ON June 22, The State Bank of Pakistan sold Rs81 billion worth of three-month, six-month and one year Treasury bills against the target of Rs20 billion. The cut-off on the benchmark six-month bill was left unchanged at 7.969 per cent.
The central bank also maintained the cut-off on 3-month and one year bills at the June 8 levels of 7.51 per cent and 8.45 per cent, respectively.
Local banks borrowed Rs12,06 billion from the State Bank of Pakistan’s discount window at nine per cent under its three days repo facility on June 24. A day earlier, the banks had borrowed Rs11.875 billion from the same facility.
The governments’ bank borrowings have surged from Rs55 billion in May 28 to Rs108 billion by June 11. This was mainly on account of budgetary borrowings of the federal government.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 18, 2005, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs728,144.266 million against earlier week’s figure of Rs731,216.006 million, a fall of Rs3,071.740 million. When compared to the corresponding week a year ago when it was Rs619,916.735 million, the current week’s figure is higher by Rs108,227.531 million.
Total notes issued also fell in the current week over preceding week’s level. At Rs728,299.733 million it was lower by Rs3,115.946 million over the figure of Rs731,415.679 million recorded a week earlier. In the corresponding week last year it amounted to Rs620,125.494 million, which shows current week’s figure to be higher by Rs108,174.239 million over last year’s corresponding figure.
Approved foreign exchange fell in the week to Rs476,943.932 million or by Rs5,468.198 million over preceding week’s figure of Rs482,412.130 million. When compared to the corresponding week a year ago, when the figure was Rs440,572.725 million, the current week’s figure was higher by Rs36,371.207 million.
Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs126,674.538 million over preceding week’s figure of Rs122,083.289 million, a rise of Rs4,591.249 million. Compared to last year’s corresponding figure of Rs190,385.506 million, the current week’s figure is smaller by Rs63,710.968 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 Rs60,571.437 million, against preceding week’s figure of Rs59,571.437 million a rise of one million rupees. The current week’s figure is larger by Rs4,315.898 million over last year’s corresponding figure of Rs56,255.539 million.
There was an inflow of Rs1,547.356 million to the industrial sector during the week under review, a rise of Rs182.294 million against preceding week’s figure of Rs1,362.170 million. When compared to last year’s corresponding figure of Rs2,339.037 million, the current week’s figure is lower by Rs791.681 million.
The export sector received Rs.109,198.182 million against previous week’s figure of Rs109,412.452 million, a fall of Rs214.270 million. Current week’s figure was larger by Rs22,455.993 million over last year’s corresponding figure of Rs86,442.189 million.
According to the weekly statement of position of scheduled banks for the week ended June 11, 2005, the sum of demand and time liabilities fell in the week under review. The sum total stood at Rs2,442,032 million against preceding week’s Rs2,443,851 million, a fall of Rs1,819 million. As compared to the total deposits of Rs2,054,550 million in the corresponding period last year, current week’s deposits were higher by Rs387,482 million.
During the week under review, demand deposits stood at Rs1,219,701 million, a fall of Rs6,411 million over previous week’s Rs1,226,112 million. It was higher against last year’s corresponding figure of Rs1,026,963 million by Rs192,738 million.
Time deposits rose in the current week. At Rs1,222,331 million it was higher by Rs4,592 million over previous week’s Rs1,217,739 million and by Rs194,744 million over last year’s corresponding figure of Rs1,027,587 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs187,729 million it was lower by Rs.885 million over preceding week’s Rs186,844 million. Compared to last year’s corresponding figure of Rs156,801 million, the current week’s figure is higher by Rs30,928 million.
Scheduled banks borrowings from banks abroad stood at Rs6,739 million in the current week, as against Rs6,013 million a week ago, a rise of Rs726 million. It was also higher by Rs1,346 million over last year’s corresponding figure of Rs5,393 million.
Money at call and short notice in Pakistan fell in the week under review as against previous week’s figure. It stood at Rs23,576 million, a fall of Rs2,400 million over preceding week’s Rs25,976 million. When compared to last year’s corresponding figure of Rs30,126 million, the current week’s figure is smaller by Rs6,550 million.
Scheduled banks’ advances including bills purchased and discounted decreased in the week under review. At Rs1,749,207 million it was lower by Rs2,132 million over preceding week’s Rs1,751,339 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,301,023 million, the current week’s advances are higher by Rs448,184 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 Rs690,393 million, a rise of Rs.1,401 million over previous week’s Rs688,992 million. Compared to last year’s corresponding figure of Rs728,064 million, the current week’s investment is smaller by Rs37,671 million.
ON June 22, The State Bank of Pakistan sold Rs81 billion worth of three-month, six-month and one year Treasury bills against the target of Rs20 billion. The cut-off on the benchmark six-month bill was left unchanged at 7.969 per cent.
