June 11, 2007	Monday	Jamadi-ul-Awwal 25, 1428

On June 5, the State Bank of Pakistan changed the cut off yields on different maturities of PIBs. On 10-year bonds, the cut off yield was reduced to 10.1244 from 10.13.22 per cent and the bank picked up Rs6.534 billion.

The cut off yield on 15-year PIBs was slightly raised to 10.98.57 from 10.98 per cent and raised Rs823 million.

For 20-year and 30-year bonds a sum of Rs1.625 billion and Rs3.607 billion were raised at 11.2016 and 11.5937 per cent respectively. And for 5-year and 3-year bonds the cut off yield was set at 9.5480 and 9.3180 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended July 2May 26, 2007, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs903,257.265 million against earlier week’s figure of Rs914,800.095 million, a fall of Rs11,542.83 million. When compared to the corresponding week a year ago when it was Rs794,210.379 million, the current week’s figure is higher by Rs109,046.886 million.

Total notes issued also fell in the current week over preceding week’s level. At Rs903,425.517 million it was smaller by Rs11,505.232 million over the figure of Rs914,930.749 million recorded a week earlier. In the corresponding week last year it amounted to Rs794,341.043 million, which shows current week’s figure to be higher by Rs109,084.474 million over last year’s corresponding figure.

Approved foreign exchange decreased in the week to Rs599,110.443 million or by Rs2,356.545 million over preceding week’s figure of Rs601,466.988 million. When compared to the corresponding week a year ago, when the figure was Rs547,106.800 million, the current week’s figure is higher by Rs52,003.643 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs136,311.109 million over preceding week’s figure of Rs133,793.387 million, a rise of Rs2,517.722 million. Compared to last year’s corresponding figure of Rs120,549.907 million, the current week’s figure is larger by Rs15,761.202 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 Rs60,183.528 million, similar to preceding week’s figure. The current week’s figure is smaller by Rs1,460.454 million over last year’s corresponding figure of Rs61,643.982 million.

There was an inflow of Rs42,205.776 million to the industrial sector during the week under review, a rise of Rs233.464 million against preceding week’s figure of Rs41,972.312 million. When compared to last year’s corresponding figure of Rs6,337.311 million, the current week’s figure is higher by Rs35,868.465 million.

The export sector received Rs138,394.036 million against previous week’s figure of Rs138,001.770 million, a rise of Rs392.266 million. Current week’s figure was larger by Rs29,404.068 million over last year’s corresponding figure of Rs108,989.968 million.

According to the weekly statement of position of all scheduled banks for the week ended May 26, 2007, deposits and other accounts of the scheduled banks stood at Rs3,226.117 billion, higher by Rs20.47 billion over preceding week’s figure of Rs3,205.647 billion. Commercial banks deposits showed a rise of Rs20.21 billion over the week to Rs3,214.507 billion, against preceding week’s Rs3,194.297 billion, while of specialized banks it rose by Rs0.26 billion to Rs11.610 billion, over previous week’s Rs11.350 billion.

Borrowings by all scheduled banks decreased during the week over preceding week’s figure. It fell to Rs403.459 billion over preceding week’s figure of Rs416.737 billion, a fall of Rs13.278 billion. This was primarily due to a decline in the borrowings by commercial banks, which fell to Rs320.037 billion against previous week’s Rs333.374 billion, or by Rs13.337 billion, while borrowings by specialised banks stood at Rs83.423 billion, against preceding week’s figure of Rs83.363 billion, showing a rise of Rs0.06 billion.

Gross advances stood at Rs2,430.090 billion in the week under review, an increase of Rs18.494 billion over preceding week’s figure of Rs2,411.596 billion. Advances by commercial banks rose to Rs2,335.942 billion against earlier week’s figure of Rs2,317.546 billion, or by Rs18.396 billion, while of specialized banks it stood at Rs94.148 billion against preceding week’s Rs94.050 billion, showing a rise of Rs0.098 billion.

Investments of all scheduled banks increased in the week by Rs6.45 billion to Rs1,048.978 billion against preceding week’s figure of Rs1,042.526 billion. Commercial banks investment increased to Rs1,037.508 billion, from earlier week’s Rs1,031.314 billion, higher by Rs6.194 billion, while of specialized banks it stood at Rs11.470 billion against previous week’s Rs11.212 billion, higher by Rs0.258 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs12.353 billion during the week to stand at Rs337.580 billion against earlier week’s Rs325.227 billion. The figure for commercial banks stood at Rs335.292 billion against preceding week’s figure of Rs322.559 billion, a rise of Rs12.733 billion. For specialised banks there was a fall of Rs0.38 billion to Rs2.288 billion, against earlier week’s figure of Rs2.668 billion.

Total assets of scheduled banks stood at Rs4,329.351 billion, higher by Rs14.836 billion, over preceding week’s figure of Rs4,314.515 billion. Meanwhile, commercial banks assets stood at Rs4,213.816 billion, higher by Rs13.243 billion over previous week’s figure of Rs4,200.573 billion. Specialized banks assets rose by Rs1.593 billion to Rs115.535 billion against previous week’s Rs113.942 billion.