THE State Bank of Pakistan (SBP) mopped up Rs10.4 billion from the money market at its open market operation on April 19. It did this at 5.49 per cent. On April 21, the SBP sucked in Rs5.5 billion from the inter-bank market through an OMO, the third in a row to reduce liquidity levels. The central bank mopped up the liquidity at 5.45 per cent through repo sale of treasury bills. Two days earlier it had mopped up Rs6.4 billion and 10.4 billion.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended April 9, 2005, both notes in circulation and those issued increased in the week. Notes in circulation stood at Rs716,834.246 million against earlier week’s figure of Rs704,218.250 million, a rise of Rs12,615.996 million. When compared to the corresponding week a year ago when it was Rs620,487.561 million, the current week’s figure is higher by Rs96,346.685 million.
Total notes issued also rose in the current week over preceding week’s level. At Rs716,998.899 million it was higher by Rs.12,578.084 million over the figure of Rs.704,420.815 million recorded a week earlier. In the corresponding week last year it amounted to Rs620,675.391 million, which shows current week’s figure to be higher by Rs96,323.508 million over last year’s corresponding figure.
Approved foreign exchange rose in the week to Rs491,237.357 million or by Rs1,189.868 million over preceding week’s figure of Rs490,047.489 million. When compared to the corresponding week a year ago, when the figure was Rs496,571.467 million, the current week’s figure was smaller by Rs5,334.11 million.
Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs142,151.711 million over preceding week’s figure of Rs129,160.120 million, a rise of Rs.12,991.591 million. Compared to last year’s corresponding figure of Rs151,509.556 million, the current week’s figure is smaller by Rs9,357.845 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 Rs59,009.437 million similar to preceding week’s figure. The current week’s figure is larger by Rs.3,353.898 million over last year’s corresponding figure of Rs55,655.539 million.
There was an inflow of Rs1,258.034 million to the industrial sector during the week under review, similar to preceding week’s figure. When compared to last year’s corresponding figure of Rs.2,380.012 million, the current week’s figure is lower by Rs.1,121.978 million.
The export sector received Rs.108,417.694 million against previous week’s figure of Rs.108,499.536 million, a fall of Rs81.842 million. Current week’s figure was larger by Rs28,082.292 million over last year’s corresponding figure of Rs80,335.402 million.
According to the weekly statement of position of scheduled banks for the week ended April 9, 2005, the sum of demand and time liabilities fell in the week under review. The sum total stood at Rs2,358,778 million against preceding week’s Rs2,369,760 million, a fall of Rs.10,982 million. As compared to the total deposits of Rs1,949,699 million in the corresponding period last year, current week’s deposits were higher by Rs409,079 million.
During the week under review, demand deposits stood at Rs1,214,764 million, a fall of Rs8,433 million over previous week’s Rs1,223,197 million. It was however, higher against last year’s corresponding figure of Rs965,132 million by Rs249,632 million.
Time deposits also fell in the current week. At Rs.1,144,014 million it was smaller by Rs2,549 million over previous week’s Rs1,146,563 million but higher by Rs159,447 million over last year’s corresponding figure of Rs984,567 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs181,507 million it was higher by Rs353 million over preceding week’s Rs.181,154 million. Compared to last year’s corresponding figure of Rs151,943 million, the current week’s figure is higher by Rs29,564 million.
Scheduled banks borrowings from banks abroad stood at Rs.5,830 million in the current week, as against Rs8,021 million a week ago, a fall of Rs2,191 million. It was however, higher by Rs263 million over last year’s corresponding figure of Rs5,567 million.
Money at call and short notice in Pakistan fell in the week under review as against previous week’s figure. It stood at Rs30,656 million, a fall of Rs.135 million over preceding week’s Rs30,791 million. When compared to last year’s corresponding figure of Rs30,777 million, the current week’s figure is smaller by Rs121 million.
Scheduled banks’ advances including bills purchased and discounted decreased in the week under review. At Rs1,692,727 million it was smaller by Rs.11,618 million over preceding week’s Rs1,704,345 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,215,067 million, the current week’s advances are higher by Rs.477,660 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 Rs.660,831 million, a rise of Rs3,300 million over previous week’s Rs657,531 million. Compared to last year’s corresponding figure of Rs761,363 million, the current week’s investment is smaller by Rs100,532 million.
Total assets of scheduled banks declined in the week under review. These stood at Rs3,357,004 million against previous week’s Rs3,371,053 million, a fall of Rs14,049 million. Compared to last year’s corresponding figure of Rs2,778,621 million, it shows a rise of Rs578,383 million.
