February 05, 2007	Monday	Muharram 16, 1428

ON January 31, the State Bank of Pakistan mopped up Rs70.358 billion of excess liquidity from the market. The cut off yields remained unchanged at 8.8142 per cent for 6-month, 8.6417 per cent for 3-month and 9.0046 per cent for 12-month T-bills.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended July 2 January 20, 2007, both notes in circulation and those issued decreased further in the week. Notes in circulation stood at Rs892,512.965 million against earlier week’s figure of Rs905,448.197 million, a fall of Rs12,935.232 million. When compared to the corresponding week a year ago when it was Rs809,631.431 million, the current week’s figure is higher by Rs82,881.534 million.

Total notes issued also fell in the current week over preceding week’s level. At Rs892,719.050 million it was lower by Rs12,899.782 million over the figure of Rs905,618.832 million recorded a week earlier. In the corresponding week last year it amounted to Rs809,827.029 million, which shows current week’s figure to be higher by Rs82,892.021 million over last year’s corresponding figure.

Approved foreign exchange decreased in the week to Rs543,168.359 million or by Rs5,210.095 million over preceding week’s figure of Rs537,958.264 million. When compared to the corresponding week a year ago, when the figure was Rs426,317.456 million, the current week’s figure is higher by Rs116,850.903 million.

Balances held outside Pakistan in approved foreign exchange declined in the week under review. It stood at Rs131,430.285 million over preceding week’s figure of Rs137,194.238 million, a fall of Rs5,763.953 million. Compared to last year’s corresponding figure of Rs148,457.765 million, the current week’s figure is smaller by Rs17,027.48 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 Rs59,183.528 million, similar to preceding week’s figure. The current week’s figure is smaller by Rs1,524.336 million over last year’s corresponding figure of Rs60,707.864 million.

There was an inflow of Rs41,386.228 million to the industrial sector during the week under review, a rise of Rs143.758 million against preceding week’s figure of Rs41,242.470 million. When compared to last year’s corresponding figure of Rs3,401.153 million, the current week’s figure is higher by Rs37,985.075 million.

The export sector received Rs133,542.915 million against previous week’s figure of Rs131,971.578 million, a rise of Rs1,571.337 million. Current week’s figure was larger by Rs26,861.695 million over last year’s corresponding figure of Rs106,681.220 million. According to the weekly statement of position of all scheduled banks for the week ended January 20, 2007, deposits and other accounts of the scheduled banks stood at Rs2,952.651 billion, higher by Rs8.015 billion over preceding week’s figure of Rs2,944.636 billon. Commercial banks deposits showed a rise of Rs8.072 billion over the week to Rs2,940.638 billion, against preceding week’s Rs2,932.566 billion, while of specialized banks it fell by Rs0.058 billion to Rs12.013 billion, over previous week’s Rs12.071 billion.

Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs386.744 billion over preceding week’s figure of Rs384.233 billion, a rise of Rs2.511 billion. This was primarily due to an increase in the borrowings by commercial banks, which rose to Rs301.658 billion against previous week’s Rs299.540 billion, or by Rs2.118 billion, while borrowings by specialised banks stood at Rs85.086 billion, against preceding week’s figure of Rs84.692 billion, an increase of Rs0.394 billion.

Gross advances stood at Rs2,366.502 billion in the week under review, a rise of Rs0.545 billion over preceding week’s figure of Rs2,365.957 billion. Advances by commercial banks decreased to Rs2,270.735 billion against earlier week’s figure of Rs2,272.073 billion, lower by Rs1.338 billion, while of specialized banks it stood at Rs95.767 billion against preceding week’s Rs93.884 billion, showing a increase of Rs1.883 billion.

Investments of all scheduled banks increased in the week by Rs29.737 billion to Rs791.284 billion against preceding week’s figure of Rs761.547 billion. Commercial banks investment rose to Rs777.317 billion, from earlier week’s Rs748.399 billion, higher by Rs28.918 billion, while of specialized banks it stood at Rs13.967 billion against previous week’s Rs13.149 billion, higher by Rs0.818 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs8.858 billion during the week to stand at Rs326.891 billion against earlier week’s Rs318.033 billion. The figure for commercial banks also rose to Rs324.689 billion against preceding week’s figure of Rs315.732 billion, a rise of Rs8.957 billion. For specialized banks there was a fall of Rs0.099 billion to Rs2.202 billion, against earlier week’s figure of Rs2.301 billion.

Total assets of scheduled banks stood at Rs3,973.090 billion, higher by Rs10.231 billion, over preceding week’s figure of Rs3,962.859 billion. Meanwhile, commercial banks assets stood at Rs3,858.496 billion, larger by Rs9.502 billion over previous week’s figure of Rs3,848.994 billion. Specialized banks assets rose by Rs0.73 billion to Rs114.594 billion against previous week’s Rs113.864 billion.