May 8, 2006	Monday	Rabi-us-Sani 9, 1427

THE State Bank of Pakistan announced to sell the Pakistan Investment Bonds on May 18, after a gap of one year. It has set a target of Rs10 billion. The SBP will raise the amount through the auction of three, five and 10-year government bonds. It will raise Rs5 billion, Rs3 billion and Rs2 billion, respectively from the sale.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended April 22, 2006, both notes in circulation and those issued decreased during the week. Notes in circulation stood at Rs792,678.795 million against earlier week’s figure of Rs801,026.717 million, a fall of Rs8,347.922 million. When compared to the corresponding week a year ago when it was Rs709,975.116 million, the current week’s figure is higher by Rs82,703.679 million.

Total notes issued also decreased in the current week over preceding week’s level. At Rs792,854.131 million it was smaller by Rs8,324.068 million over the figure of Rs801,178.199 million recorded a week earlier. In the corresponding week last year it amounted to Rs710,160.215 million, which shows current week’s figure to be higher by Rs82,693.916 million over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs533,861.446 million or by Rs21,001.846 million over preceding week’s figure of Rs512,859.600 million. When compared to the corresponding week a year ago, when the figure was Rs505,308.820 million, the current week’s figure is larger by Rs28,552.626 million.

Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs127,862.806 million over preceding week’s figure of Rs159,342.519 million, showing a fall of Rs31,479.713 million. Compared to last year’s corresponding figure of Rs127,155.314 million, the current week’s figure is lower by Rs707.492 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 Rs61,650.923 million, similar to preceding week’s figure. The current week’s figure is larger by Rs2,641.486 million over last year’s corresponding figure of Rs59,009.437 million.

There was an inflow of Rs5,870.273 million to the industrial sector during the week under review, a rise of Rs163.429 million against preceding week’s figure of Rs5,706.844 million. When compared to last year’s corresponding figure of Rs1,302.866 million, the current week’s figure is higher by Rs4,567.407 million.

The export sector received Rs108,391.878 million against previous week’s figure of Rs106,513.032 million, a rise of Rs1,878.846 million. Current week’s figure was smaller by Rs833.843 million over last year’s corresponding figure of Rs109,225.721 million.

According to the weekly statement of position of all scheduled banks for the week ended April 15, 2006, deposits and other accounts of the scheduled banks stood at Rs2,654.416 billion, having fallen by Rs37.211 billion over preceding week’s figure of Rs2,691.627 billon. Commercial banks deposits showed a fall of Rs37.199 billion over the week to Rs2,642.772 billion against preceding week’s Rs2,679.971 billion, while of specialized banks it fell by Rs0.011 billion to Rs11.644 billion, over previous week’s Rs11.655 billion.

Borrowings by all scheduled banks declined during the week over preceding week’s figure. It fell to Rs351.684 billion over preceding week’s figure of Rs353.947 billion, a fall of Rs2.263 billion. This was primarily due to a decline in the borrowings by commercial banks, which fell to Rs268.160 billion against previous week’s Rs270.469 billion, or by Rs2.309 billion, while borrowings by specialised banks stood at Rs83.524 billion.

Gross advances stood at Rs2,064.667 billion in the week under review, a fall of Rs7.096 billion over preceding week’s figure of Rs2,071.763 billion. Advances by commercial banks rose to Rs1,972.275 billion against earlier week’s figure of Rs1,965.965 billion, larger by Rs6.31 billion.

Investments of all scheduled banks rose in the week by Rs13.761 billion to Rs830.225 billion against preceding week’s figure of Rs816.464 billion. Commercial banks investment level rose to Rs811.545 billion, from earlier week’s Rs797.824 billion, higher by Rs13.721 billion, while of specialized banks it stood at Rs18.680 billion against previous week’s Rs18.640 billion, a rise of Rs0.04 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs8.347 billion during the week to stand at Rs245.451 billion against earlier week’s Rs237.104 billion. The figure for commercial banks rose to Rs243.753 billion against preceding week’s figure of Rs235.353 billion, a rise of Rs8.4 billion. For specialized banks there was however, a fall to the tune of Rs0.053 billion to Rs1.698 billion, against earlier week’s figure of Rs1.751 billion.