The State Bank of Pakistan on January 30, mopped up Rs17 billion from the interbank market; Rs10 billion was drained out through two-week repo of T-bills at 1.1 per cent and Rs7 billion through four-week repo at 1.25 per cent. The OMO had attracted total bids of Rs23.1 billion.

The second auction of the recently launched 15 and 20-year bonds will be held in April 2004, along with 3, 5 and 10-year maturity. The State Bank of Pakistan sold Rs6.2 billion of these bonds at the first auction held on January 19.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended January 24, 2004, both notes in circulation and those issued declined in the week under review.

Notes in circulation stood at Rs607,665.925 million against earlier week's figure of Rs610,063.765 million, showing a fall of Rs2,397.84 million. When compared to the corresponding week a year ago when it was Rs513,376.561 million, the current week's figure is higher by Rs94,289.364 million.

Total notes issued also recorded a decline in the current week over preceding week's level. At Rs607,860.377 million it was smaller by Rs2,305.47 million over the figure of Rs610,165.847 million recorded a week earlier. In the corresponding week last year it amounted to Rs513,538.347 million, which shows current week's figure to be higher by Rs94,322.03 million over last year's corresponding figure.

Approved foreign exchange decreased further in the week, falling to Rs503,583.345 million or by Rs1,919.76 million over preceding week's figure of Rs505,503.105 million.

When compared to the corresponding week a year ago, when the figure was Rs445,451.330 million, the current week's figure was higher by Rs58,132.015 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs113,369.802 million over preceding week's figure of Rs112,758.792 million, showing an increase of Rs611.01 million.

Compared to last year's corresponding figure of Rs48,445.490 million, the current week's figure is substantially higher by Rs64,924.312 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 Rs55,603.139 million, against preceding week's figure of Rs55,303.139 million, showing a rise of Rs300 million.

The current week's figure is larger by Rs1,571.37 million over last year's corresponding figure of Rs54,031.769 million. There was an inflow of Rs2,541.016 million to the industrial sector during the week under review, depicting a decline of Rs0.138 million over previous week's Rs2,541.154 million. When compared to last year's corresponding figure of Rs2,992.163 million, the current week's figure is lower by Rs451.147million.

The export sector received Rs77,727.336 million against previous week's figure of Rs78,239.106 million, showing a fall of Rs511.77 million. Current week's figure was larger by Rs31,189.019 million over last year's corresponding figure of Rs46,538.317 million.