 million, showing a fall of Rs3,242.114 million. Compared to last year’s corresponding figure of Rs25,223.488 million, the current week’s figure is higher by Rs66,975.614 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 Rs54,292.073 million against preceding week’s figure of Rs53,892.073 million showing an increase of Rs400 million. The current week’s figure is higher by Rs412.568 million over last year’s corresponding figure of Rs53,879.505 million.

There was an inflow of Rs2,925.968 million to the industrial sector during the week under review, depicting a decline of Rs5.951 million over previous week’s Rs2,931.919 million. When compared to last year’s corresponding figure of Rs3,624.785 million, the current week’s figure is lower by Rs698.817 million.

The export sector received Rs46,320.498 million against previous week’s figure of Rs44,904.284 million, showing a rise of Rs1,416.214 million. Current week’s figure was smaller by Rs10,875.296 million over last year’s corresponding figure of Rs57,195.794 million.

According to the weekly statement of position of scheduled banks for the week ended April 26, 2003, the sum of demand and time liabilities continued to rise in the week under review. The sum total stood at Rs1,650,287 million against preceding week’s Rs1,645,276 million, showing a rise of Rs5,011 million. As compared to the total deposits of Rs1,401,969 million in the corresponding period last year, current week’s deposits were higher by Rs248,318 million.

During the week under review, both demand and time deposits rose. Demand deposits rose to Rs757,076 million, showing a rise of Rs1,548 million over previous week’s Rs755,528 million. It was also higher against last year’s corresponding figure of Rs626,946 million by Rs130,130 million.

In the current week, time deposits were higher both over preceding week and against the corresponding week last year. At Rs893,211 million, it was larger by Rs3,463 million over previous week’s Rs889,748 million and by Rs118,188 million, over last year’s corresponding figure of Rs775,023 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities decreased further in the current week. At Rs124,440 million it was smaller by Rs3,455 million over preceding week’s Rs127,895 million. Compared to last year’s corresponding figure of Rs133,287 million, the current week’s figure is lower by Rs8,847 million.

Scheduled banks borrowings from banks abroad stood at Rs15,447 million in the current week, as against Rs15,755 million a week ago, showing a drop of Rs308 million. It was however, larger by Rs595 million over last year’s corresponding figure of Rs14,852 million.

Money at call and short notice in Pakistan increased in the week under review. It stood at Rs24,832 million, a rise of Rs1,521 million over preceding week’s Rs23,311 million. When compared to last year’s corresponding figure of Rs39,627 million, the current figure is lower by Rs14,795 million.

Scheduled banks advances including bills purchased and discounted, continued to rise in the week under review. At Rs1,000,769 million it was larger by Rs2,521 million over preceding week’s Rs998,248 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs951,860 million, the current week’s advances are higher by Rs48,909 million.