07 March 2005	Monday	25 Muharram 1426

On March 3, the State Bank of Pakistan conducted an open market operation to mop up Rs51.3 billion from the inter-bank market for two weeks through repo sale of the treasury bills at 3.69 per cent.

The outflow of money from the banking system pushed overnight call rates to 1.5-2 per cent from 0.25-0.50 per cent a day earlier.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended February 19, 2005, both notes in circulation and those issued declined in the week. Notes in circulation stood at Rs717,515.915 million against earlier week's figure of Rs722,961.051 million, a fall of Rs5,445.136 million. When compared to the corresponding week a year ago when it was Rs620,200.108 million, the current week's figure is higher by Rs97,315.807 million.

Total notes issued also fell in the current week over preceding week's level. At Rs717,726.429 million it was smaller by Rs5,438.203 million over the figure of Rs723,164.632 million recorded a week earlier. In the corresponding week last year it amounted to Rs620,410.187 million, which shows current week's figure to be higher by Rs97,316.242 million over last year's corresponding figure.

Approved foreign exchange declined in the week to Rs476,887.534 million or by Rs1,415.799 million over preceding week's figure of Rs478,303.333 million. When compared to the corresponding week a year ago, when the figure was Rs494,064.613 million, the current week's figure was smaller by Rs17,177.079 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs132,125.072 million over preceding week's figure of Rs129,744.171 million, a rise of Rs2,380.901 million. Compared to last year's corresponding figure of Rs142,882.235 million, the current week's figure is smaller by Rs10,757.163 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 Rs1,166.988 million to the industrial sector during the week under review, against preceding week's figure of Rs1,168.823 million, a fall of Rs1.835 million. When compared to last year's corresponding figure of Rs2,521.643 million, the current week's figure is lower by Rs1,354.655 million.

The export sector received Rs105,532.898 million against previous week's figure of Rs106,119.147 million, a fall of Rs586.249 million. Current week's figure was larger by Rs27,710.656 million over last year's corresponding figure of Rs77,822.242 million.

According to the weekly statement of position of scheduled banks for the week ended February 18, 2005, the sum of demand and time liabilities rose in the week under review. The sum total stood at Rs2,287,165 million against preceding week's Rs2,270,754 million, a rise of Rs16,411 million. As compared to the total deposits of Rs1,910,523 million in the corresponding period last year, current week's deposits were higher by Rs376,642 million.

During the week under review, demand deposits stood at Rs1,184,416 million, a rise of Rs9,204 million over previous week's Rs1,175,212 million. It was also higher against last year's corresponding figure of Rs959,228 million by Rs225,188 million.

Time deposits rose in the current week. At Rs1,102,749 million it was higher by Rs7,207 million over previous week's Rs1,095,542 million and by Rs151,454 million over last year's corresponding figure of Rs.951,295 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities fell in the current week. At Rs176,501 million it was smaller by Rs1,239 million over preceding week's Rs177,740 million. Compared to last year's corresponding figure of Rs150,716 million, the current week's figure is higher by Rs25,785 million.

Scheduled banks borrowings from banks abroad stood at Rs6,632 million in the current week, as against Rs6,253 million a week ago, a rise of Rs370 million. It was smaller by Rs13,505 million over last year's corresponding figure of Rs20,128 million.

Money at call and short notice in Pakistan rose in the week under review as against previous week's figure. It stood at Rs29,046 million, a rise of Rs700 million over preceding week's Rs.28,346 million. When compared to last year's corresponding figure of Rs22,382 million, the current week's figure is higher by Rs6,664 million.

Scheduled banks' advances including bills purchased and discounted increased in the week under review. At Rs1,648,908 million it was higher by Rs13,583 million over preceding week's Rs1,635,325 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,228,006 million, the current week's advances are higher by Rs420,902 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 Rs639,679 million, a rise of Rs18,209 million over previous week's Rs621,470 million. Compared to last year's corresponding figure of Rs730,619 million, the current week's investment is smaller by Rs90,940 million.

Total assets of scheduled banks increased in the week under review. These stood at Rs3,261,181 million against previous week's Rs3,234,494 million, a rise of Rs26,687 million. Compared to last year's corresponding figure of Rs2,741,078 million, it shows a rise of Rs520,103 million.