The State Bank of Pakistan conducted an open market operation on April 20, and sucked in Rs5.5 billion from the banking system through repo sale of the Treasury bills. With the outflow of this amount the overnight call rates rose to 1-1.5 per cent from 0.25-0.50 per cent.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended April 17, 2004, both notes in circulation and those issued decreased in the week under review.
Notes in circulation stood at Rs617,807.115 million against the earlier week's figure of Rs620,487.561 million, showing a fall of Rs2,680.446 million. When compared to the corresponding week a year ago when it was Rs524,694.027 million, the current week's figure is higher by Rs93,113.088 million.
Total notes issued also recorded a fall in the current week over preceding week's level. At Rs617,978.159 million it was smaller by Rs2,697.232 million over the figure of Rs620,675.391 million recorded a week earlier.
In the corresponding week last year it amounted to Rs524,858.853 million, which shows current week's figure to be higher by Rs93,119.306 million over last year's corresponding figure.
Approved foreign exchange decreased in the week, falling to Rs491,392.457 million or by Rs5,179.01 million over preceding week's figure of Rs496,571.467 million. When compared to the corresponding week a year ago, when the figure was Rs451,520.644 million, the current week's figure was higher by Rs39,871.813 million.
Balances held outside Pakistan in approved foreign exchange rose in the week under review. It stood at Rs152,729.083 million over preceding week's figure of Rs151,509.556 million, showing a rise of Rs1,219.527 million. Compared to last year's corresponding figure of Rs94,831.162 million, the current week's figure is substantially higher by Rs57,897.921 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 Rs55,655.539 million, similar to preceding week's figure. The current week's figure is larger by Rs1,745.466 million over last year's corresponding figure of Rs53,910.073 million.
There was an inflow of Rs2,370.170 million to the industrial sector during the week under review, against preceding week's figure of Rs2,380.012 million showing a fall of Rs9.842 million. When compared to last year's corresponding figure of Rs2,933.903 million, the current week's figure is lower by Rs563.733 million.
The export sector received Rs81,933.073 million against the previous week's figure of Rs80,335.402 million, showing a rise of Rs1,597.671 million. Current week's figure was larger by Rs36,230.224 million over last year's corresponding figure of Rs45,702.849 million.
According to the weekly statement of position of scheduled banks for the week ended April 10, 2004, the sum of demand and time liabilities increased in the week under review. The sum total stood at Rs1,949,699 million against preceding week's Rs1,944,949 million, showing a rise of Rs4,750 million. As compared to the total deposits of Rs1,645,195 million in the corresponding period last year, current week's deposits were higher by Rs304,504 million.
During the week under review, demand deposits stood at Rs965,132 million, a fall of Rs1,921 million over previous week's Rs967,053 million. It was however, higher against last year's corresponding figure of Rs749,462 million by Rs215,670 million.
However, time deposits increased in the current week over preceding week's figure. At Rs984,567 million it was larger by Rs6,671 million over previous week's Rs977,896 million and by Rs88,834 million over last year's corresponding figure of Rs895,733 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs151,943 million it was larger by Rs360 million over preceding week's Rs151,583 million. Compared to last year's corresponding figure of Rs129,520 million, the current week's figure is higher by Rs22,423 million.
Scheduled banks borrowings from banks abroad stood at Rs5,567 million in the current week, as against Rs4,268 million a week ago, showing a rise of Rs1,299 million. It was however, smaller by Rs8,845 million over last year's corresponding figure of Rs14,412 million.
Money at call and short notice in Pakistan increased in the week over previous week's figure. It stood at Rs30,777 million, a rise of Rs2,048 million over preceding week's Rs28,729 million. When compared to last year's corresponding figure of Rs23,693 million, the current figure is higher by Rs7,084 million.
Scheduled banks advances including bills purchased and discounted increased in the week under review. At Rs1,215,067 million it was larger by Rs2,678 million over preceding week's Rs1,212,389 million.
