July 10, 2006	Monday	Jumadi-ul-Sani 13, 1427

AT the auction on July 5, the State Bank of Pakistan mopped up Rs79.675 billion, through three, six, and 12 months Treasury Bills. The offered amount was Rs96.375 billion.

The cut-off yields remained unchanged. Rs5.7 billion was raised through the auction of six-month T-bills, Rs44.1 billion from three-month bills and Rs29.287 billion from 12-month bills. The cut-off yields for these three were 8.32 per cent, 8.48 per cent and 8.79 per cent, respectively.

On July 6, the SBP sold T-bills worth Rs28.2 billion in a four days and two days repo operation to mop up funds from the money market. On July 7, the Central Bank sold Rs4700 million of T-bills in a three-day repo operation at 7.70 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 24, 2006, both notes in circulation and those issued decreased during the week. Notes in circulation stood at Rs795,364.131 million against earlier week’s figure of Rs802,625.549 million, a fall of Rs7,261.418 million. When compared to the corresponding week a year ago when it was Rs719,040.991 million, the current week’s figure is higher by Rs76,323.140 million.

Total notes issued also decreased in the current week over preceding week’s level. At Rs795,490.510 million it was lower by Rs7,307.312 million over the figure of Rs802,797.822 million recorded a week earlier. In the corresponding week last year it amounted to Rs719,168.821 million, which shows current week’s figure to be higher by Rs76,321.689 million over last year’s corresponding figure.

Approved foreign exchange rose in the week to Rs547,995.038 million or by Rs9,841.780 million over preceding week’s figure of Rs538,153.258 million. When compared to the corresponding week a year ago, when the figure was Rs480,882.588 million, the current week’s figure is larger by Rs67,112.450 million.

Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs123,578.600 million over preceding week’s figure of Rs129,090.389 million, showing a fall of Rs5,511.789 million. Compared to last year’s corresponding figure of Rs133,766.065 million, the current week’s figure is lower by Rs10,187.465 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 Rs62,193.982 million, against preceding week’s figure of Rs61,643.982 million, showing a rise of Rs550 million. The current week’s figure is larger by Rs1,622.545 million over last year’s corresponding figure of Rs60,571.437 million.

There was an inflow of Rs6,971.484 million to the industrial sector during the week under review, a rise of Rs90.160 million against preceding week’s figure of Rs6,881.324 million. When compared to last year’s corresponding figure of Rs1,554.261 million, the current week’s figure is higher by Rs5,417.223 million.

The export sector received Rs109,346.908 million against previous week’s figure of Rs109,918.929 million, a fall of Rs572.021 million. Current week’s figure was higher by Rs419.796 million over last year’s corresponding figure of Rs108,927.112 million.