April 07, 2008	Monday	Rabi-ul-Awwal 29, 1429

On April 2, the State Bank of Pakistan sold Rs15.5 billion worth of T-bills at 8.9 per cent under a three-day repo contracts to mop up funds from the money market.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended March 22, 2008, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs1,056.091 billion against earlier week’s figure of Rs1,063.167 billion, a fall of Rs7.076 billion. When compared to the corresponding week a year ago when it was Rs886.480 billion, the current week’s figure is higher by Rs169.611 billion.

Total notes issued also decreased in the current week over preceding week’s level. At Rs1,056.247 billion it was smaller by Rs7.111 billion over the figure of Rs1,063.358 billion recorded a week earlier. In the corresponding week last year it amounted to Rs886.658 billion, which shows current week’s figure to be higher by Rs169.589 billion over last year’s corresponding figure.

Approved foreign exchange decreased in the week to Rs568.646 billion or by Rs24.724 billion over preceding week’s figure of Rs593.370 billion. When compared to the corresponding week a year ago, when the figure was Rs592.591 billion, the current week’s figure is lower by Rs23.945 billion.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs155.652 billion over preceding week’s figure of Rs152.643 billion, a rise of Rs3.009 billion. Compared to last year’s corresponding figure of Rs124.896 billion, the current week’s figure is larger by Rs30.756 billion.

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 Rs49.777 billion, similar to preceding week’s figure. The current week’s figure is smaller by Rs10.406 billion over last year’s corresponding figure of Rs60.183 billion.

There was an inflow of Rs40.719 billion to the industrial sector during the week under review, a fall of Rs0.183 billion against preceding week’s figure of Rs40.902 billion. When compared to last year’s corresponding figure of Rs41.950 billion, the current week’s figure is smaller by Rs1.231 billion.

The export sector received Rs93.648 billion against previous week’s figure of Rs90.548 billion, higher by Rs3.1 billion. Current week’s figure was smaller by Rs41.859 billion over last year’s corresponding figure of Rs135.507 billion.

According to the weekly statement of position of all scheduled banks for the week ended March 22, 2008, deposits and other accounts of the scheduled banks stood at Rs3,603.792 billion, smaller by Rs11.547 billion over preceding week’s figure of Rs3,615.339 billion. Commercial banks deposits showed a decrease of Rs11.504 billion over the week to Rs3,591.031 billion, against preceding week’s Rs3,602.535 billion. Specialized banks deposits stood at Rs12.761 billion, against preceding week’s Rs12.804 billion, a fall of Rs0.043 billion.

Borrowings by all scheduled banks decreased during the week over preceding week’s figure. It rose to Rs414.624 billion over preceding week’s figure of Rs423.157 billion, a fall of Rs8.533 billion. This was primarily due to a fall in the borrowings by commercial banks, which fell to Rs333.598 billion against previous week’s Rs342.108 billion, or by Rs8.51 billion. Borrowings by specialized banks stood at Rs81.025 billion, against preceding week’s figure of Rs81.050 billion.

Gross advances stood at Rs2,781.446 billion in the week under review, a decrease of Rs0.804 billion over preceding week’s figure of Rs2,782.250 billion. Advances by commercial banks fell to Rs2,684.495 billion against earlier week’s figure of Rs2,685.460 billion, or by Rs0.965 billion. Advances of specialized banks stood at Rs96.951 billion, higher by Rs0.16 billion over earlier week’s figure of Rs96.791 billion.

Investments of all scheduled banks decreased in the week by Rs1.189 billion to Rs1,151.373 billion against preceding week’s figure of Rs1,152.562 billion. Commercial banks investment fell to Rs1,138.025 billion, from earlier week’s Rs1,138.725 billion, or by Rs0.7 billion. Specialized banks investment stood at Rs13.348 billion, against preceding week’s Rs13.838 billion, smaller by Rs0.49 billion.

Total assets of scheduled banks stood at Rs4,844.286 billion, lower by Rs25.102 billion, over preceding week’s figure of Rs4,869.388 billion.