On September 16, the State Bank of Pakistan mopped up Rs8.4 billion from an excessively liquid money market through repo of the Treasury bills for up to one-month.

The move that came after the scrapping of the six-month T-bills auction on September 15, shows the central bank is making good use of its open market operation as a tool for interest rate management.

On September 15, the central bank scrapped all bids worth Rs21.1 billion for six-month Treasury bills, supporting its earlier signals that it wants to keep the T-bills rates stable at the current levels.

According to the weekly statement of position of scheduled banks for the week ended October 04, 2003, the sum of demand and time liabilities declined in the week under review after having risen during the past few weeks. The sum total stood at Rs1,799,623 million against preceding week’s Rs1,806,991 million, showing a fall of Rs7,368 million. As compared to the total deposits of Rs1,535,070 million in the corresponding period last year, current week’s deposits were higher by Rs264,553 million.

During the week under review both demand and time deposits declined. Demand deposits decreased to Rs871,445 million, a fall of Rs6,171 million over previous week’s Rs877,616 million. It was however, higher against last year’s corresponding figure of Rs666,283 million by Rs205,162 million.

In the current week, time deposits declined over the preceding week’s figure. At Rs928,178 million, it was smaller by Rs1,197 million over previous week’s Rs929,375 million but higher by Rs59,391 million, over last year’s corresponding figure of Rs868,787 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities increased in the current week. At Rs139,774 million it was larger by Rs147 million over preceding week’s Rs139,627 million. Compared to last year’s corresponding figure of Rs127,446 million, the current week’s figure is higher by Rs12,328 million.

Scheduled banks borrowings from banks abroad stood at Rs18,867 million in the current week, as against Rs19,695 million a week ago, showing a fall of Rs828 million. It was however, larger by Rs1,809 million over last year’s corresponding figure of Rs17,058 million.

Money at call and short notice in Pakistan increased in the week under review over previous week’s figure. It stood at Rs21,332 million, a rise of Rs5 million over preceding week’s Rs21,327 million. When compared to last year’s corresponding figure of Rs38,419 million, the current figure is lower by Rs17,087 million.

Scheduled banks’ advances including bills purchased and discounted increased in the week under review.

At Rs1,066,313 million it was higher by Rs14,969 million over preceding week’s Rs1,051,344 million.

Compared to the corresponding figure a year ago, when advances were to the tune of Rs937,577 million, the current week’s advances are higher by Rs128,736 million.

Scheduled banks investment in central government securities, the Treasury bills and other approved securities decreased in the current week when compared to preceding week’s level. Such investments amounted to Rs794,461 million, a fall of Rs9,654 million over previous week’s Rs804,115 million. Compared to last year’s corresponding figure of Rs587,022 million, the current week’s investment is higher by Rs207,439 million.

Total assets of scheduled banks decreased in the week under review.

These stood at Rs2,571,640 million against previous week’s Rs2,576,309 million, a fall of Rs4,669 million.

Compared to last year’s corresponding figure of Rs2,437,872 million it shows a rise of Rs133,768 million.