June 30, 2003	Monday	Rabi-us-Sani 29,1424

On June 25, at the six-month Treasury bill auction, the State Bank of Pakistan received total bids worth Rs19.375 billion. It accepted only Rs1.5 billion and rejected the rest. The SBP wants the banks to participate aggressively in the upcoming auction of long-term bonds.

The bids were accepted at a cut off yield of 1.67 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 14, 2003, both notes in circulation and those issued increased in the week under review. Notes in circulation stood at Rs539,573.064 million against earlier week’s figure of Rs539,546.028 million, showing a rise of Rs27.036 million. When compared to the corresponding week a year ago when it was Rs472,825.548 million, the current week’s figure is higher by Rs66,747.516 million.

Total notes issued also recorded a rise in the current week. At Rs539,745.935 million it was larger by Rs38.132 million over the figure of Rs539,707.803 million recorded a week earlier. In the corresponding week last year it amounted to Rs473,017.649 million, which shows current week’s figure to be higher by Rs66,728.286 million over last year’s figure.

Approved foreign exchange also increased in the week, rising to Rs466,304.689 million, or by Rs1,940.601 million over preceding week’s figure of Rs464,364.088 million. When compared to the corresponding week a year ago, when the figure was Rs219,622.444 million, the current week’s figure was higher by Rs246,682.245 million.

Balances held outside Pakistan in approved foreign exchange showed an increase in the week under review. It stood at Rs92,723.354 million over preceding week’s figure of Rs92,667.882 million, showing a rise of Rs55.472 million. Compared to last year’s corresponding figure of Rs60,598.086 million, the current week’s figure is substantially higher by Rs32,125.268 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 Rs54,504.743 million against preceding week’s figure of Rs54,524.743 million, showing a decline of Rs20.0 million. The current week’s figure is smaller by Rs85.1 million over last year’s corresponding figure of Rs54,589.843 million.

There was an inflow of Rs2,842.576 million to the industrial sector during the week under review, depicting a decline of Rs27.678 million over previous week’s Rs2,870.254 million. When compared to last year’s corresponding figure of Rs3,455.787 million, the current week’s figure is lower by Rs613.211 million.

The export sector received Rs55,499.845 million against previous week’s figure of Rs55,524.472 million, showing a fall of Rs24.627 million. Current week’s figure was smaller by Rs3,239.646 million over last year’s corresponding figure of Rs58,739.491 million.

According to the weekly statement of position of scheduled banks for the week ended June 14, 2003, the sum of demand and time liabilities continued to rise in the week under review. The sum total stood at Rs1,711,834 million against preceding week’s Rs1,702,439 million, showing a rise of Rs9,395 million. As compared to the total deposits of Rs1,438,080 million in the corresponding period last year, current week’s deposits were higher by Rs273,754 million.

During the week under review, both demand and time deposits rose. Demand deposits rose to Rs795,950 million, showing a rise of Rs4,082 million over previous week’s Rs791,868 million. It was also higher against last year’s corresponding figure of Rs637,528 million by Rs158,422 million.

In the current week, time deposits were higher both over preceding week and against the corresponding week last year. At Rs915,884 million, it was larger by Rs5,660 million over previous week’s Rs910,224 million and by Rs115,332 million, over last year’s corresponding figure of Rs800,552 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities increased in the current week. At Rs135,490 million it was larger by Rs1,104 million over preceding week’s Rs134,386 million. Compared to last year’s corresponding figure of Rs135,504 million, the current week’s figure is higher by Rs14 million.

Scheduled banks borrowings from banks abroad stood at Rs18,161 million in the current week, as against Rs18,232 million a week ago, showing a fall of Rs71 million. It was larger by Rs4,937 million over last year’s corresponding figure of Rs13,224 million.

Money at call and short notice in Pakistan declined in the week under review. It stood at Rs25,551 million, a fall of Rs5,254 million over preceding week’s Rs30,805 million. When compared to last year’s corresponding figure of Rs37,317 million, the current figure is lower by Rs11,766 million.

Scheduled banks advances including bills purchased and discounted, increased further in the week under review. At Rs1,043,682 million it was larger by Rs943 million over preceding week’s Rs1,042,739 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs948,116 million, the current week’s advances are higher by Rs95,566 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities decreased in the current week when compared to preceding week’s level. Such investments amounted to Rs691,726 million, a fall of Rs18,792 million over previous week’s Rs710,518 million. Compared to last year’s corresponding figure of Rs435,677 million, the current week’s investment is higher by Rs256,049 million.