June 9, 2003	Monday	Rabi-us-Sani 8, 1424

On June 3, the State Bank of Pakistan mopped up Rs15 billion from an excessively liquid inter-bank market, through an open market operation. This amount was drained out when the bank conducted one-week repo of Treasury bills at 1.20 per cent. The State Bank had received total bids worth Rs22.5 billion.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended May 24, 2003, both notes in circulation and those issued declined in the week under review after having risen in the preceding few weeks. Notes in circulation stood at Rs536,236.755 million against earlier week’s figure of Rs540,988.471 million, showing a fall of Rs4,751.716 million. When compared to the corresponding week a year ago when it was Rs463,135.960 million, the current week’s figure is higher by Rs73,100.795 million.

Total notes issued also recorded a fall in the current week. At Rs536,428.263 million it was smaller by Rs4,801.754 million over the figure of Rs541,230.077 million recorded a week earlier. In the corresponding week last year it amounted to Rs463,228.360 million, which shows current week’s figure to be higher by Rs73,199.903 million over last year’s figure.

Approved foreign exchange also declined in the week, falling to Rs457,315.765 million, smaller by Rs17,368.022 million over preceding week’s figure of Rs474,683.787 million. When compared to the corresponding week a year ago, when the figure was Rs222,835.940 million, the current week’s figure was higher by Rs234,479.825 million.

Balances held outside Pakistan in approved foreign exchange showed a substantial increase in the week under review. It stood at Rs98,179.881 million over preceding week’s figure of Rs80,573.405 million, showing a rise of Rs17,606.476 million. Compared to last year’s corresponding figure of Rs23,392.793 million, the current week’s figure is higher by Rs74,787.088 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 Rs54,764.073 million against preceding week’s figure of Rs54,264.073 million, showing a rise of Rs500.0 million. The current week’s figure is higher by Rs468.167 million over last year’s corresponding figure of Rs54,195.906 million.

There was an inflow of Rs2,891.720 million to the industrial sector during the week under review, depicting a decline of Rs13.051 million over previous week’s Rs2,904.771 million. When compared to last year’s corresponding figure of Rs3,566.048 million, the current week’s figure is lower by Rs674.328 million.

The export sector received Rs53,688.981 million against previous week’s figure of Rs50,727.080 million, showing a rise of Rs2,961.901 million. Current week’s figure was smaller by Rs4,505.547 million over last year’s corresponding figure of Rs58,194.528 million.

According to the weekly statement of position of scheduled banks for the week ended May 24, 2003, the sum of demand and time liabilities continued to rise in the week under review. The sum total stood at Rs1,686,124 million against preceding week’s Rs1,673,178 million, showing a rise of Rs12,946 million. As compared to the total deposits of Rs1,421,821 million in the corresponding period last year, current week’s deposits were higher by Rs264,303 million.

During the week under review, both demand and time deposits rose. Demand deposits rose to Rs780,144 million, showing a rise of Rs8,709 million over previous week’s Rs771,435 million. It was also higher against last year’s corresponding figure of Rs633,071 million by Rs147,073 million.

In the current week, time deposits were higher both over preceding week and against the corresponding week last year. At Rs905,980 million, it was larger by Rs4,237 million over previous week’s Rs901,743 million and by Rs117,230 million, over last year’s corresponding figure of Rs788,750 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities continued to increase in the current week. At Rs134,291 million it was larger by Rs3,235 million over preceding week’s Rs131,056 million. Compared to last year’s corresponding figure of Rs134,199 million, the current week’s figure is higher by Rs92 million.

Scheduled banks borrowings from banks abroad stood at Rs14,155 million in the current week, as against Rs15,520 million a week ago, showing a drop of Rs1,365 million. It was however, larger by Rs704 million over last year’s corresponding figure of Rs13,451 million.

Money at call and short notice in Pakistan increased in the week under review. It stood at Rs26,586 million, a rise of Rs.1,520 million over preceding week’s Rs25,066 million. When compared to last year’s corresponding figure of Rs38,008 million, the current figure is lower by Rs11,422 million.

Scheduled banks advances including bills purchased and discounted, increased in the week under review. At Rs1,027,481 million it was larger by Rs6,844 million over preceding week’s Rs1,020,637 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs943,770 million, the current week’s advances are higher by Rs83,711 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities declined in the current week when compared to preceding week’s level.