On February 22, the State Bank of Pakistan conducted Open Market Operations to suck in the excess liquidity. It mopped up Rs11.45 billion for one week at 3.75 per cent per annum.
The overnight rate, which was hovering at around one to 1.25 per cent, rose to 2 to 2.5 per cent after the OMO.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended February 12, 2005, both notes in circulation and those issued declined in the week.
Notes in circulation stood at Rs722,961.051 million against the earlier week's figure of Rs728,555.349 million, a fall of Rs5,594.298 million. When compared to the corresponding week a year ago when it was Rs631,593.991 million, the current week's figure is higher by Rs91,367.06 million.
Total notes issued also fell in the current week over preceding week's level. At Rs723,164.632 million it was smaller by Rs5,518.888 million over the figure of Rs728,683.520 million recorded a week earlier.
In the corresponding week last year it amounted to Rs631,814.861 million, which shows current week's figure to be higher by Rs91,349.771 million over last year's corresponding figure.
Approved foreign exchange increased in the week to Rs478,303.333 million or by Rs10,853.737 million over preceding week's figure of Rs467,449.596 million. When compared to the corresponding week a year ago, when the figure was Rs491,586.568 million, the current week's figure was smaller by Rs13,283.235 million.
Balances held outside Pakistan in approved foreign exchange declined in the week under review. It stood at Rs129,744.171 million over preceding week's figure of Rs141,366.516 million, a fall of Rs11,622.345 million. Compared to last year's corresponding figure of Rs116,267.170 million, the current week's figure is substantially higher by Rs13,477.001 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 Rs1,168.823 million to the industrial sector during the week under review, against preceding week's figure of Rs1,169.151 million, a fall of Rs0.328 million. When compared to last year's corresponding figure of Rs2,526.592 million, the current week's figure is lower by Rs1,357.769 million.
The export sector received Rs106,119.147 million against previous week's figure of Rs106,024.598 million, a rise of Rs94.549 million. Current week's figure was larger by Rs27,908.346 million over last year's corresponding figure of Rs78,210.801 million.
According to the weekly statement of position of scheduled banks for the week ended February 12, 2005, the sum of demand and time liabilities rose in the week under review.
The sum total stood at Rs2,270,754 million against preceding week's Rs2,268,209 million, a rise of Rs2,545 million. As compared to the total deposits of Rs1,906,631 million in the corresponding period last year, current week's deposits were higher by Rs364,123 million.
During the week under review, demand deposits stood at Rs1,175,212 million, a rise of Rs1,045 million over previous week's Rs1,174,167 million. It was also higher against last year's corresponding figure of Rs949,032 million by Rs226,180 million.
Time deposits rose in the current week. At Rs1,095,542 million it was higher by Rs1,500 million over previous week's Rs1,094,042 million and by Rs137,943 million over last year's corresponding figure of Rs957,599 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs177,740 million it was higher by Rs188 million over preceding week's Rs177,552 million. Compared to last year's corresponding figure of Rs152,114 million, the current week's figure is higher by Rs25,626 million.
Scheduled banks borrowings from banks abroad stood at Rs6,253 million in the current week, as against Rs6,703 million a week ago, a fall of Rs450 million. It was smaller by Rs14,975 million over last year's corresponding figure of Rs21,228 million.
Money at call and short notice in Pakistan rose in the week under review as against previous week's figure. It stood at Rs28,346 million, a rise of Rs1,990 million over preceding week's Rs26,356 million. When compared to last year's corresponding figure of Rs21,255 million, the current week's figure is higher by Rs7,091 million.
Scheduled banks' advances including bills purchased and discounted declined in the week under review. At Rs1,635,325 million it was smaller by Rs6,107 million over preceding week's Rs1,641,432 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,224,579 million, the current week's advances are higher by Rs410,746 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 Rs621,470 million, a rise of Rs.4,564 million over previous week's Rs616,906 million. Compared to last year's corresponding figure of Rs748,079 million, the current week's investment is smaller by Rs126,609 million.
Total assets of scheduled banks increased in the week under review. These stood at Rs3,234,494 million against previous week's Rs3,213,673 million, a rise of Rs20,821 million. Compared to last year's corresponding figure of Rs2,731,231 million, it shows a rise of Rs503,263 million.
