October 09, 2006	Monday	Ramazan 15, 1427

TO mop up funds from the market, the State Bank of Pakistan sold Rs10.5 billion worth of Treasury Bills on October 2, in a 10-day repo operation at 8.50 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended September 30, 2006, both notes in circulation and those issued increased in the week. Notes in circulation stood at Rs812,447.661 million against earlier week’s figure of Rs810,337.900 million, a rise of Rs2,109.761 million. When compared to the corresponding week a year ago when it was Rs780,382.457 million, the current week’s figure is higher by Rs32,065.204 million.

Total notes issued also rose in the current week over preceding week’s level. At Rs812,671.007 million it was higher by Rs2,192.832 million over the figure of Rs810,478.175 million recorded a week earlier. In the corresponding week last year it amounted to Rs780,528.629 million, which shows current week’s figure to be higher by Rs32,142.378 million over last year’s corresponding figure.

Approved foreign exchange declined in the week to Rs500,133.868 million or by Rs9,810.388 million over preceding week’s figure of Rs509,944.256 million. When compared to the corresponding week a year ago, when the figure was Rs416,574.132 million, the current week’s figure is higher by Rs83,559.736 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs146,018.081 million over preceding week’s figure of Rs133,466.260 million, a rise of Rs12,551.821 million. Compared to last year’s corresponding figure of Rs143,956.683 million, the current week’s figure is smaller by Rs2,061.398 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 Rs62,689.726 million, similar to preceding week’s figure. The current week’s figure is larger by Rs1,562.83 million over last year’s corresponding figure of Rs61,126.896 million.

There was an inflow of Rs8,182.055 million to the industrial sector during the week under review, a rise of Rs143.408 million against preceding week’s figure of Rs8,038.647 million. When compared to last year’s corresponding figure of Rs2,360.611 million, the current week’s figure is higher by Rs5,821.444 million.

The export sector received Rs110,708.869 million against previous week’s figure of Rs107,325.432 million, a rise of Rs3,383.437 million. Current week’s figure was larger by Rs5,771.013 million over last year’s corresponding figure of Rs104,937.856 million.

According to the weekly statement of position of all scheduled banks for the week ended September 23, 2006, deposits and other accounts of the scheduled banks stood at Rs2,718.757 billion, lower by Rs88.980 billion over preceding week’s figure of Rs2,807.737 billon. Commercial banks deposits showed a decrease of Rs88.445 billion over the week to Rs2,706.562 billion, against preceding week’s Rs2,795.007 billion, while of specialized banks it fell by Rs0.778 billion to Rs12.195 billion, over previous week’s Rs12.973 billion.

Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs381.429 billion over preceding week’s figure of Rs367.069 billion, a rise of Rs14.360 billion. This was primarily due to an increase in the borrowings by commercial banks, which rose to Rs293.499 billion against previous week’s Rs279.314 billion, or by Rs14.185 billion, while borrowings by specialised banks stood at Rs87.930 billion.

Gross advances stood at Rs2,199.260 billion in the week under review, an increase of Rs3.786 billion over preceding week’s figure of Rs2,195.474 billion. Advances by commercial banks rose to Rs2,100.587 billion against earlier week’s figure of Rs2,097.006 billion, larger by Rs3.581 billion, while of specialized banks it stood at Rs98.674 billion.

Investments of all scheduled banks decreased in the week by Rs1.536 billion to Rs815.012 billion against preceding week’s figure of Rs816.548 billion. Commercial banks investment fell to Rs802.764 billion, from earlier week’s Rs804.836 billion, smaller by Rs2.072 billion, while of specialized banks it stood at Rs12.248 billion against previous week’s Rs11.712 billion, larger by Rs0.536 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs10.514 billion during the week to stand at Rs292.232 billion against earlier week’s Rs281.718 billion. The figure for commercial banks also rose to Rs290.049 billion against preceding week’s figure of Rs279.606 billion, a rise of Rs10.443 billion. For specialized banks there was an increase of Rs0.072 billion to Rs2.183 billion, against earlier week’s figure of Rs2.111 billion.

Total assets of scheduled banks stood at Rs3,728.731 billion, lower by Rs8.254 billion, over preceding week’s figure of Rs3,736.985 billion. Meanwhile, commercial banks assets stood at Rs3,612.413 billion, lower by Rs8.677 billion over previous week’s figure of Rs3,621.090 billion. Specialized banks assets rose by Rs0.422 billion to Rs116.318 billion against previous week’s Rs115.896 billion.