May 29, 2006	Monday	Jumadi-ul-Awwal 1, 1427

AT the Treasury bill auction on May 24, the State Bank of Pakistan received total bids worth Rs2.2 billion. It sold Rs96.03 million worth of six-month bills, Rs98.17 million worth of three-month bills and Rs919.4 million worth of 12-month paper.

The SBP kept the cut-off yields on three and 12-month papers unchanged at 8.1 per cent and 8.79 per cent, respectively. The benchmark on six-month Treasury bills moved marginally to 8.29 per cent from 8.2889 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended May 13, 2006, both notes in circulation and those issued increased during the week. Notes in circulation stood at Rs811,337.604 million against earlier week’s figure of Rs800,965.800 million, a rise of Rs10,371.804 million. When compared to the corresponding week a year ago when it was Rs729,165.584 million, the current week’s figure is higher by Rs82,172.02 million.

Total notes issued also increased in the current week over preceding week’s level. At Rs811,452.224 million it was larger by Rs10,312.72 million over the figure of Rs801,139.504 million recorded a week earlier. In the corresponding week last year it amounted to Rs729,336.987 million, which shows current week’s figure to be higher by Rs82,115.237 million over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs541,530.223 million or by Rs2,509.058 million over preceding week’s figure of Rs539,021.165 million. When compared to the corresponding week a year ago, when the figure was Rs493,167.771 million, the current week’s figure is larger by Rs48,362.452 million.

Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs129,232.329 million over preceding week’s figure of Rs130,361.318 million, showing a fall of Rs1,128.989 million. Compared to last year’s corresponding figure of Rs129,384.307 million, the current week’s figure is lower by Rs151.978 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 Rs61,643.982 million, against preceding week’s figure of Rs61,650.923 million, showing a decline of Rs6.941 million. The current week’s figure is larger by Rs2,072.545 million over last year’s corresponding figure of Rs59,571.437 million.

There was an inflow of Rs6,229.416 million to the industrial sector during the week under review, a rise of Rs109.08 million against preceding week’s figure of Rs6,120.336 million. When compared to last year’s corresponding figure of Rs1,338.274 million, the current week’s figure is higher by Rs4,891.142 million.

The export sector received Rs109,213.649 million against previous week’s figure of Rs109,270.972 million, a fall of Rs57.323 million. Current week’s figure was smaller by Rs2,065.706 million over last year’s corresponding figure of Rs111,279.355 million.

According to the weekly statement of position of all scheduled banks for the week ended May 13, 2006, deposits and other accounts of the scheduled banks stood at Rs2,707.388 billion, rising by Rs9.761 billion over preceding week’s figure of Rs2,697.627 billon. Commercial banks deposits showed a rise of Rs9.645 billion over the week to Rs2,695.608 billion against preceding week’s Rs2,685.963 billion, and of specialized banks it rose by Rs0.116 billion to Rs11.780 billion, over previous week’s Rs11.664 billion.

Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs333.349 billion over preceding week’s figure of Rs330.949 billion, a rise of Rs2.4 billion. This was primarily due to a rise in the borrowings by commercial banks, which rose to Rs246.785 billion against previous week’s Rs244.396 billion, or by Rs2.389 billion, while borrowings by specialised banks stood at Rs86.564 billion.

Gross advances stood at Rs2,100.526 billion in the week under review, a rise of Rs9.5 billion over preceding week’s figure of Rs2,091.026 billion. Advances by commercial banks rose to Rs2,010.486 billion against earlier week’s figure of Rs2,001.090 billion, larger by Rs9.396 billion, and of specialized banks it stood at Rs90.040 billion.

Investments of all scheduled banks declined in the week by Rs4.651 billion to Rs822.669 billion against preceding week’s figure of Rs827.320 billion. Commercial banks investment level fell to Rs800.662 billion, from earlier week’s Rs805.259 billion, lower by Rs4.597 billion, while of specialized banks it stood at Rs22.007 billion against previous week’s Rs22.061 billion, a decline of Rs0.054 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs4.067 billion during the week to stand at Rs249.458 billion against earlier week’s Rs245.391 billion. The figure for commercial banks rose to Rs247.875 billion against preceding week’s figure of Rs243.760 billion, a rise of Rs4.115 billion. For specialized banks there was a fall to the tune of Rs0.049 billion to Rs1.583 billion, against earlier week’s figure of Rs1.632 billion.

Total assets of scheduled banks stood at Rs3,564.658 billion, an increase of Rs9.42 billion, over preceding week’s figure of Rs3,555.238 billion. Meanwhile, commercial banks assets stood at Rs3,452.832 billion, higher by Rs9.193 billion over previous week’s figure of Rs3,443.639 billion.