February 6, 2006	Monday	Muharram 7, 1427

ON January 31, the State Bank of Pakistan picked up Rs16 billion, through the OMO, while the market was in excess of about Rs8 billion. This raised overnight rates to 8.9 per cent. The rate was 6.5 per cent a day earlier.

On February 1, the State Bank sold Treasury Bills worth Rs14.161 billion. It sold T-bills worth Rs10.343 billion for one-year tenor, Rs3.337 billion for three-month tenor and Rs480 million for six-month tenor.

On February 2, the Central Bank picked up excess liquidity from the banking system, keeping pressure on the rates. It conducted the OMO to mop up Rs17.5 billion at the rate of 8.05 per cent per annum. This was the third continuous outflow of liquidity from the market in the last three days.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended July 2January 28, 2006, both notes in circulation and those issued declined substantially during the week. Notes in circulation stood at Rs795,237.077 million against the earlier week’s figure of Rs809,631.431 million, a fall of Rs14,394.354 million. When compared to the corresponding week a year ago when it was Rs737,457.141 million, the current week’s figure is higher by Rs57,779.936 million.

Total notes issued also decreased in the current week over preceding week’s level. At Rs795,420.893 million it was smaller by Rs14,406.136 million over the figure of Rs809,827.029 million recorded a week earlier. In the corresponding week last year it amounted to Rs737,597.824 million, which shows current week’s figure to be higher by Rs57,823.069 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 declined in the week under review. It stood at Rs140,336.048 million over preceding week’s figure of Rs148,457.765 million, showing a fall of Rs8,121.717 million. Compared to last year’s corresponding figure of Rs173,170.406 million, the current week’s figure higher is by Rs32,834.358 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 Rs60,708.144 million, showing an increase of Rs0.28 million against preceding week’s figure of Rs60,707.864 million. The current week’s figure is larger by Rs2,131.707 million over last year’s corresponding figure of Rs58,576.437 million.

There was an inflow of Rs3,696.680 million to the industrial sector during the week under review, a rise of Rs295.527 million against preceding week’s figure of Rs3,401.153 million. When compared to last year’s corresponding figure of Rs1,169.387 million, the current week’s figure is higher by Rs2,527.293 million.

The export sector received Rs105,890.076 million against previous week’s figure of Rs106,681.220 million, a rise of Rs791.144 million. Current week’s figure was larger by Rs1,292.017 million over last year’s corresponding figure of Rs104,598.059 million.

According to the weekly statement of position of all scheduled banks for the week ended January 21, 2006, deposits and other accounts of the scheduled banks stood at Rs2,577.702 billion, having risen by Rs5.493 billion over preceding week’s figure of Rs2,572.209 billon. Commercial banks deposits showed a rise of Rs5.592 billion over the week to Rs2,564.904 billion against preceding week’s Rs2,559.312 billion, while of specialized banks it rose by Rs0.099 million to Rs12.897 billion, over previous week’s Rs12.798 billion.

Borrowings by all scheduled banks declined during the week over preceding week’s figure. It fell to Rs326.743 billion over preceding week’s figure of Rs341.580 billion, a fall of Rs14.837 billion. This was primarily due to a decline in the borrowings by commercial banks, which fell to Rs244.630 billion against previous week’s Rs259.404 billion, or by Rs14.774 billion, while borrowings by specialised banks declined to Rs82.114 billion over preceding week’s figure of Rs82.177 billion, a decrease of Rs0.063 billion.

Gross advances stood at Rs2,007.058 billion in the week under review, a decrease of Rs5.743 billion over preceding week’s figure of Rs2,012.801 billion. Advances by commercial banks fell to Rs1,902.855 billion against earlier week’s figure of Rs1,908.899 billion, lower by Rs6.044 billion.

Investments of all scheduled banks increased in the week by Rs2.623 billion to Rs753.111 billion against preceding week’s figure of Rs750.488 billion. Commercial banks investment level rose to Rs733.231 billion, from earlier week’s Rs730.819 billion, higher by Rs2.412 billion, while of specialized banks it stood at Rs19.880 billion against previous week’s Rs19.670 billion, a rise of Rs0.21 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs0.506 billion during the week to stand at Rs242.730 billion against earlier week’s Rs242.224 billion. The figure for commercial banks rose to Rs240.698 billion against preceding week’s figure of Rs240.277 billion, a rise of Rs0.421 billion. For specialized banks the rise was to the tune of Rs0.085 million to Rs2.032 billion, against earlier week’s figure of Rs1.947 billion.

Total assets of scheduled banks stood at Rs3,373.655 billion, a decrease of Rs11.201 billion, over preceding week’s figure of Rs3,384.856 billion. Meanwhile, commercial banks assets stood at Rs3,261.206 billion, lower by Rs11.535 billion over previous week’s figure of Rs3,272.741 billion. Specialized banks assets rose by Rs0.335 billion to Rs112.450 billion against previous week’s Rs112.115 billion.