May 22, 2006	Monday	Rabi-us-Sani 23, 1427

THE State Bank of Pakistan sold Pakistan Investment Bonds (PIB) after a gap of two years. On May 18, the SBP raised Rs10.161 billion through the PIB auction, while bids offered were to the tune of Rs16.012 billion.

The Central Bank picked up Rs3.240 billion for 10-year PIBs at a cut-off yield of 9.87 per cent, Rs4.020 billion was raised for 5-year PIBs at 9.66 per cent and Rs2.901 billion was raised for 3-year PIBs at 9.45 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended May o6, 2006, both notes in circulation and those issued increased during the week.

Total notes issued also increased in the current week over preceding week’s level. At Rs801,139.504 million it was smaller by Rs17,482.670 million over the figure of Rs783,656.834 million recorded a week earlier. In the corresponding week last year it amounted to Rs724,256.087 million, which shows current week’s figure to be higher by Rs76,883.417 million over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs539,021.165 million or by Rs2,642.765 million over preceding week’s figure of Rs536,378.400 million. When compared to the corresponding week a year ago, when the figure was Rs473,264.827 million, the current week’s figure is larger by Rs65,756.338 million.

Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs130,361.318 million over preceding week’s figure of Rs132,237.907 million, showing a fall of Rs1,876.589 million. Compared to last year’s corresponding figure of Rs131,238.287 million, the current week’s figure is lower by Rs876.969 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 Rs2,079.486 million over last year’s corresponding figure of Rs59,571.437 million.

There was an inflow of Rs6,120.336 million to the industrial sector during the week under review, a rise of Rs6.61 million against preceding week’s figure of Rs6,113.726 million. When compared to last year’s corresponding figure of Rs1,362.170 million, the current week’s figure is higher by Rs4,758.166 million.

The export sector received Rs109,270.972 million against previous week’s figure of Rs109,030.114 million, a rise of Rs240.858 million. Current week’s figure was smaller by Rs576.918 million over last year’s corresponding figure of Rs109,847.890 million.

According to the weekly statement of position of all scheduled banks for the week ended May 06, 2006, deposits and other accounts of the scheduled banks stood at Rs2,697.627 billion, rising by Rs1.688 billion over preceding week’s figure of Rs2,695.939 billon. Commercial banks deposits showed a rise of Rs1.777 billion over the week to Rs2,685.963 billion against preceding week’s Rs2,684.186 billion, while of specialized banks it fell by Rs0.089 billion to Rs11.664 billion, over previous week’s Rs11.753 billion.

Borrowings by all scheduled banks declined during the week over preceding week’s figure. It fell to Rs330.949 billion over preceding week’s figure of Rs334.651 billion, a fall of Rs3.702 billion. This was primarily due to a decline in the borrowings by commercial banks, which fell to Rs244.396 billion against previous week’s Rs248.098 billion, or by Rs3.702 billion, while borrowings by specialised banks stood at Rs86.554 billion.

Gross advances stood at Rs2,091.026 billion in the week under review, a rise of Rs13.95 billion over preceding week’s figure of Rs2,077.076 billion. Advances by commercial banks rose to Rs2,001.090 billion against earlier week’s figure of Rs1,990.194 billion, larger by Rs10.896 billion.

Investments of all scheduled banks declined in the week by Rs0.53 billion to Rs827.320 billion against preceding week’s figure of Rs827.850 billion. Commercial banks investment level fell to Rs805.259 billion, from earlier week’s Rs805.804 billion, lower by Rs0.545 billion, while of specialized banks it stood at Rs22.061 billion against previous week’s Rs22.046 billion, a increased of Rs0.015 billion.