December 15, 2003	Monday	Shawwal 20, 1424

On December 10, the State Bank of Pakistan sold Rs300 million worth of six month T-bills against the target of Rs3 billion and managed to keep the cut off yield unchanged at 1.65 per cent.

Only 10 per cent of the targeted amount selling was seen as a sign from the SBP that interest rates were not going to rise.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended December 6, 2003, both notes in circulation and those issued declined in the week under review, after having risen these past few weeks. Notes in circulation stood at Rs621,125.432 million against earlier week’s figure of Rs626,337.344 million, showing a fall of Rs5,211.912 million. When compared to the corresponding week a year ago, when it was Rs528,052.705 million, the current week’s figure is higher by Rs93,072.727 million.

Total notes issued also recorded a fall in the current week over preceding week’s level. At Rs621,275.467 million it was smaller by Rs5,212.045 million over the figure of Rs626,487.512 million recorded a week earlier. In the corresponding week last year it stood at Rs528,226.129 million, which shows current week’s figure to be higher by Rs93,049.338 million over last year’s corresponding figure.

Approved foreign exchange increased further in the week, rising to Rs509,787.455 million or by Rs21,349.962 million over preceding week’s figure of Rs488,437.493 million. When compared with the corresponding week a year ago, when the figure was Rs387,154.526 million, the current week’s figure was higher by Rs122,632.929 million.

Balances held outside Pakistan in approved foreign exchange declined in the week under review. It stood at Rs97,513.965 million over preceding week’s figure of Rs118,559.221 million, showing a fall of Rs21,045.256 million. Compared to last year’s corresponding figure of Rs40,899.364 million, the current week’s figure is substantially higher by Rs56,614.601 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 Rs55,093.904 million, against preceding week’s Rs55,447.895 million, showing a decline of Rs353.991 million. The current week’s figure is larger by Rs769.716 million over last year’s corresponding figure of Rs54,324.188 million.

There was an inflow of Rs2,666.445 million to the industrial sector during the week under review, depicting a decline of Rs18.412 million over previous week’s Rs2,684.857 million. When compared to last year’s corresponding figure of Rs3,186.562 million, the current week’s figure is lower by Rs520.117 million.

The export sector received Rs73,449.005 million against previous week’s figure of Rs72,894.399 million, showing a rise of Rs554.606 million. Current week’s figure was larger by Rs32,804.425 million over last year’s corresponding figure of Rs45,644.580 million.