THE State Bank of Pakistan (SBP) sold Rs8,089.55 million worth of six and 12 month T-bills on January 9 in open auction. It sold out Rs3,513.93 million of 6 month T-bill and Rs4,575.62 million of 12-month bills.

All bids of three months bills were rejected by the SBP. The SBP has set a auction target of Rs9,396 million, against which it received bids worth Rs24,189.21 million. The weighted average yield on 6-month bills is 7.7659 and on 12-month bills is 8.2044 per cent. The maturity date for 6 months is July and for 12 months is January 2003.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended December 29, 2001, both notes in circulation and those issued continued to decline in the week, as against a rise witnessed earlier. Notes in circulation stood at Rs457,545.727 million against preceding week’s Rs468,966.531 million, showing a fall of Rs11,420.804 million. When compared to the corresponding week a year ago when it was Rs428,191.476 million, the current week’s figure is higher by Rs29,354.251.

Total notes issued also showed a decline in the current week. At Rs457,717.272 million it was smaller by Rs11,360.258 million over a week earlier figure of Rs469,077.530 million. In the corresponding week last year it amounted to Rs428,315331 million, which shows an increase of Rs29,401.941 million over the year.

Approved foreign exchange showed a further fall in the week under review. It stood at Rs128,576.940 million, showing a decline of Rs9,634.733 million over previous week’s Rs138,211.673 million. When compared to last year’s corresponding figure of Rs57,566.990 million, the current week’s figure is substantially higher by Rs71,099.95 million.

Balances held outside Pakistan in approved foreign exchange, continued to rise in the week under review. It stood at Rs90,552.430 million, over preceding week’s figure of Rs70,194.138 million, showing rise of Rs20,358.292 million. Compared to last year’s corresponding figure of Rs24,946.246 million, the current week’s figure is larger by Rs65,606.184 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 Rs53,777.369 million, against preceding week’s Rs53,867.369 million, showing a decline of Rs90 million. The current week’s figure is smaller by Rs1,520.463 million over last year’s corresponding figure of Rs55,297.832 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities recorded a fall in the week under review. Such investment amounted to Rs313,431 million, a decrease of Rs892 million over previous week’s Rs314,323 million.

Compared to last year’s corresponding figure of Rs287,170 million, he current week’s investment is higher by Rs26,261 million.

Total assets of scheduled banks rose in the week under review. These rose to Rs2,136,180 million against previous week’s Rs2,116,785 million, showing an increase of Rs19,395 million. Compared to last year’s corresponding figure of Rs1,890,448 million it shows a rise of Rs245,732 million.