January 9, 2006	Monday	Zilhaj 8, 1426

ON January 3, the State Bank of Pakistan mopped up Rs10.7 billion through an Open Market Operation. The Central Bank had received offer of Rs11.9bn. The money was picked up at 6.5 per cent. The outflow of liquidity from the market pushed up overnight rate from 4.5 per cent to 8.5 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended December 24, 2005, both notes in circulation and those issued declined further during the week. Notes in circulation stood at Rs784,859.046m against the earlier week’s figure of Rs792,116.657m, a fall of Rs7,257.611m. When compared to the corresponding week a year ago when it was Rs704,633.194m, the current week’s figure is higher by Rs80,225.852m.

Total notes issued also fell in the current week over preceding week’s level. At Rs785,064.096m it was smaller by Rs7,231.356m over the figure of Rs792,295.452m recorded a week earlier. In the corresponding week last year it amounted to Rs704,810.705m, which shows the current week’s figure to be higher by Rs80,253.391m over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs411,783.111m or by Rs3,722.323m over the preceding week’s figure of Rs408,060.788m. When compared to the corresponding week a year ago, when the figure was Rs417,706.034m, the current week’s figure is smaller by Rs5,922.923m.

Balances held outside Pakistan in approved foreign exchange declined in the week under review. It stood at Rs147,913.978m over the preceding week’s figure of Rs148,429.609m, showing a fall of Rs515.631m. Compared to last year’s corresponding figure of Rs148,669.323m, the current week’s figure smaller is by Rs755.345m.

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 Rs63,126.897m against the preceding week’s figure of Rs61,126.897m, showing an increase of Rs2000m. The current week’s figure is larger by Rs740.203m over last year’s corresponding figure of Rs60,386.694m.

There was an inflow of Rs2,824.246m to the industrial sector during the week under review, a rise of Rs299.541m against the preceding week’s figure of Rs2,524.705m. When compared to last year’s corresponding figure of Rs1,182.846m, the current week’s figure is higher by Rs1,641.4m.

The export sector received Rs106,044.173m against the previous week’s figure of Rs106,062.779m, a decline of Rs18.606m. Current week’s figure was larger by Rs4,817.667m over last year’s corresponding figure of Rs101,226.506m.

According to the weekly statement of position of all scheduled banks for the week ended December 24, 2005, deposits and other accounts of the scheduled banks stood at Rs2,563.409bn, having risen by Rs31.753bn over preceding week’s figure of Rs2,531.656 billon. Commercial banks deposits showed a rise of Rs31.6bn over the week to Rs2,550.589bn against preceding week’s Rs2,518.989bn, while of specialized banks it rose by Rs0.151bn to Rs12.819bn, over previous week’s Rs12.668bn.

Borrowings by all scheduled banks increased during the week over the preceding week’s figure. It rose to Rs311.798bn over the preceding week’s figure of Rs304.422bn, a rise of Rs7.376bn. This was primarily due to an increase in the borrowings by commercial banks which rose to Rs227.131bn against previous week’s Rs221.955bn, or by Rs5.176bn, while borrowings by specialised banks also increased to Rs84.666bn over preceding week’s figure of Rs82.466bn, a fall of Rs2.2bn.

The gross advances stood at Rs1,996.757bn in the week under review, a rise of Rs20.282bn over preceding week’s figure of Rs1,976.475bn. Advances by commercial banks rose to Rs1,888.079bn against the earlier week’s figure of Rs1,867.635bn or by Rs20.444bn.

Investments of all scheduled banks increased in the week by Rs31.541bn to Rs729.792bn against preceding week’s figure of Rs698.251bn. Commercial banks’ investment level rose to Rs711.540bn, from earlier week’s Rs686.359bn or by Rs25.181bn, while of specialized banks it stood at Rs18.252bn against previous week’s Rs11.892bn, a rise of Rs6.36bn.