12 January 2004	Monday	19 Ziqa'ad 1424

On January 7, the State Bank of Pakistan sold Rs8.3 billion worth of six-month Treasury-bills, exceeding the target of Rs5 billion at a cut-off yield of 1.71 per cent , slightly higher from 1.65 per cent at the last auction. The weighted average yield remained unchanged at 1.64 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended January 3, 2004, both notes in circulation and those issued declined further in the week under review. Notes in circulation stood at Rs595,802.100 million against earlier week's figure of Rs604,027.614 million, showing a fall of Rs8,225.514 million. Compared to the corresponding week a year ago when it was Rs511,609.148 million, the current week's figure is higher by Rs84,192.952 million.

Total notes issued also recorded a fall in the current week over preceding week's level. At Rs595,966.517 million it was smaller by Rs8,211.296 million over the figure of Rs604,187.813 million recorded a week earlier. In the corresponding week last year it amounted to Rs511,765.765 million, which shows current week's figure to be higher by Rs84,200.752 million over last year's corresponding figure.

Approved foreign exchange decreased in the week, falling to Rs513,960.444 million or by Rs90,227.369 million over preceding week's figure of Rs604,187.813 million. Compared to the corresponding week a year ago, when the figure was Rs414,044.460 million, the current week's figure was higher by Rs99,915.984 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs104,952.314 million over preceding week's figure of Rs91,162.400 million, showing an increase of Rs13,789.914 million. Compared to last year's corresponding figure of Rs62,189.310 million, the current week's figure is substantially higher by Rs42,763.004 million.

Loans and advances of scheduled banks to the three sectors - agricultural, industrial and export showed a decline in the week under review against the preceding week's figures. The agricultural sector received Rs55,353.139 million, against the preceding week's figure of Rs55,643.904 million, showing a decline of Rs290.765 million. The current week's figure is larger by Rs1,515.516 million over last year's corresponding figure of Rs53,837.623 million.

There was an inflow of Rs2,550.470 million to the industrial sector during the week under review, depicting a decline of Rs26.875 million over previous week's Rs2,577.345 million. When compared to last year's corresponding figure of Rs3,009.595 million, the current week's figure is lower by Rs459.125 million.

The export sector received Rs77,244.551 million against previous week's figure of Rs77,311.932 million, showing a fall of Rs67.381 million. Current week's figure was larger by Rs31,274.761 million over last year's corresponding figure of Rs45,969.790 million.

According to the weekly statement of position of scheduled banks for the week ended December 28, 2003, the sum of demand and time liabilities increased in the week under review as both type of deposits rose. The sum total stood at Rs1,866,439 million against preceding week's Rs1,846,427 million, showing a rise of Rs20,012 million. As compared to the total deposits of Rs1,607,749 million in the corresponding period last year, current week's deposits were higher by Rs258,690 million.

During the week under review, demand deposits to Rs934,336 million, a rise of Rs12,543 million over previous week's Rs921,793 million. It was also higher against last year's corresponding figure of Rs729,134 million by Rs205,202 million.

In the current week, time deposits also rose over preceding week's figure. At Rs932,103 million it was larger by Rs7,469 million over previous week's Rs924,634 million and higher by Rs53,488 million, over last year's corresponding figure of Rs878,615 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities increased in the current week. At Rs154,061 million it was larger by Rs1,983 million over preceding week's Rs152,078 million. Compared to last year's corresponding figure of Rs136,624 million, the current week's figure is higher by Rs17,437 million.

Scheduled banks borrowings from banks abroad stood at Rs21,943 million in the current week, as against Rs20,511 million a week ago, showing a rise of Rs1,432 million. It was larger by Rs6,110 million over last year's corresponding figure of Rs15,833 million.