February 20, 2006	Monday	Muharram 21, 1427

ON February 16, the State Bank of Pakistan picked up Rs23.5 billion through the open market operation. The amount was picked up for two days at 7.6 per cent return.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended February 11, 2006, both notes in circulation and those issued increased during the week. Notes in circulation stood at Rs807,189.472 million against earlier week’s figure of Rs799,430.529 million, a rise of Rs7,758.943 million. When compared to the corresponding week a year ago when it was Rs722,961.051 million, the current week’s figure is higher by Rs84,228.421 million.

Total notes issued also increased in the current week over preceding week’s level. At Rs807,311.246 million it was higher by Rs7,703.86 million over the figure of Rs799,607.386 million recorded a week earlier. In the corresponding week last year it amounted to Rs723,164.632 million, which shows current week’s figure to be higher by Rs84,146.614 million over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs429,492.802 million or by Rs795.446 million over the preceding week’s figure of Rs428,697.356 million. When compared to the corresponding week a year ago, when the figure was Rs478,303.333 million, the current week’s figure is smaller by Rs48,810.531 million.

Balances held outside Pakistan in approved foreign exchange rose in the week under review. It stood at Rs141,757.185 million over preceding week’s figure of Rs140,940.691 million, showing a rise of Rs816.494 million. Compared to last year’s corresponding figure of Rs129,744.171 million, the current week’s figure higher is by Rs12,013.014 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, similar to preceding week’s figure. 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 Rs4,049.474 million to the industrial sector during the week under review, a rise of Rs52.95 million against preceding week’s figure of Rs3,996.524 million. When compared to last year’s corresponding figure of Rs1,168.823 million, the current week’s figure is higher by Rs2,880.651 million.

The export sector received Rs105,640.474 million against previous week’s figure of Rs106,544.819 million, a fall of Rs904.345 million. Current week’s figure was smaller by Rs478.673 million over last year’s corresponding figure of Rs106,119.147 million.

According to the weekly statement of position of all scheduled banks for the week ended February 4, 2006, deposits and other accounts of the scheduled banks stood at Rs2,599.776 billion, having risen by Rs11.194 billion over preceding week’s figure of Rs2,588.582 billion. Commercial banks deposits showed a rise of Rs11.356 billion over the week to Rs2,587.452 billion against preceding week’s Rs2,576.096 billion, while of specialized banks it declined by Rs0.162 million to Rs12.324 billion, over previous week’s Rs12.486 billion.

Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs323.016 billion over preceding week’s figure of Rs307.044 billion, a rise of Rs15.972 billion. This was primarily due to an increase in the borrowings by commercial banks, which rose to Rs240.422 billion against previous week’s Rs224.341 billion, or by Rs16.081 billion, while borrowings by specialised banks declined to Rs82.594 billion over preceding week’s figure of Rs82.704 billion, a fall of Rs0.11 billion.

Gross advances stood at Rs2,014.664 billion in the week under review, a rise of Rs5.457 billion over preceding week’s figure of Rs2,009.207 billion. Advances by commercial banks rose to Rs1,910.206 billion against earlier week’s figure of Rs1,904.860 billion, higher by Rs5.346 billion.

Investments of all scheduled banks increased in the week by Rs6.232 billion to Rs761.957 billion against preceding week’s figure of Rs755.725 billion. Commercial banks investment level rose to Rs741.697 billion, from earlier week’s Rs734.468 billion, higher by Rs7.229 billion, while of specialized banks it stood at Rs20.260 billion against previous week’s Rs21.257 billion, a fall of Rs0.997 billion.

Cash and balances with treasury banks of all scheduled banks decreased by Rs16.097 billion during the week to stand at Rs236.324 billion against earlier week’s Rs252.421 billion. The figure for commercial banks fell to Rs234.427 billion against preceding week’s figure of Rs250.520 billion, a fall of Rs16.093 billion. For specialized banks the fall was to the tune of Rs0.003 million to Rs1.898 billion, against earlier week’s figure of Rs1.901 billion.

Total assets of scheduled banks stood at Rs3,411.928 billion, an increase of Rs28.599 billion, over preceding week’s figure of Rs3,383.329 billion.