January 30, 2006	Monday	Zilhaj 29, 1426

The State Bank of Pakistan mopped up Rs5.350 billion on January 27, for one day. On the preceding day the central bank had picked up Rs10.3 billion. The overnight rate fell to five per cent on January 27, despite regular mopping up of liquidity by the SBP.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended January 21, 2006, both notes in circulation and those issued declined substantially during the week. Notes in circulation stood at Rs809,631.431 million against earlier week's figure of Rs821,530.738 million, a fall of Rs11,899.307 million. When compared to the corresponding week a year ago when it was Rs734,246.859 million, the current week's figure is higher by Rs75,384.572 million.

Total notes issued also decreased in the current week over preceding week's level. At Rs809,827.029 million it was smaller by Rs11,820.362 million over the figure of Rs821,647.391 million recorded a week earlier. In the corresponding week last year it amounted to Rs734,414.397 million, which shows current week's figure to be higher by Rs75,412.632 million over last year's corresponding figure.

Approved foreign exchange declined in the week to Rs426,317.456 million or by Rs5,636.393 million over preceding week's figure of Rs431,953.849 million. When compared to the corresponding week a year ago, when the figure was Rs424,340.076 million, the current week's figure is larger by Rs1,977.38 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs148,457.765 million over preceding week's figure of Rs141,267.528 million, showing a rise of Rs7,190.237 million. Compared to last year's corresponding figure of Rs137,077.083 million, the current week's figure higher is by Rs11,380.682 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 Rs60,707.864 million, similar to the preceding week's figure. The current week's figure is larger by Rs3,116.420 million over last year's corresponding figure of Rs57,591.444 million.

There was an inflow of Rs3,401.153 million to the industrial sector during the week under review, a rise of Rs197.454 million against preceding week's figure of Rs3,203.699 million. When compared to last year's corresponding figure of Rs1,169.387 million, the current week's figure is higher by Rs2,231.766 million.

The export sector received Rs106,681.220 million against previous week's figure of Rs105,911.299 million, a rise of Rs769.921 million. Current week's figure was larger by Rs1,092.732 million over last year's corresponding figure of Rs105,588.488 million.

According to the weekly statement of position of all scheduled banks for the week ended January 7, 2006, deposits and other accounts of the scheduled banks stood at Rs2,584.289 billion, having fallen by Rs77.408 billion over preceding week's figure of Rs2,661.697 billon. Commercial banks deposits showed a fall of Rs77.131 billion over the week to Rs2,571.383 billion against preceding week's Rs2,648.514 billion, while of specialized banks it fell by Rs277 million to Rs12.906 billion, over previous week's Rs13.183 billion.

Borrowings by all scheduled banks increased during the week over preceding week's figure. It rose to Rs344.809 billion over preceding week's figure of Rs336.301 billion, a rise of Rs8.508 billion. This was primarily due to an increase in the borrowings by commercial banks, which rose to Rs262.632 billion against previous week's Rs251.154 billion, or by Rs11.478 billion, while borrowings by specialised banks declined to Rs82.177 billion over preceding week's figure of Rs85.146 billion, a decrease of Rs2.969 billion.

Gross advances stood at Rs2,020.777 billion in the week under review, a decrease of Rs23.205 billion over preceding week's figure of Rs2,043.982 billion. Advances by commercial banks fell to Rs1,916.175 billion against earlier week's figure of Rs1,935.577 billion, lower by Rs19.402 billion. Investments of all scheduled banks increased in the week by Rs20.094 billion to Rs750.161 billion against preceding week's figure of Rs730.067 billion.