On December 4, the State Bank of Pakistan at an open market operation, pumped Rs16.45 billion into the banking system — Rs5 billion for one week and Rs11.45 billion for two weeks. The funds were injected through reverse repo of the Treasury bills at 2 per cent.

This was the sixth injection of funds the central bank has made since the start of Ramazan. On December 5, the State Bank of Pakistan sold Rs13.675 billion Pakistan Investment Bonds as the third instalment of Rs50 billion jumbo issue. Total realized value of sold bonds comes to Rs15.14 billion.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended November 29, 2003, both notes in circulation and those issued increased further in the week under review. Notes in circulation stood at Rs626,337.344 million against earlier week’s figure of Rs613,921.287 million, showing a rise of Rs12,416.057 million. When compared to the corresponding week a year ago when it was Rs513,969.107 million, the current week’s figure is higher by Rs112,368.237 million.

Total notes issued also recorded a rise in the current week. At Rs626,487.512 million it was larger by Rs12,292.331 million over the figure of Rs614,195.181 million recorded a week earlier. In the corresponding week last year it amounted to Rs514,128.515 million, which shows current week’s figure to be higher by Rs112,358.997 million over last year’s figure.

Approved foreign exchange increased in the week, rising to Rs488,437.493 million or by Rs69 million over preceding week’s figure of Rs488,368.493 million. When compared to the corresponding week a year ago, when the figure was Rs382,971.641 million, the current week’s figure was higher by Rs105,465.852 million.

Balances held outside Pakistan in approved foreign exchange showed an increase in the week under review. It stood at Rs118,559.221 million over preceding week’s figure of Rs120,073.711 million, showing a rise of Rs1,514.49 million. Compared to last year’s corresponding figure of Rs42,460.970 million, the current week’s figure is substantially higher by Rs76,098.251 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 Rs55,447.895 million similar to preceding week’s figure. The current week’s figure is larger by Rs1,123.707 million over last year’s corresponding figure of Rs54,324.188 million.

There was an inflow of Rs2,684.857 million to the industrial sector during the week under review, depicting a decline of Rs2.401 million over previous week’s Rs2,687.258 million. When compared to last year’s corresponding figure of Rs3,238.946 million, the current week’s figure is lower by Rs554.089 million.

The export sector received Rs72,894.399 million against previous week’s figure of Rs72,818.607 million, showing a rise of Rs75.792 million. Current week’s figure was larger by Rs25,784.589 million over last year’s corresponding figure of Rs47,109.810 million.

According to the weekly statement of position of scheduled banks for the week ended November 22, 2003, the sum of demand and time liabilities increased further in the week under review. The sum total stood at Rs1,838,928 million against preceding week’s Rs1,825,011 million, showing a rise of Rs13,917 million. As compared to the total deposits of Rs1,567,238 million in the corresponding period last year, current week’s deposits were higher by Rs271,690 million.

During the week under review, both demand and time deposits increased. Demand deposits rose to Rs921,754 million, a rise of Rs9,632 million over previous week’s Rs912,122 million. It was also higher against last year’s corresponding figure of Rs702,769 million by Rs218,985 million.

In the current week, time deposits rose over preceding week’s figure. At Rs917,174 million, it was larger by Rs4,285 million over previous week’s Rs912,889 million and higher Rs52,705 million, over last year’s corresponding figure of Rs864,469 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities increased in the current week. At Rs149,345 million it was larger by Rs2,358 million over preceding week’s Rs146,987 million. Compared to last year’s corresponding figure of Rs133,183 million, the current week’s figure is higher by Rs16,162 million.

Scheduled banks borrowings from banks abroad stood at Rs18,637 million in the current week, as against Rs19,033 million a week ago, showing a fall of Rs396 million. It was larger by Rs3,027 million over last year’s corresponding figure of Rs15,610 million.