2 May 2005	Monday	22 Rabi-ul-Awwal 1426

IN open market operation on April 27, the State Bank of Pakistan sold Rs7.882 billion of six-month treasury bills after receiving bids worth Rs20.01 billion. The cut-off yield was raised to 7.1877 per cent from 5.6923 per cent at the previous sale on March 30. The weighted average annual yield on the paper also rose to 7.0762 per cent from 5.5070 per cent. The State Bank has reinforced its aggressive stance against rising consumer prices. The Consumer Price Index rose 10.25 per cent in March over the corresponding month a year earlier. According to the Statement of Affairs of the State Bank of Pakistan, for the week ended April 16, 2005, both notes in circulation and those issued decreased. Notes in circulation stood at Rs715,082.832 million against the earlier week’s figure of Rs716,834.246 million, a fall of Rs1,751.414 million. When compared to the corresponding week a year ago when it was Rs617,807.115 million, the current week’s figure is higher by Rs97,275.717 million.

The total notes issued also fell in the current week over preceding week’s level. At Rs715,266.133 million it was smaller by Rs1,732.766 million over Rs716,998.899 million recorded a week earlier. In the corresponding week last year it amounted to Rs617,978.159 million, which shows current week’s figure to be higher by Rs97,287.974 million over last year’s corresponding figure.

Approved foreign exchange rose to Rs506,693.933 million or by Rs15,456.576 million over preceding week’s figure of Rs491,237.357 million. When compared to the corresponding week a year ago, when the figure was Rs491,392.457 million, the current week’s figure was higher by Rs15,301.476 million. Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs125,642.729 million over preceding week’s figure of Rs142,151.711 million, a fall of Rs16,508.982 million. Compared to last year’s corresponding figure of Rs152,729.083 million, the current week’s figure is smaller by Rs27,086.354 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 Rs3,353.898 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 Rs2,370.170 million, the current week’s figure is lower by Rs1,112.136 million.

The export sector received Rs108,236.910 million against previous week’s figure of Rs108,417.694 million, a fall of Rs180.784 million. Current week’s figure was larger by Rs26,303.837 million over last year’s corresponding figure of Rs81,933.073 million. According to the weekly statement of position of scheduled banks for the week ended April 16, 2005, the sum of demand and time liabilities fell in the week under review. The sum total stood at Rs2,355,918 million against preceding week’s Rs2,358,778 million, a fall of Rs2,860 million. As compared to the total deposits of Rs1,955,544 million in the corresponding period last year, current week’s deposits were higher by Rs400,374 million.

During the week under review, demand deposits stood at Rs1,204,904 million, a fall of Rs9,860 million over previous week’s Rs1,214,764 million. It was however, higher against last year’s corresponding figure of Rs972,369 million by Rs232,535 million. Time deposits rose in the current week. At Rs1,151,014 million it was higher by Rs7,000 million over previous week’s Rs1,144,014 million and by Rs167,839 million over last year’s corresponding figure of Rs983,175 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities fell in the current week. At Rs181,211 million it was smaller by Rs.296 million over preceding week’s Rs181,507 million. Compared to last year’s corresponding figure of Rs153,568 million, the current week’s figure is higher by Rs27,643 million. Scheduled banks borrowings from banks abroad stood at Rs5,981 million in the current week, as against Rs5,830 million a week ago, a rise of Rs151 million. It was also higher by Rs605 million over last year’s corresponding figure of Rs5,376 million.

Money at call and short notice in Pakistan fell in the week under review as against previous week’s figure. It stood at Rs28,341 million, a fall of Rs2,315 million over preceding week’s Rs30,656 million. When compared to last year’s corresponding figure of Rs28,741 million, the current week’s figure is smaller by Rs400 million. Scheduled banks’ advances including bills purchased and discounted decreased in the week under review. At Rs1,690,866 million it was smaller by Rs1,861 million over preceding week’s Rs1,692,727 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,228,350 million, the current week’s advances are higher by Rs462,516 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 Rs665,307 million, a rise of Rs4,476 million over previous week’s Rs660,831 million. Compared to last year’s corresponding figure of Rs769,986 million, the current week’s investment is smaller by Rs104,679 million.

Total assets of scheduled banks rose in the week under review. These stood at Rs3,365,745 million against previous week’s Rs3,357,004 million, a rise of Rs8,741 million. Compared to last year’s corresponding figure of Rs2,787,748 million, it shows a rise of Rs577,997 million.