On February 16, the State Bank of Pakistan raised Rs62.34 billion through the auction of three-month and 12-month Treasury Bills.
By accepting Rs62.252 billion, three-month yield was raised by 41 basis points from 4.3294 per cent to 4.7441 per cent, and in 12-month the SBP could get a token amount of Rs100 million only by pushing the yield up by 50 basis points from 4.9891 per cent to 5.4891 per cent.
On February 17, the State Bank of Pakistan mopped up Rs41.35 billion through the repo sale of Treasury bills for 2-week at 3.95 per cent. The central bank sucked in this huge liquidity from the market to keep inter-bank rate from falling. The cut off yield for one year was raised to 5.48 per cent from 4.98 per cent, and for three month to 4.74 per cent from 4.32 per cent.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended February 5, 2005, both notes in circulation and those issued declined in the week.
Notes in circulation stood at Rs728,555.349 million against earlier week's figure of Rs737,457.141 million, a fall of Rs8,901.792 million. When compared to the corresponding week a year ago when it was Rs637,915.945 million, the current week's figure is higher by Rs90,639.404 million.
Total notes issued also fell in the current week over preceding week's level. At Rs728,683.520 million it was smaller by Rs8,914.304 million over the figure of Rs737,597.824 million recorded a week earlier.
In the corresponding week last year it amounted to Rs638,024.568 million, which shows current week's figure to be higher by Rs90,658.952 million over last year's corresponding figure.
Approved foreign exchange increased in the week to Rs467,449.596 million or by Rs28,533.379 million over preceding week's figure of Rs438,916.217 million. When compared to the corresponding week a year ago, when the figure was Rs504,013.501 million, the current week's figure was smaller by Rs36,563.905 million.
Balances held outside Pakistan in approved foreign exchange declined in the week under review. It stood at Rs141,366.516 million over preceding week's figure of Rs.173,170.406 million, a fall of Rs31,803.89 million. Compared to last year's corresponding figure of Rs103,559.777 million, the current week's figure is substantially higher by Rs37,806.739 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 Rs58,576.437 million, similar to preceding week's figure. The current week's figure is larger by Rs2,873.298 million over last year's corresponding figure of Rs55,703.139 million.
There was an inflow of Rs1,169.151 million to the industrial sector during the week under review, against preceding week's figure of Rs1,169.387 million, a fall of Rs0.236 million. When compared to last year's corresponding figure of Rs2,532.127 million, the current week's figure is lower by Rs1,362.976 million.
The export sector received Rs106,024.598 million against previous week's figure of Rs104,598.059 million, a rise of Rs.1,426.539 million. Current week's figure was larger by Rs28,222.526 million over last year's corresponding figure of Rs77,802.072 million.
According to the weekly statement of position of scheduled banks for the week ended February 4, 2005, the sum of demand and time liabilities rose in the week under review.
The sum total stood at Rs2,268,209 million against preceding week's Rs2,258,988 million, a rise of Rs9,221 million. As compared to the total deposits of Rs1,891,632 million in the corresponding period last year, current week's deposits were higher by Rs376,577 million.
During the week under review, demand deposits stood at Rs1,174,167 million, a rise of Rs.9,462 million over previous week's Rs1,164,705 million. It was however, higher against last year's corresponding figure of Rs935,030 million by Rs239,137 million.
Time deposits declined in the current week. At Rs1,094,042 million it was smaller by Rs241 million over previous week's Rs1,094,283 million but higher by Rs137,440 million over last year's corresponding figure of Rs956,602 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs177,552 million it was higher by Rs1,870 million over preceding week's Rs175,682 million. Compared to last year's corresponding figure of Rs153,138 million, the current week's figure is higher by Rs24,414 million.
Scheduled banks borrowings from banks abroad stood at Rs6,703 million in the current week, as against Rs5,786 million a week ago, a rise of Rs917 million. It was smaller by Rs14,367 million over last year's corresponding figure of Rs21,070 million.
Money at call and short notice in Pakistan rose in the week under review as against previous week's figure. It stood at Rs26,356 million, a fall of Rs4,225 million over preceding week's Rs30,581 million. When compared to last year's corresponding figure of Rs19,824 million, the current week's figure is higher by Rs6,532 million.
Scheduled banks' advances including bills purchased and discounted rose in the week under review. At Rs1,641,432 million it was larger by Rs3,853 million over preceding week's Rs1,637,579 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,218,697 million, the current week's advances are higher by Rs422,735 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 Rs616,906 million, a rise of Rs14,387 million over previous week's Rs602,519 million. Compared to last year's corresponding figure of Rs730,426 million, the current week's investment is smaller by Rs113,520 million.
Total assets of scheduled banks increased in the week under review. These stood at Rs3,213,673 million against previous week's Rs3,211,274 million, a rise of Rs2,399 million. Compared to last year's corresponding figure of Rs2,713,573 million, it shows a rise of Rs500,100 million.
