One June 17, the State Bank of Pakistan conducted an open market operation and siphoned off Rs10 billion through one week repo of Treasury bills at 1.1 per cent. The OMO had generated bids worth Rs30.6 billion.

Last week the State Bank of Pakistan called the auction of the Pakistan Investment Bonds and set a target of Rs2 billion for three-year, Rs3 billion for five-year, and Rs25 billion for 10- year bonds. The auction would be held on June 28.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended May 31, 2003, both notes in circulation and those issued increased in the week under review. Notes in circulation stood at Rs539,546.028 million against earlier week’s figure of Rs528,730.004 million, showing a rise of Rs10,816.024 million. Compared to the corresponding week a year ago when it was Rs473,126.343 million, the current week’s figure is higher by Rs66,419.685 million.

Total notes issued also recorded a rise in the current week. At Rs539,707.803 million it was larger by Rs10,787.457 million over the figure of Rs528,920.346 million recorded a week earlier. In the corresponding week last year it amounted to Rs473,330.306 million, which shows current week’s figure to be higher by Rs66,377.497 million over last year’s figure.

Approved foreign exchange also increased in the week, rising to Rs464,364.088 million, or by Rs2,700.08 million over preceding week’s figure of Rs461,664.008 million. Compared to the corresponding week a year ago, when the figure was Rs217,177.445 million, the current week’s figure was higher by Rs247,186.643 million.

Balances held outside Pakistan in approved foreign exchange showed a further drop in the week under review. It stood at Rs92,667.882 million over preceding week’s figure of Rs94,372.861 million, showing a fall of Rs1,704.979 million. Compared to last year’s corresponding figure of Rs31,670.678 million, the current week’s figure is substantially higher by Rs60,997.204 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 Rs54,524.743 million against preceding week’s figure of Rs54,748.073 million, showing a decline of Rs223.33 million. The current week’s figure is higher by Rs194.967 million over last year’s corresponding figure of Rs54,329.776 million. There was an inflow of Rs2,870.254 million to the industrial sector during the week under review, depicting a decline of Rs14.025 million over previous week’s Rs2,884.279 million. When compared to last year’s corresponding figure of Rs3,463.199 million, the current week’s figure is lower by Rs592.945 million.

The export sector received Rs55,524.472 million against previous week’s figure of Rs55,550.594 million, showing a fall of Rs1,026.122 million. Current week’s figure was smaller by Rs4,088.769 million over last year’s corresponding figure of Rs58,613.241 million.

According to the weekly statement of position of scheduled banks for the week ended June 07, 2003, the sum of demand and time liabilities continued to rise in the week under review. The sum total stood at Rs1,702,439 million against preceding week’s Rs1,694,973 million, showing a rise of Rs7,466 million. As compared to the total deposits of Rs1,426,775 million in the corresponding period last year, current week’s deposits were higher by Rs275,664 million.

During the week under review, both demand and time deposits rose. Demand deposits rose to Rs791,868 million, showing a rise of Rs4,119 million over previous week’s Rs787,749 million. It was also higher against last year’s corresponding figure of Rs630,286 million by Rs161,582 million.

In the current week, time deposits were higher both over the preceding week and against the corresponding week last year. At Rs910,224 million, it was larger by Rs3,347 million over previous week’s Rs907,224 million and by Rs114,082 million, over last year’s corresponding figure of Rs796,489 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities declined in the current week. At Rs134,386 million it was smaller by Rs1,819 million over preceding week’s Rs136,205 million. Compared to last year’s corresponding figure of Rs135,014 million, the current week’s figure is higher by Rs628 million.

Scheduled banks borrowings from banks abroad stood at Rs18,232 million in the current week, as against Rs15,210 million a week ago, showing a rise of Rs3,022 million. It was also larger by Rs5,178 million over last year’s corresponding figure of Rs13,054 million.

Money at call and short notice in Pakistan increased in the week under review. It stood at Rs30,805 million, a rise of Rs2,914 million over preceding week’s Rs27,891 million. When compared to last year’s corresponding figure of Rs40,886 million, the current figure is lower by Rs10,081 million.

Scheduled banks advances including bills purchased and discounted, increased further in the week under review. At Rs1,042,739 million it was larger by Rs7,153 million over preceding week’s Rs1,035,586 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs950,830 million, the current week’s advances are higher by Rs91,909 million.