June 05, 2006	Monday	Jumadi-ul-Awwal 8, 1427

THE State Bank of Pakistan on May 31 sold Rs4 billion of Treasury bills in a five-day repo operation at 8.5 per cent. According to the Statement of Affairs of the State Bank of Pakistan, for the week ended May 20, 2006, both notes in circulation and those issued decreased during the week. Notes in circulation stood at Rs806,603.447 million against earlier week’s figure of Rs811,337.604 million, a fall of Rs4,734.157 million. When compared to the corresponding week a year ago when it was Rs726,885.783 million, the current week’s figure is higher by Rs79,717.664 million.

Total notes issued also decreased in the current week over preceding week’s level. At Rs806,748.150 million it was lower by Rs4,704.074 million over the figure of Rs811,452.224 million recorded a week earlier. In the corresponding week last year it amounted to Rs727,041.246 million, which shows current week’s figure to be higher by Rs79,706.904 million over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs550,402.144 million or by Rs8,871.921 million over preceding week’s figure of Rs541,530.223 million. When compared to the corresponding week a year ago, when the figure was Rs492,726.544 million, the current week’s figure is larger by Rs57,675.600 million.

Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs117,677.193 million over preceding week’s figure of Rs129,232.329 million, showing a fall of Rs11,555.136 million. Compared to last year’s corresponding figure of Rs127,869.165 million, the current week’s figure is lower by Rs10,191.972 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, similar to preceding week’s figure. 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 Rs6,279.515 million to the industrial sector during the week under review, a rise of Rs50.099 million against preceding week’s figure of Rs6,229.416 million. When compared to last year’s corresponding figure of Rs1,338.274 million, the current week’s figure is higher by Rs4,941.241 million.

The export sector received Rs109,704.885 million against previous week’s figure of Rs109,213.649 million, a rise of Rs491.236 million. Current week’s figure was smaller by Rs1,519.139 million over last year’s corresponding figure of Rs111,224.024 million.

According to the weekly statement of position of all scheduled banks for the week ended May 20, 2006, deposits and other accounts of the scheduled banks stood at Rs2,712.612 billion, rising by Rs5.224 billion over preceding week’s figure of Rs2,707.388 billon. Commercial banks deposits showed a rise of Rs5.364 billion over the week to Rs2,700.972 billion against preceding week’s Rs2,695.608 billion, and of specialized banks it fell by Rs0.14 billion to Rs11.640 billion, over previous week’s Rs11.780 billion.

Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs356.922 billion over preceding week’s figure of Rs333.349 billion, a rise of Rs23.573 billion. This was primarily due to a rise in the borrowings by commercial banks, which rose to Rs270.353 billion against previous week’s Rs246.785 billion, or by Rs23.568 billion, while borrowings by specialised banks stood at Rs86.569 billion.

Gross advances stood at Rs2,105.223 billion in the week under review, a rise of Rs4.697 million over preceding week’s figure of Rs2,100.526 billion. Advances by commercial banks rose to Rs2,015.112 billion against earlier week’s figure of Rs2,010.486 billion, larger by Rs4.626 billion, and of specialized banks it stood at Rs90.111 billion.

Investments of all scheduled banks declined in the week by Rs0.458 billion to Rs822.211 billion against preceding week’s figure of Rs822.669 billion. Commercial banks investment level fell to Rs800.449 billion, from earlier week’s Rs800.662 billion, lower by Rs0.213 billion, while of specialized banks it stood at Rs21.763 billion against previous week’s Rs22.007 billion, a decline of Rs0.244 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs4.402 billion during the week to stand at Rs253.860 billion against earlier week’s Rs249.458 billion. The figure for commercial banks rose to Rs252.169 billion against preceding week’s figure of Rs247.875 billion, a rise of Rs4.294 billion. For specialized banks there was a fall to the tune of Rs0.108 billion to Rs1.691 billion, against earlier week’s figure of Rs1.583 billion.