ON October 2, the State Bank of Pakistan mopped up Rs8bn at a return of 8.3 per cent at a time when the market was watching the overnight rate coming down to 7.5 per cent. The outflow immediately pushed up money rates and the overnight rate hit again 8.8-8.9 per cent, just below the discount rate at nine per cent.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended November 19, 2005, both notes in circulation and those issued declined during the week. Notes in circulation stood at Rs784,081.161m against earlier week’s figure of Rs791,706.971m, a fall of Rs7,625.81m. When compared to the corresponding week a year ago when it was Rs718,129.418m, the current week’s figure is higher by Rs65,951.743m.
Total notes issued also fell in the current week over preceding week’s level. At Rs784,242.323m it was smaller by Rs7,635.619m over the figure of Rs791,877.942m recorded a week earlier. In the corresponding week last year it amounted to Rs718,322.960m which shows the current week’s figure to be higher by Rs65,919.363m over last year’s corresponding figure.
Approved foreign exchange declined further in the week to Rs419,159.485m or by Rs12,427.12m over preceding week’s figure of Rs431,586.605m. When compared to the corresponding week a year ago, when the figure was Rs453,574.057m, the current week’s figure is smaller by Rs34,414.572m.
Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs144,374.370m over preceding week’s figure of Rs137,228.954m, showing a rise of Rs7,145.416m. Compared to last year’s corresponding figure of Rs134,018.683m, the current week’s figure is larger by Rs10,355.687m.
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 Rs60,714.062m similar to preceding week’s figure. The current week’s figure is larger by Rs2,327.368m over last year’s corresponding figure of Rs58,386.694m.
There was an inflow of Rs2,094.131m to the industrial sector during the week under review, a rise of Rs44.0m against preceding week’s figure of Rs2,050.131m. When compared to last year’s corresponding figure of Rs1,186.317m, the current week’s figure is higher by Rs907.814m.
The export sector received Rs103,583.846m against previous week’s figure of Rs102,957.601m, a rise of Rs626.245m. Current week’s figure was larger by Rs7,230.987m over last year’s corresponding figure of Rs96,352.859m.
According to the weekly statement of position of all scheduled banks for the week ended November 19, 2005, deposits and other accounts of the scheduled banks stood at Rs2,458.271bn, having risen by Rs30.432bn over preceding week’s figure of Rs2,427.839 billon. Commercial banks deposits showed a rise of Rs30.805bn over the week to Rs2,445.729bn against preceding week’s Rs2,414.924bn, while of specialized banks it fell by Rs0.372bn to Rs12.543bn, over previous week’s Rs12.915bn.
Borrowings by all scheduled banks during the week increased over preceding week’s figure. It rose to Rs296.228bn over preceding week’s figure of Rs294.591bn, a rise of Rs1.637bn. This was primarily due to increase in the borrowings by commercial banks, which rose to Rs214.101bn against previous week’s Rs212.464bn, a rise of Rs1.637bn, while borrowings by specialised banks remained at Rs82.127bn, similar to preceding week’s figure.
Gross advances stood at Rs1,922.346bn in the week under review, a rise of Rs19.747bn over preceding week’s figure of Rs1,902.599bn. Advances by commercial banks rose to Rs1,811.706bn against earlier week’s figure of Rs1,791.907bn or by Rs19.799bn.
Investments of all scheduled banks increased in the week by Rs2.377bn to Rs733.298bn against preceding week’s figure of Rs730.921bn. Commercial banks investment level rose to Rs719.593bn, from earlier week’s Rs717.022bn or by Rs11.328bn, while of specialized banks it stood at Rs13.704bn against previous week’s Rs13.899bn, a fall of Rs0.195bn.
Cash and balances with treasury banks of all scheduled banks declined by Rs10.14bn during the week to stand at Rs224.500bn against earlier week’s Rs234.640bn. The figure for commercial banks decreased to Rs222.780bn against preceding week’s figure of Rs232.901bn. For specialized banks the decline was to the tune of Rs0.019bn to Rs1.720bn, against earlier week’s Rs1.739bn.
ON October 2, the State Bank of Pakistan mopped up Rs8bn at a return of 8.3 per cent at a time when the market was watching the overnight rate coming down to 7.5 per cent. The outflow immediately pushed up money rates and the overnight rate hit again 8.8-8.9 per cent, just below the discount rate at nine per cent.
