On July 2, the State Bank of Pakistan sold Treasury Bills worth Rs76.8bn. The SBP sold only Rs1.989bn worth of 12 month T-bills, no offers were received for 6 month T-bills, while the balance was made up of 3 month T-bills.

The State Bank of Pakistan sold Rs12bn of Treasury bills on July 4, under six-day repo contracts at 9.84 per cent to mop up liquidity from the money market.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 21, 2008, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs1,064.541bn against earlier week’s figure of Rs1,072.105bn, a fall of Rs7.564bn. When compared to the corresponding week a year ago when it was Rs904.181bn, the current week’s figure is higher by Rs160.36bn.

Total notes issued also declined in the current week over preceding week’s level. At Rs1,064.744bn it was smaller by Rs7.512bn over the figure of Rs1,072.256bn recorded a week earlier. In the corresponding week last year it amounted to Rs904.384bn, which shows current week’s figure to be higher by Rs160.36bn over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs443.323bn or by Rs38.73bn over preceding week’s figure of Rs404.593bn. When compared to the corresponding week a year ago, when the figure was Rs686.246bn, the current week’s figure is lower by Rs242.923bn.

Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs150.629bn over preceding week’s figure of Rs157.457bn, a fall of Rs6.828bn. Compared to last year’s corresponding figure of Rs119.731bn, the current week’s figure is larger by Rs30.898bn.

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 Rs39.729bn to the industrial sector during the week under review, a fall of Rs0.172bn against preceding week’s figure of Rs39.901bn. When compared to last year’s corresponding figure of Rs42.529bn, the current week’s figure is smaller by Rs2.8bn.

The export sector received Rs100.057bn against previous week’s figure of Rs99.529bn, smaller by Rs0.528bn. Current week’s figure was smaller by Rs36.793bn over last year’s corresponding figure of Rs136.850bn.

According to the weekly statement of position of all scheduled banks for the week ended June 21, 2008, deposits and other accounts of the scheduled banks stood at Rs3,705.043bn, larger by Rs6.261bn over preceding week’s figure of Rs3,698.782bn. Commercial banks deposits showed a rise of Rs5.91bn over the week to Rs3,692.361bn, against preceding week’s Rs3,686.451bn. Specialized banks deposits stood at Rs12.682bn, against preceding week’s Rs12.330bn, a rise of Rs0.352bn.

Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs426.452bn over preceding week’s figure of Rs417.888bn, a rise of Rs8.564bn. This was primarily due to a rise in the borrowings by commercial banks, which rise to Rs344.986bn against previous week’s Rs336.532bn, or by Rs8.454bn. Borrowings by specialised banks stood at Rs81.466bn, against preceding week’s figure of Rs81.356bn.

Gross advances stood at Rs2,935.054bn in the week under review, a rise of Rs13.433bn over preceding week’s figure of Rs2,921.621bn. Advances by commercial banks increased to Rs2,836.879bn against earlier week’s figure of Rs2,823.832bn, or by Rs13.047bn. Advances of specialised banks stood at Rs98.175bn, larger by Rs0.386bn over earlier week’s figure of Rs97.789bn.

Investments of all scheduled banks decreased in the week by Rs4.371bn to Rs995.989bn against preceding week’s figure of Rs1,000.360bn. Commercial banks investment fell to Rs982.074bn, from earlier week’s Rs986.620bn, or by Rs4.546bn. Specialised banks investment stood at Rs13.915bn, against preceding week’s Rs13.740bn, higher by Rs0.175bn.