June 26, 2006	Monday	Jumadi-ul-Awwal 29, 1427

THE State Bank of Pakistan on June 22, picked up only Rs14.8 billion, against the offer of Rs40 billion, leaving huge liquidity in the banking system.

A day earlier the banks had received Rs56 billion as inflows, but refrained from participating in the auction of the Treasury Bills.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 10, 2006, both notes in circulation and those issued increased during the week. Notes in circulation stood at Rs806,802.526 million against earlier week’s figure of Rs793,533.429 million, a rise of Rs13,269.097 million. When compared to the corresponding week a year ago when it was Rs731,216.006 million, the current week’s figure is higher by Rs75,586.52 million.

Total notes issued also increased in the current week over preceding week’s level. At Rs806,996.058 million it was higher by Rs13,293.448 million over the figure of Rs793,702.610 million recorded a week earlier. In the corresponding week last year it amounted to Rs731,415.679 million, which shows current week’s figure to be higher by Rs75,580.379 million over last year’s corresponding figure.

Approved foreign exchange declined in the week to Rs534,800.275 million or by Rs5,973.147 million over preceding week’s figure of Rs540,773.422 million. When compared to the corresponding week a year ago, when the figure was Rs482,412.130 million, the current week’s figure is larger by Rs52,388.145 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs129,109.553 million over preceding week’s figure of Rs124,766.549 million, showing a rise of Rs4,343.004 million. Compared to last year’s corresponding figure of Rs122,083.289 million, the current week’s figure is lower by Rs7,026.264 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 Rs6,657.626 million to the industrial sector during the week under review, a rise of Rs106.714 million against preceding week’s figure of Rs6,550.912 million. When compared to last year’s corresponding figure of Rs1,365.062 million, the current week’s figure is higher by Rs5,292.564 million.

The export sector received Rs109,109.971 million against previous week’s figure of Rs108,768.943 million, a rise of Rs341.028 million. Current week’s figure was smaller by Rs302.481 million over last year’s corresponding figure of Rs109,412.452 million.

According to the weekly statement of position of all scheduled banks for the week ended June 10, 2006, deposits and other accounts of the scheduled banks stood at Rs2,748.171 billion, smaller by Rs6.998 billion over preceding week’s figure of Rs2,755.169 billon. Commercial banks deposits showed a fall of Rs7.158 billion over the week to Rs2,736.175 billion against preceding week’s Rs2,743.333 billion, and of specialized banks it fell by Rs0.161 billion to Rs11.996 billion, over previous week’s Rs11.835 billion.

Borrowings by all scheduled banks declined during the week over preceding week’s figure. It fell to Rs352.323 billion over preceding week’s figure of Rs352.383 billion, a fall of Rs0.06 billion. This was primarily due to a fall in the borrowings by commercial banks, which fell to Rs265.749 billion against previous week’s Rs265.780 billion, or by Rs0.031 billion, while borrowings by specialised banks stood at Rs86.574 billion, against preceding week’s Rs86.604 billion, a fall of Rs0.03 billion.

Gross advances stood at Rs2,107.866 billion in the week under review, a fall of Rs8.424 million over preceding week’s figure of Rs2,116.290 billion. Advances by commercial banks fell to Rs2,017.190 billion against earlier week’s figure of Rs2,025.878 billion, smaller by Rs8.688 billion, while of specialized banks it stood at Rs90.676 billion.

Investments of all scheduled banks increased in the week by Rs3.68 billion to Rs827.110 billion against preceding week’s figure of Rs823.430 billion. Commercial banks investment level increased to Rs806.325 billion, from earlier week’s Rs802.214 billion, larger by Rs4.111 billion, while of specialized banks it stood at Rs20.785 billion against previous week’s Rs21.216 billion, a decline of Rs0.431 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs8.789 billion during the week to stand at Rs256.167 billion against earlier week’s Rs247.378 billion. The figure for commercial banks rose to Rs254.437 billion against preceding week’s figure of Rs245.706 billion, a rise of Rs8.731 billion. For specialized banks there was an increase decline of Rs0.058 billion to Rs1.730 billion, against earlier week’s figure of Rs1.672 billion.