On December 28, the State Bank of Pakistan picked up Rs10.5 billion from the market through the Open Market Operations. The SBP raised most of the Rs9.5 billion for three days at a rate of return of 7.6 per cent. It picked up one billion rupees for 8 days at 7.8 per cent rate of return.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended July 2December 17, 2005, both notes in circulation and those issued declined during the week. Notes in circulation stood at Rs792,116.657 million against earlier week’s figure of Rs793,525.611 million, a fall of Rs1,408.954 million. When compared to the corresponding week a year ago when it was Rs708,887.303 million, the current week’s figure is higher by Rs83,229.354 million.

Total notes issued also fell in the current week over preceding week’s level. At Rs792,295.452 million it was smaller by Rs1,517.21 million over the figure of Rs793,812.662 million recorded a week earlier. In the corresponding week last year it amounted to Rs709,045.336 million, which shows current week’s figure to be higher by Rs83,250.116 million over last year’s corresponding figure.

Approved foreign exchange declined in the week to Rs408,060.788 million or by Rs5,826.908 million, over preceding week’s figure of Rs413,887.696 million. When compared to the corresponding week a year ago, when the figure was Rs418,927.704 million, the current week’s figure is smaller by Rs10,866.916 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs148,429.609 million over preceding week’s figure of Rs144,758.885 million, showing a rise of Rs3,670.724 million. Compared to last year’s corresponding figure of Rs129,693.896 million, the current week’s figure is larger by Rs18,735.713 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 Rs61,126.897 million similar to the preceding week’s figure. The current week’s figure is larger by Rs1,740.203 million over last year’s corresponding figure of Rs59,386.694 million.

There was an inflow of Rs2,524.705 million to the industrial sector during the week under review, a rise of Rs118.31 million against preceding week’s figure of Rs2,406.395 million. When compared to last year’s corresponding figure of Rs1,183.234 million, the current week’s figure is higher by Rs1,341.471 million. The export sector received Rs106,062.779 million against previous week’s figure of Rs105,420.559 million, a rise of Rs642.22 million. Current week’s figure was larger by Rs6,137.647 million over last year’s corresponding figure of Rs99,925.132 million.

According to the weekly statement of position of all scheduled banks for the week ended December 17, 2005, deposits and other accounts of the scheduled banks stood at Rs2,531.656 billion, having risen by Rs14.843 billion over preceding week’s figure of Rs2,516.813 billon. Commercial banks deposits showed a rise of Rs14.806 billion over the week to Rs2,518.989 billion against preceding week’s Rs2,504.183 billion, while of specialized banks it rose by Rs0.037 billion to Rs12.668 billion, over previous week’s Rs12.631 billion.

Borrowings by all scheduled banks during the week increased over preceding week’s figure. It rose to Rs304.422 billion over preceding week’s figure of Rs295.909 billion, a rise of Rs8.513 billion. This was primarily due to an increase in the borrowings by commercial banks, which rose to Rs221.955 billion against previous week’s Rs213.542 billion, or by Rs8.413 billion, while borrowings by specialised banks also increased to Rs82.466 billion over preceding week’s figure of Rs82.366 billion, a fall of Rs0.1 billion. Gross advances stood at Rs1,976.475 billion in the week under review, a rise of Rs10.714 billion over preceding week’s figure of Rs1,965.761 billion. Advances by commercial banks rose to Rs1,867.635 billion against earlier week’s figure of Rs1,855.980 billion or by Rs11.655 billion.