01 November 2004	Monday	17 Ramazan 1425

On October 28, the State Bank of Pakistan mopped up Rs25.95 billion from a liquid inter-bank market. The State Bank mopped up Rs11.45 billion through one-week repo of Treasury bills and Rs14.5 billion through two-week repo at 2 per cent and 2.45 per cent respectively. The open market operation had generated Rs29.7 billion Treasury bills -- Rs13.2 billion in one-week repo and Rs16.5 billion in two-week repo.

Market liquidity had increased due to huge inflow of Rs85 billion through maturities of previously sold T-bills. This was however, offset by the settlement of previous auction of T-bills when SBP had sold Rs20.35 billion and a scheduled outflow of Rs14 billion.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended October 16, 2004, both notes in circulation and those issued increased in the week. Notes in circulation stood at Rs666,481.539 million against earlier week's figure of Rs645,350.694 million, a rise of Rs21,130.849 million. When compared to the corresponding week a year ago when it was Rs557,156.091 million, the current week's figure is higher by Rs109,325.448 million.

Total notes issued also recorded a rise in the current week over preceding week's level. At Rs666,624.567 million it was larger by Rs21,091.876 million over the figure of Rs645,532.691 million recorded a week earlier. In the corresponding week last year it amounted to Rs557,256.998 million, which shows current week's figure to be higher by Rs109,367.569 million over last year's corresponding figure.

Approved foreign exchange increased in the week, rising to Rs501,082.601 million or by Rs98,789.232 million over preceding week's figure of Rs402,293.369 million. When compared to the corresponding week a year ago, when the figure was Rs480,630.162 million, the current week's figure was higher by Rs20,452.439 million.

Balances held outside Pakistan in approved foreign exchange declined in the week under review. It stood at Rs115,600.822 million over preceding week's figure of Rs213,190.948 million, a fall of Rs97,590.126 million. Compared to last year's corresponding figure of Rs109,267.411 million, the current week's figure is substantially higher by Rs6,333.411 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 Rs58,405.281 million, similar to preceding week's figure. The current week's figure is larger by Rs3,457.386 million over last year's corresponding figure of Rs54,947.895 million.

There was an inflow of Rs2,188.830 million to the industrial sector during the week under review, against preceding week's figure of Rs2,188.927 million, a decline of Rs0.097 million. When compared to last year's corresponding figure of Rs2,695.021 million, the current week's figure is lower by Rs506.191 million.

The export sector received Rs93,973.942 million against previous week's figure of Rs93,562.723 million, a rise of Rs411.219 million. Current week's figure was larger by Rs26,981.92 million over last year's corresponding figure of Rs66,992.022 million.

According to the weekly statement of position of scheduled banks for the week ended October 16, 2004, the sum of demand and time liabilities further declined in the week under review. The sum total stood at Rs2,122,464 million against preceding week's Rs2,151,591 million, a fall of Rs29,127 million. As compared to the total deposits of Rs1,831,855 million in the corresponding period last year, current week's deposits were higher by Rs290,609 million.

During the week under review, demand deposits stood at Rs1,181,665 million, a rise of Rs83,157 million over previous week's Rs1,098,508 million. It was also higher against last year's corresponding figure of Rs895,769 million by Rs285,896 million.

Time deposits however, fell in the current week. At Rs940,799 million it was smaller by Rs112,284 million over previous week's Rs1,053,083 million but higher by Rs4,713 million over last year's corresponding figure of Rs936,086 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities increased in the current week. At Rs167,070 million it was larger by Rs517 million over preceding week's Rs166,553 million. Compared to last year's corresponding figure of Rs143,433 million, the current week's figure is higher by Rs23,637 million.

Scheduled banks borrowings from banks abroad stood at Rs5,935 million in the current week, as against Rs4,963 million a week ago, a rise of Rs972 million. It was smaller by Rs13,237 million over last year's corresponding figure of Rs19,172 million.

Money at call and short notice in Pakistan decreased in the week over previous week's figure. It stood at Rs33,516 million, a fall of Rs2,380 million over preceding week's Rs35,896 million. When compared to last year's corresponding figure of Rs21,808 million, the current week's figure is higher by Rs11,708 million.

Scheduled banks' advances including bills purchased and discounted rose in the week under review. At Rs1,434,284 million it was larger by Rs13,194 million over preceding week's Rs1,421,090 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,090,884 million, the current week's advances are higher by Rs343,400 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities showed a rise in the current week when compared to preceding week's level. Such investments amounted to Rs705,487 million, a decline of Rs31,925 million over previous week's Rs737,412 million. Compared to last year's corresponding figure of Rs778,702 million, the current week's investment is smaller by Rs73,215 million.

Total assets of scheduled banks further declined in the week under review. These stood at Rs3,037,352 million against previous week's Rs3,072,155 million, a fall of Rs34,803 million. Compared to last year's corresponding figure of Rs2,606,656 million it shows a rise of Rs430,696 million.