On January 22, the State Bank of Pakistan, in an open market operation, picked up Rs37.5 billion from a fairly liquid interbank market through one week and four-week repo of the Treasury bills.
The SBP raised Rs21.6 billion through one week repo and Rs.15.9 billion through four-week repo of T-bills at one per cent and 1.29 per cent, respectively. The OMO had generated demand for Rs39.6 billion worth TBs.
On January 21, the State Bank of Pakistan sold Rs10 billion Treasury Bills and rejected worth Rs44 billion. The auction had generated Rs54 billion bids; of which the SBP accepted Rs7 billion for 3 months TBs and Rs3 billion for one year. The weighted average yield was 1.48 per cent and 1.96 per cent respectively, almost unchanged over the previous level of 1.46 per cent and 1.99 per cent, respectively.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended January 17, 2004, both notes in circulation and those issued increased in the week under review. Notes in circulation stood at Rs610,063.765 million against earlier week's figure of Rs609,826.216 million, showing a rise of Rs237.549 million. When compared to the corresponding week a year ago when it was Rs519,667.614 million, the current week's figure is higher by Rs90,396.151 million.
Total notes issued also recorded an increase in the current week over preceding week's level. At Rs610,165.847 million it was larger by Rs194.173 million over the figure of Rs609,971.674 million recorded a week earlier. In the corresponding week last year it amounted to Rs519,860.686 million, which shows current week's figure to be higher by Rs90,305.161 million over last year's corresponding figure.
Approved foreign exchange decreased further in the week, falling to Rs505,503.105 million or by Rs6,446.951 million over preceding week's figure of Rs511,950.056 million. When compared to the corresponding week a year ago, when the figure was Rs439,160.461 million, the current week's figure was higher by Rs66,342.644 million.
Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs112,758.792 million over preceding week's figure of Rs107,383.679 million, showing an increase of Rs5,375.113 million. Compared to last year's corresponding figure of Rs50,475.831 million, the current week's figure is substantially higher by Rs62,282.961 million.
Loans and advances of scheduled banks to the three sectors - agricultural, industrial and export showed a mixed trend in the week under review. The agricultural sector received Rs55,303.139 million, against preceding week's figure of Rs55,353.139 million, showing a decline of Rs50 million. The current week's figure is larger by Rs1,271.37 million over last year's corresponding figure of Rs54,031.769 million.
There was an inflow of Rs2,541.154 million to the industrial sector during the week under review, depicting a decline of Rs1.079 million over previous week's Rs2,542.233 million. When compared to last year's corresponding figure of Rs3,001.666 million, the current week's figure is lower by Rs460.512 million.
The export sector received Rs78,239.106 million against previous week's figure of Rs77,216.020 million, showing a rise of Rs1,023.086 million. Current week's figure was larger by Rs30,937.502 million over last year's corresponding figure of Rs47,301.604 million.
According to the weekly statement of position of scheduled banks for the week ended January 10, 2004, the sum of demand and time liabilities declined in the week under review as both type of deposits fell. The sum total stood at Rs1,880,011 million against preceding week's Rs1,883,430 million, showing a fall of Rs.3,419 million. As compared to the total deposits of Rs1,582,078 million in the corresponding period last year, current week's deposits were higher by Rs297,933 million.
During the week under review, demand deposits stood at Rs944,286 million, a decline of Rs3,069 million over previous week's Rs947,355 million. It was however, higher against last year's corresponding figure of Rs718,778 million by Rs225,508 million.
In the current week, time deposits also dropped over preceding week's figure. At Rs935,725 million it was smaller by Rs350 million over previous week's Rs936,075 million but higher by Rs72,425 million, over last year's corresponding figure of Rs863,300 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities declined in the current week. At Rs152,342 million it was smaller by Rs786 million over preceding week's Rs153,128 million. Compared to last year's corresponding figure of Rs137,645 million, the current week's figure is higher by Rs14,697 million.
Scheduled banks borrowings from banks abroad stood at Rs18,946 million in the current week, as against Rs20,918 million a week ago, showing a fall of Rs1,972 million. It was larger by Rs5,826 million over last year's corresponding figure of Rs13,120 million.
Money at call and short notice in Pakistan increased in the week over previous week's figure. It stood at Rs24,669 million, a rise of Rs2,641 million over preceding week's Rs22,028 million. When compared to last year's corresponding figure of Rs37,036 million, the current figure is lower by Rs12,367 million.
Scheduled banks advances including bills purchased and discounted increased in the week under review. At Rs1,193,545 million it was larger by Rs254 million over preceding week's Rs1,193,291 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,004,046 million, the current week's advances are higher by Rs189,499 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. Such investments amounted to Rs742,599 million, a fall of Rs5,146 million over previous week's Rs747,745 million. Compared to last year's corresponding figure of Rs628,538 million, the current week's investment is higher by Rs114,061 million.
Total assets of scheduled banks decreased in the week under review. These stood at Rs2,691,178 million against previous week's Rs2,693,722 million, a fall of Rs2,544 million. Compared to last year's corresponding figure of Rs2,435,109 million it shows a rise of Rs256,069 million.
