17 January 2005	Monday	06 Zilhaj 1425

On January 13, the State Bank of Pakistan injected Rs9.35 billion into the inter-bank money market to help banks overcome the liquidity shortage created by the withdrawals ahead of Eid-ul-Azha.

Despite this injection the banks, on January 14, borrowed Rs6.1 billion overnight funds from the central bank to overcome the cash shortage. In recent days, banks have witnessed withdrawals of around Rs12-15 billion.

In addition to pre-Eid withdrawals, a larger than the targeted selling of Treasury bills by the State Bank and the ongoing dollar-selling by it for financing oil imports have created a liquidity shortage.

According to weekly statement of position of scheduled banks for the week ended January 1, 2005, the sum of demand and time liabilities rose in the week under review.

The sum total stood at Rs2,311,532 million against the preceding week's Rs2,240,641 million, a rise of Rs70,891 million. As compared to the total deposits of Rs1,883,430 million in the corresponding period last year, current week's deposits were higher by Rs428,102 million.

During the week under review, demand deposits stood at Rs1,202,404 million, a rise of Rs43,536 million over previous week's Rs1,158,868 million. It was also higher against last year's corresponding figure of Rs947,355 million by Rs255,049 million.

Time deposits rose in the current week. At Rs1,109,128 million it was higher by Rs27,355 million over previous week's Rs1,081,773 million and by Rs173,053 million over last year's corresponding figure of Rs936,075 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs176,354 million it was higher by Rs820 million over preceding week's Rs175,534 million. Compared to last year's corresponding figure of Rs153,128 million, the current week's figure is higher by Rs23,226 million.

Scheduled banks borrowings from banks abroad stood at Rs14,248 million in the current week, as against Rs.6,588 million a week ago, a rise of Rs7,660 million. It was smaller by Rs6,670 million over last year's corresponding figure of Rs20,918 million.

Money at call and short notice in Pakistan declined in the week under review as against previous week's figure. It stood at Rs29,636 million, a fall of Rs6,955 million over preceding week's Rs36,591 million. When compared to last year's corresponding figure of Rs22,028 million, the current week's figure is higher by Rs7,608 million.

Scheduled banks' advances including bills purchased and discounted rose in the week under review. At Rs1,629,812 million it was larger by Rs39,817 million over preceding week's Rs1,589,995 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,193,291 million, the current week's advances are higher by Rs436,521 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities showed a fall in the current week when compared to preceding week's level.

Such investments amounted to Rs615,381 million, a fall of Rs.10,665 million over previous week's Rs626,046 million. Compared to last year's corresponding figure of Rs747,745 million, the current week's investment is smaller by Rs132,364 million.

Total assets of scheduled banks increased in the week under review. These stood at Rs3,267,527 million against previous week's Rs3,189,784 million, a rise of Rs77,743 million. Compared to last year's corresponding figure of Rs2,693,722 million, it shows a rise of Rs573,805 million.