THE stock of government debt raised through treasury bills has risen to Rs403 billion by March 2003 from Rs208 billion at end March 2002. The government borrowed more, through treasury bills, from banks at cheap rates to retire more expensive SBP debt. The share of borrowings through T-bills has shot up to 23 per cent from 12 per cent a year ago.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended May 10, 2003, both notes in circulation and those issued maintained the upward trend in the week under review. Notes in circulation stood at Rs538,854.781 million against earlier week’s figure of Rs523,561.975 million, showing a rise of Rs15,292.806 million. When compared to the corresponding week a year ago when it was Rs464,809.985 million, the current week’s figure is higher by Rs74,044.796 million.

Total notes issued also recorded a rise in the current week. At Rs539,027.448 million it was larger by Rs15,465.473 million over the figure of Rs523,561.975 million recorded a week earlier. In the corresponding week last year it amounted to Rs464,942.039 million, which shows current week’s figure to be higher by Rs74,085.409 million over last year’s figure. Approved foreign exchange showed a further increase in the week rising to Rs465,708.543 million, larger by Rs5,351.352 million over preceding week’s figure of Rs460,357.191 million. When compared to the corresponding week a year ago, when the figure was Rs213,792.264 million, the current week’s figure was higher by Rs251,916.279 million.

Balances held outside Pakistan in approved foreign exchange showed a further decline in the week under review. It stood at Rs88,358.047 million over preceding week’s figure of Rs92,199.102 million, showing a fall of Rs3,841.055 million. Compared to last year’s corresponding figure of Rs24,016.402 million, the current week’s figure is higher by Rs64,341.645 million.

Loans and advances of scheduled banks to the three sectors— agricultural, industrial and export— showed a mixed picture in the week under review. The agricultural sector received Rs54,264.073 million against preceding week’s figure of Rs54,292.073 million showing a decline of Rs28 million. The current week’s figure is higher by Rs408.76 million over last year’s corresponding figure of Rs53,855.313 million.

There was an inflow of Rs2,918.956 million to the industrial sector during the week under review, depicting a decline of Rs7.012 million over previous week’s Rs2,925.968 million. When compared to last year’s corresponding figure of Rs3,614.892 million, the current week’s figure is lower by Rs695.936 million.

The export sector received Rs50,126.563 million against previous week’s figure of Rs46,320.498 million, showing a rise of Rs3,806.065 million. Current week’s figure was smaller by Rs7,111.443 million over last year’s corresponding figure of Rs57,238.006 million.

According to the weekly statement of position of scheduled banks for the week ended May 10, 2003, the sum of demand and time liabilities continued to rise in the week under review. The sum total stood at Rs1,663,471 million against preceding week’s Rs1,653,600 million, showing a rise of Rs9,871 million. As compared to the total deposits of Rs1,416,637 million in the corresponding period last year, current week’s deposits were higher by Rs246,834 million.

During the week under review, both demand and time deposits rose. Demand deposits rose to Rs763,013 million, showing a rise of Rs3,622 million over previous week’s Rs759,391 million. It was also higher against last year’s corresponding figure of Rs627,166 million by Rs135,847 million.

In the current week, time deposits were higher both over preceding week and against the corresponding week last year. At Rs900,457 million, it was larger by Rs6,248 million over previous week’s Rs894,209 million and by Rs110,986 million, over last year’s corresponding figure of Rs789,471 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities continued to increase in the current week. At Rs130,369 million it was larger by Rs3,726 million over preceding week’s Rs126,643 million. Compared to last year’s corresponding figure of Rs132,758 million, the current week’s figure is lower by Rs2,389 million.

Scheduled banks borrowings from banks abroad stood at Rs15,911 million in the current week, as against Rs15,698 million a week ago, showing a rise of Rs213 million. It was also larger by Rs2,660 million over last year’s corresponding figure of Rs13,251 million. Money at call and short notice in Pakistan declined in the week under review. It stood at Rs25,236 million, a fall of Rs5,515 million over preceding week’s Rs30,751 million. When compared to last year’s corresponding figure of Rs36,109 million, the current figure is lower by Rs10,873 million.