On November 20, the State Bank of Pakistan increased the cut off yield on treasury bills. The benchmark six-month T-bills rate was raised by 1.35 per cent to 14.01 per cent reflecting the recent increase in the discount rate. The discount rate was raised a week earlier by 200 basis points to 15 per cent.

The SBP sold T-Bills worth Rs103bn. The banks bought three-month T-bills for Rs101.598bn and Rs1.869bn of 6 month T-bills. All bids for 12 month bills were rejected.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended November 8, 2008, both notes in circulation and those issued increased in the week. Notes in circulation stood at Rs1,193.149bn against earlier week’s figure of Rs1,173.427bn, a rise of Rs19.722bn. When compared to the corresponding week a year ago when it was Rs992.487bn, the current week’s figure is higher by Rs200.773bn.

Total notes issued also increased in the current week over preceding week’s level. At Rs1,193.330bn it was larger by Rs19.697bn over the figure of Rs1,173.633bn recorded a week earlier. In the corresponding week last year it amounted to Rs992.487bn, which shows current week’s figure to be higher by Rs200.843bn over last year’s corresponding figure.

Approved foreign exchange decreased in the week to Rs160.807bn or by Rs22.479bn over preceding week’s figure of Rs183.286bn. When compared to the corresponding week a year ago, when the figure was Rs744.577bn, the current week’s figure is lower by Rs583.770bn.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs166.365bn over preceding week’s figure of Rs147.555bn, a rise of Rs18.810bn. Compared to last year’s corresponding figure of Rs152.624bn, the current week’s figure is larger by Rs13.741bn.

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 Rs57.777bn, similar to preceding week’s figure. The current week’s figure is smaller by Rs0.078bn over last year’s corresponding figure of Rs57.855bn.

There was an inflow of Rs36.336bn to the industrial sector during the week under review, a fall of Rs0.035bn against preceding week’s figure of Rs36.371bn. When compared to last year’s corresponding figure of Rs39.846bn, the current week’s figure is smaller by Rs3.510bn.

The export sector received Rs105.852bn against previous week’s figure of Rs104.365bn, larger by Rs1.487bn. Current week’s figure was smaller by Rs5.475bn over last year’s corresponding figure of Rs100.377bn.

According to the weekly statement of position of all scheduled banks for the week ended November 15, 2008, deposits and other accounts of the scheduled banks declined in the current week and stood at Rs3,682.250bn, smaller by Rs8.719bn over preceding week’s figure of Rs3,690.969bn. Compared with last year’s corresponding figure of Rs3,471.545bn, the current week’s figure is larger by Rs210.705bn. During the current week commercial banks deposits showed a decrease of Rs8.554bn over the week to Rs3,671.149bn, against preceding week’s Rs3,679.703bn. Specialized banks deposits stood at Rs11.101bn, against preceding week’s Rs11.266bn, a fall of Rs0.165bn.

Borrowings by all scheduled banks declined in the week. It fell to Rs407.431bn over preceding week’s figure of Rs414.169bn, a fall of Rs6.738bn. Compared to last year’s corresponding figure of Rs446.640bn, current week’s figure is lower by Rs39.209bn. Current week’s decrease was due to a fall in the borrowings by commercial banks, which fell to Rs326.331bn against previous week’s Rs333.135bn, or by Rs6.804bn. Borrowings by specialized banks stood at Rs81.099bn, against preceding week’s figure of Rs81.034bn, lower by Rs0.065bn.

Gross advances stood at Rs3,111.840bn in the week under review, a rise of Rs4.096bn over preceding week’s figure of Rs3,107.744bn. Compared to last year’s corresponding figure of Rs2,524.602bn, current week’s figure is larger by Rs587.238bn. In the week under review, advances by commercial banks fell to Rs3,012.172bn against earlier week’s figure of Rs3,008.157bn, or by Rs4.015bn. Advances of specialized banks stood at Rs99.668bn, smaller by Rs0.081bn over earlier week’s figure of Rs99.587bn.

Investments of all scheduled banks decreased in the week by Rs2.617bn to Rs865.682bn against preceding week’s figure of Rs868.299bn. Compared to last year’s corresponding figure of Rs1,248.100bn, current week’s figure is smaller by Rs379.801bn. In the current week, commercial banks investment declined to Rs854.994bn, from earlier week’s Rs857.097bn, or by Rs2.103bn. Specialized banks investment stood at Rs10.688bn, against preceding week’s Rs11.202bn, higher by Rs0.514bn.

Cash and balances with treasury banks of all scheduled banks rose by Rs4.620bn during the week to stand at Rs327.933bn against earlier week’s Rs323.313bn. Current week’s figure was smaller by Rs16.556bn compared to last year’s corresponding figure of Rs344.489bn. In the current week, the figure for commercial banks stood at Rs325.720bn against preceding week’s figure of Rs320.577bn, a rise of Rs5.143bn, while of specialized banks it stood at Rs2.213bn over previous week’s Rs2.736bn.

Total assets of scheduled banks stood at Rs4,983.439bn, lower by Rs16.450bn, over preceding week’s figure of Rs4,999.889bn. Current week’s figure was higher by Rs267.442bn compared to last year’s corresponding figure of Rs4,715.997bn.