ON November 11, banks borrowed Rs10.615 billion from the State Bank, after an outflow of more than Rs7 billion from the system for the settlement of a Treasury bill auction earlier in the week. The overnight money rates remained at 8.9 per cent, just below the discount rate of 9 per cent.

On the following day, the banks borrowed Rs17.709 billion from the SBP’s discount window.

According to the Statement of Affairs of the State Bank of Pakistan for the week ended July 2October 29, 2005, both notes in circulation and those issued showed an increase. Notes in circulation stood at Rs766,179.646 million against earlier week’s figure of Rs751,192.688 million, a rise of Rs14,986.958 million. When compared to the corresponding week a year ago when it was Rs672,563.579 million, the current figure is higher by Rs93,616.067 million.

Total notes issued also rose. At Rs766,420.008 million it was larger by Rs15,097.78 million over the figure of Rs751,322.228 million. In the corresponding week last year it was Rs672,791.758 million which shows current figures to be higher by Rs93,628.25 million over last year’s corresponding figure.

Approved foreign exchange also increased to Rs430,701.653 million or by Rs1,935.706 million over preceding week’s figure of Rs428,765.947 million. When compared to the corresponding week a year ago, when it was Rs509,931.696 million, the current figure is smaller by Rs79,230.043 million.

Balances held outside Pakistan in approved foreign exchange showed a rise. It stood at Rs149,839.057 million over preceding week’s figure of Rs142,371.041 million, showing a rise of Rs7,468.016 million. Compared to last year’s corresponding figure of Rs111,669.648 million, the current week’s figure is larger by Rs38,169.409 million.

Loans and advances of scheduled banks to the three sectors – agricultural, industrial and export showed a mixed trend. The agricultural sector received Rs60,714.062 million, against preceding week’s figure of Rs60,214.062 million, showing a rise of Rs500 million. The current week’s figure is larger by Rs2,308.781 million over last year’s corresponding figure of Rs58,405.281 million.

There was an inflow of Rs1,847.047 million to the industrial sector, a rise of Rs2.851 million against preceding week’s figure of Rs1,844.196 million. When compared to last year’s corresponding figure of Rs2,186.317 million, the current week’s figure is lower by Rs339.27 million.

The export sector received Rs102,426.369 million against previous week’s figure of Rs101,882.974 million, a rise of Rs543.395 million. Current week’s figure was larger by Rs6,683.736 million over last year’s corresponding figure of Rs95,742.633 million.

According to the weekly statement of position of all scheduled banks for the week ended October 22, 2005, deposits and other accounts of the scheduled banks stood at Rs2,406.540 billion, having risen by Rs13.751 billion over preceding week. Commercial banks deposits showed a rise of Rs13.786 billion over the week to Rs2,393.678 billion against preceding week’s Rs2,379.892 billion, while of specialized banks it fell by Rs0.035 billion to Rs12.863 billion, over previous week’s Rs12.898 billion.

Borrowings by all scheduled banks declined during the week. It fell to Rs276.902 billion over preceding week’s figure of Rs285.031 billion, a fall of Rs8.129 billion. This was primarily due to substantial decline in the borrowings by commercial banks, which fell to Rs195.146 billion against previous week’s Rs203.265 billion, a fall of Rs8.119 billion, while borrowings by specialised banks also fell by Rs0.01 billion to Rs81.757 billion against Rs81.767 billion a week earlier.

Gross advances stood at Rs1,854.583 billion in the week under review, a rise of Rs20.822 billion over preceding week’s figure of Rs1,833.761 billion. Advances by commercial banks rose to Rs1,744.100 billion against earlier week’s figure of Rs1,723.414 billion or by Rs20.686 billion.

Investments of all scheduled banks increased in the week by Rs2.401 billion to Rs724.620 billion against preceding week’s figure of Rs722.219 billion. Commercial banks investment level fell to Rs710.784 billion, from earlier week’s Rs711.033 billion or by Rs0.249 billion, while of specialized banks it stood at Rs13.836 billion against previous week’s Rs11.186 billion, a rise of Rs2.65 billion.

Cash and balances with treasury banks of all scheduled banks recorded a fall of Rs4.148 billion during the week to stand at Rs223.570 billion against earlier week’s Rs227.718 billion. The figure for commercial banks fell to Rs221.965 billion against preceding week’s figure of Rs224.069 billion, a fall of Rs2.104 billion. For specialized banks the decline was to the tune of Rs2.045 billion to Rs1.605 billion, against earlier week’s figure of Rs3.650 billion.