ON October 31, the State Bank of Pakistan injected Rs5 billion through buy back of Treasury bills. The liquidity was injected at 8.55 per cent per annum. The amount injected was not sufficient, and the banks were compelled to get another Rs10 billion from the discount window.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended July 2October 22, 2005, both notes in circulation and those issued declined in the week. Notes in circulation stood at Rs751,192.688 million against earlier week’s figure of Rs752,516.687 million, a fall of Rs1,323.999 million. When compared to the corresponding week a year ago when it was Rs672,257.895 million, the current week’s figure is higher by Rs78,934.793 million.

Total notes issued also fell in the current week over preceding week’s level. At Rs751,322.228 million it was smaller by Rs1,350.072 million over the figure of Rs752,672.300 million recorded a week earlier. In the corresponding week last year it amounted to Rs672,501.333 million, which shows current week’s figure to be higher by Rs78,820.895 million over last year’s corresponding figure.

Approved foreign exchange declined in the week to Rs428,765.947 million or by Rs11,635.864 million over preceding week’s figure of Rs440,401.811 million. When compared to the corresponding week a year ago, when the figure was Rs503,032.767 million, the current week’s figure is higher by Rs74,266.82 million.

Balances held outside Pakistan in approved foreign exchange showed a rise in the week under review. It stood at Rs142,371.041 million over preceding week’s figure of Rs137,438.568 million, showing a rise of Rs4,932.473 million. Compared to last year’s corresponding figure of Rs115,844.233 million, the current week’s figure is larger by Rs26,526.808 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 Rs60,214.062 million, against preceding week’s figure of Rs60,224.062 million, showing a decline of Rs10 million. The current week’s figure is larger by Rs1,808.781 million over last year’s corresponding figure of Rs58,405.281 million.

There was an inflow of Rs1,844.196 million to the industrial sector during the week under review, a rise of Rs48.996 million against preceding week’s figure of Rs1,795.200 million. When compared to last year’s corresponding figure of Rs2,186.484 million, the current week’s figure is lower by Rs342.288 million.

The export sector received Rs101,882.974 million against previous week’s figure of Rs100,531.647 million, a rise of Rs1,351.327 million. Current week’s figure was larger by Rs6,939.172 million over last year’s corresponding figure of Rs94,943.802 million.