On June 23, the State Bank of Pakistan sold Rs5bn of T-bills under five-day repo contracts at 9.85 per cent to mop up liquidity from the money market.

On June 26, the SBP sold Rs12bn of Treasury Bills under two-day repo contracts at 9.85 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 14, 2008, both notes in circulation and those issued increased in the week. Notes in circulation stood at Rs1,072.105bn against earlier week’s figure of Rs1,068.590bn , a rise of Rs3.515 bn . When compared to the corresponding week a year ago when it was Rs913.331bn , the current week’s figure is higher by Rs158.774bn .

Total notes issued also increased in the current week over preceding week’s level. At Rs1,072.256bn it was higher by Rs3.491bn over the figure of Rs1,068.765bn recorded a week earlier. In the corresponding week last year it amounted to Rs913.495bn , which shows current week’s figure to be higher by Rs158.761bn over last year’s corresponding figure.

Approved foreign exchange declined in the week to Rs404.593bn or by Rs16.901bn over preceding week’s figure of Rs421.494bn . When compared to the corresponding week a year ago, when the figure was Rs657.273bn , the current week’s figure is lower by Rs252.68bn .

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs157.457bn over preceding week’s figure of Rs155.082bn , a rise of Rs2.375bn . Compared to last year’s corresponding figure of Rs138.559bn , the current week’s figure is larger by Rs18.898bn .

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 Rs49.777bn , similar to preceding week’s figure. The current week’s figure is smaller by Rs11.376bn over last year’s corresponding figure of Rs61.153bn .

There was an inflow of Rs39.901bn to the industrial sector during the week under review, a fall of Rs0.118bn against preceding week’s figure of Rs40.019bn . When compared to last year’s corresponding figure of Rs42.480bn , the current week’s figure is smaller by Rs2.579bn.

The export sector received Rs99.529bn against previous week’s figure of Rs99.854bn , smaller by Rs0.325bn . Current week’s figure was smaller by Rs37.224bn over last year’s corresponding figure of Rs136.753bn .

According to the weekly statement of position of all scheduled banks for the week ended June 14, 2008, deposits and other accounts of the scheduled banks stood at Rs3,698.782bn , smaller by Rs2.475bn over preceding week’s figure of Rs3,701.257bn . Commercial banks deposits showed a fall of Rs2.478bn over the week to Rs3,686.451bn , against preceding week’s Rs3,688.929bn . Specialized banks deposits stood at Rs12.330bn , against preceding week’s Rs12.327bn , a rise of Rs0.003bn .

Borrowings by all scheduled banks decreased during the week over preceding week’s figure. It fell to Rs417.888bn over preceding week’s figure of Rs421.289bn , a fall of Rs3.401bn . This was primarily due to a fall in the borrowings by commercial banks, which fell to Rs336.532bn against previous week’s Rs339.848bn , or by Rs3.316bn . Borrowings by specialised banks stood at Rs81.356bn , against preceding week’s figure of Rs81.441bn .

Gross advances stood at Rs2,921.621bn in the week under review, a fall of Rs0.726bn over preceding week’s figure of Rs2,922.347bn . Advances by commercial banks decreased to Rs2,823.832bn against earlier week’s figure of Rs2,824.919bn , or by Rs1.087bn . Advances of specialised banks stood at Rs97.789bn , larger by Rs0.362bn over earlier week’s figure of Rs97.427bn .

Investments of all scheduled banks decreased in the week by Rs2.211bn to Rs1,000.360bn against preceding week’s figure of Rs1,002.571bn . Commercial banks investment fell to Rs986.620bn , from earlier week’s Rs988.159bn , or by Rs1.539bn . Specialised banks investment stood at Rs13.740bn , against preceding week’s Rs14.412bn , smaller by Rs0.672bn .

Cash and balances with treasury banks of all scheduled banks decreased by Rs7.98bn during the week to stand at Rs400.912bn against earlier week’s Rs408.892bn . The figure for commercial banks stood at Rs397.855bn against preceding week’s figure of Rs405.895bn , a fall of Rs8.04bn , while of specialised banks it stood at Rs3.057bn over previous week’s Rs2.996bn .