THE State Bank of Pakistan on March 9 pumped Rs10 billion into the inter-bank market to ease the liquidity crunch. The overnight rates however, continue to remain high at 8.9 per cent.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended March 4, 2006, both notes in circulation and those issued increased during the week. Notes in circulation stood at Rs797,533.415 million against the earlier week’s figure of Rs792,536.655 million, a rise of Rs4,996.76 million. When compared to the corresponding week a year ago when it was Rs713,601.092 million, the current week’s figure is higher by Rs83,932.323 million.
Total notes issued also rose in the current week over the preceding week’s level. At Rs797,712.294 million it was higher by Rs5,018.184 million over the figure of Rs792,694.110 million recorded a week earlier. In the corresponding week last year it amounted to Rs713,755.041 million, which shows the current week’s figure to be higher by Rs83,957.253 million over the last year’s corresponding figure.
Approved foreign exchange increased in the week to Rs446,079.178 million or by Rs20,855.179 million over the preceding week’s figure of Rs425,223.999 million. When compared to the corresponding week a year ago, when the figure was Rs477,819.724 million, the current week’s figure is smaller by Rs31,740.546 million.
Balances held outside Pakistan in approved foreign exchange declined in the week under review. It stood at Rs133,673.387 million over preceding week’s figure of Rs147,660.594 million, showing a fall of Rs13,987.207 million. Compared to last year’s corresponding figure of Rs130,717.741 million, the current week’s figure higher is by Rs2,955.646 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 preceding week’s figure. The current week’s figure is larger by Rs1,131.427 million over last year’s corresponding figure of Rs59,576.437 million.
There was an inflow of Rs5,278.412 million to the industrial sector during the week under review, a rise of Rs365.84 million against preceding week’s figure of Rs4,912.572 million. When compared to last year’s corresponding figure of Rs1,262.496 million, the current week’s figure is higher by Rs4,015.916 million.
The export sector received Rs104,783.960 million against previous week’s figure of Rs102,600.573 million, a rise of Rs2,183.387 million. Current week’s figure was larger by Rs1,430.411 million over last year’s corresponding figure of Rs103,353.549 million.
According to the weekly statement of position of all scheduled banks for the week ended February 25, 2006, deposits and other accounts of the scheduled banks stood at Rs2,630.445 bn, having risen by Rs24.893bn over preceding week’s figure of Rs2,605.552 billon. Commercial banks deposits showed a rise of Rs24.264bn over the week to Rs2,617.661bn against preceding week’s Rs2,593.397bn, while of specialized banks it rose by Rs0.631bn to Rs12.785bn, over previous week’s Rs12.154bn.
Borrowings by all scheduled banks declined during the week over preceding week’s figure. It fell to Rs318.523bn over preceding week’s figure of Rs320.331bn, a fall of Rs1.808bn. This was primarily due to a decline in the borrowings by commercial banks, which fell to Rs235.924bn against previous week’s Rs237.727bn, or by Rs1.803bn, while borrowings by specialised banks stood at Rs82.599bn against preceding week’s Rs82.604bn.
Gross advances stood at Rs2,042.092bn in the week under review, a rise of Rs15.425bn over preceding week’s figure of Rs2,026.667bn. Advances by commercial banks rose to Rs1,937.253bn against earlier week’s figure of Rs1,921.868bn, higher by Rs15.385bn.
Investments of all scheduled banks declined in the week by Rs0.337bn to Rs759.919bn against preceding week’s figure of Rs760.256bn. Commercial banks investment level rose to Rs740.996bn, from earlier week’s Rs739.999bn, higher by Rs0.997bn, while of specialized banks it stood at Rs18.923bn against previous week’s Rs20.257bn, a fall of Rs1.334bn.
Cash and balances with treasury banks of all scheduled banks increased by Rs2.988bn during the week to stand at Rs248.912bn against earlier week’s Rs245.924bn. The figure for commercial banks rose to Rs247.047bn against preceding week’s figure of Rs244.195bn, a rise of Rs2.852bn. For specialized banks the rise was to the tune of Rs0.136bn to Rs1.865bn, against earlier week’s figure of Rs1.729bn.
THE State Bank of Pakistan on March 9 pumped Rs10 billion into the inter-bank market to ease the liquidity crunch. The overnight rates however, continue to remain high at 8.9 per cent.
