October 23, 2006	Monday	Ramazan 29, 1427

THE State Bank of Pakistan sold Rs2 billion of Treasury Bills in 13-day repo operations at 8.6 per cent to mop up funds from money market.

On October 12, the State Bank of Pakistan sold Rs29,900 million Treasury Bills in six-day and 21-day outright repo operations to mop up funds from the money market. Around Rs26,900 million of T-bills were sold in a six-day repo at 8.45 per cent, while Rs3,000 million worth were sold in a 21-day repo operation at 8.55 per cent.

According to the Statement of Affairs of the State Bank of Pakistan for the week ended July 2October 07, 2006, both notes in circulation and those issued increased in the week. Notes in circulation stood at Rs826,573.610 million against earlier week’s figure of Rs812,447.661 million, a rise of Rs14,125.949 million. When compared to the corresponding week a year ago when it was Rs748,479.852 million, the current week’s figure is higher by Rs78,093.758 million.

Total notes issued also rose in the current week over preceding week’s level. At Rs826,726.820 million it was higher by Rs14,055.813 million over the figure of Rs812,671.007 million recorded a week earlier. In the corresponding week last year it amounted to Rs748,636.389 million, which shows current week’s figure to be higher by Rs78,090.431 million over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs520,413.451 million or by Rs20,279.583 million over preceding week’s figure of Rs500,133.868 million. When compared to the corresponding week a year ago, when the figure was Rs441,858.037 million, the current week’s figure is higher by Rs78,555.414 million.

Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs131,937.373 million over preceding week’s figure of Rs146,018.081 million, a fall of Rs14,080.708 million. Compared to last year’s corresponding figure of Rs146,067.513 million, the current week’s figure is smaller by Rs14,130.140 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 Rs62,682.785 million, against preceding week’s figure of Rs62,689.726, a fall of Rs6.941 million. The current week’s figure is larger by Rs2,458.723 million over last year’s corresponding figure of Rs60,224.062 million.

There was an inflow of Rs8,246.282 million to the industrial sector during the week under review, a rise of Rs64.227 million against preceding week’s figure of Rs8,182.055 million. When compared to last year’s corresponding figure of Rs1,659.073 million, the current week’s figure is higher by Rs6,587.209 million.

The export sector received Rs113,264.211 million against previous week’s figure of Rs110,708.869 million, a rise of Rs.2,555.342 million. Current week’s figure was larger by Rs13,735.085 million over last year’s corresponding figure of Rs99,529.126 million.

According to the weekly statement of position of all scheduled banks for the week ended October 7, 2006, deposits and other accounts of the scheduled banks stood at Rs2,805.876 billion, lower by Rs10.574 billion over preceding week’s figure of Rs2,816.450 billon. Commercial banks deposits showed a decline of Rs10.369 billion over the week to Rs2,793.580 billion, against preceding week’s Rs2,803.949 billion, while of specialized banks it fell by Rs0.205 billion to Rs12.296 billion, over previous week’s Rs12.501 billion.

Borrowings by all scheduled banks fell during the week over preceding week’s figure. It fell to Rs370.609 billion over preceding week’s figure of Rs385.035 billion, a fall of Rs14.426 billion. This was primarily due to a decrease in the borrowings by commercial banks, which fell to Rs282.616 billion against previous week’s Rs296.880 billion, or by Rs14.264 billion, while borrowings by specialised banks stood at Rs87.992 billion, lower by Rs0.163 billion over preceding week’s figure of Rs88.155 billion.

Gross advances stood at Rs2,223.706 billion in the week under review, a decrease of Rs7.959 billion over preceding week’s figure of Rs2,231.665 billion. Advances by commercial banks decline to Rs2,126.009 billion against earlier week’s figure of Rs2,133.754 billion, smaller by Rs7.745 billion, while of specialized banks it stood at Rs97.697 billion.

Investments of all scheduled banks decreased further in the week by Rs10.027 billion to Rs780.030 billion against preceding week’s figure of Rs790.057 billion. Commercial banks investment fell to Rs768.812 billion, from earlier week’s Rs777.667 billion, smaller by Rs8.855 billion, while of specialized banks it stood at Rs11.218 billion against previous week’s Rs12.390 billion, smaller by Rs1.172 billion.

Cash and balances with treasury banks of all scheduled banks declined by Rs9.814 billion during the week to stand at Rs309.486 billion against earlier week’s Rs319.300 billion. The figure for commercial banks also fell to Rs307.264 billion against preceding week’s figure of Rs317.113 billion, a fall of Rs9.849 billion. For specialized banks there was an increase of Rs0.035 billion to Rs2.222 billion, against earlier week’s figure of Rs2.187 billion.

Total assets of scheduled banks stood at Rs3,766.489 billion, lower by Rs32.312 billion, over preceding week’s figure of Rs3,798.801 billion. Meanwhile, commercial banks assets stood at Rs3,649.202 billion, lower by Rs31.354 billion over previous week’s figure of Rs3,680.556 billion. Specialized banks assets fell by Rs0.957 billion to Rs117.288 billion against previous week’s Rs118.245 billion.