ON November 8, the State Bank of Pakistan picked up Rs44.883 billion through the auction of Treasury Bills. The cut-off yield was raised to 8.19 per cent from 8.14 per cent for six-month bills.

The SBP raised Rs27 billion from the auction of 12-month; Rs12.749 billion from three-month; and Rs4.598 billion from six-month T-bills.

According to the Statement of Affairs of the State Bank of Pakistan for the week ended October 28, 2006, both notes in circulation and issued further increased in the week. Notes in circulation stood at Rs880,553.272 million against earlier week’s figure of Rs868,715.675 million, a rise of Rs11,837.597 million. When compared to the corresponding week a year ago when it was Rs766,179.646 million, the current week’s figure is higher by Rs114,373.626 million.

Total notes issued also rose in the current week over preceding week’s level. At Rs880,724.209 million it was higher by Rs11,896.291 million over the figure of Rs868,827.918 million recorded a week earlier. In the corresponding week last year it amounted to Rs766,420.008 million, which shows current week’s figure to be higher by Rs114,304.201 million over last year’s corresponding figure.

Approved foreign exchange decreased in the week to Rs512,490.841 million or by Rs11,608.597 million over preceding week’s figure of Rs524,099.438 million. When compared to the corresponding week a year ago, when the figure was Rs430,701.653 million, the current week’s figure is higher by Rs81,789.188 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs138,758.471 million over preceding week’s figure of Rs129,967.842 million, a rise of Rs8,790.629 million. Compared to last year’s corresponding figure of Rs149,839.057 million, the current week’s figure is larger by Rs12,080.586 million.

Loans and advances of scheduled banks to the three sectors – agricultural, industrial and export showed a mixed trend in the week under review. The agricultural sector received Rs62,682.785 million, similar to preceding week’s figure. The current week’s figure is larger by Rs1,968.723 million over last year’s corresponding figure of Rs60,714.062 million.

There was an inflow of Rs13,283.800 million to the industrial sector during the week under review, a rise of Rs348.296 million against preceding week’s figure of Rs12,935.504 million. When compared to last year’s corresponding figure of Rs1,847.047 million, the current week’s figure is higher by Rs11,436.753 million.

The export sector received Rs118,855.947 million against previous week’s figure of Rs118,119.035 million, a rise of Rs736.912 million. Current week’s figure was larger by Rs16,429.578 million over last year’s corresponding figure of Rs102,426.369 million.

According to the weekly statement of position of all scheduled banks for the week ended October 28, 2006, deposits and other accounts of the scheduled banks stood at Rs2,823.123 billion, higher by Rs14.683 billion over preceding week’s figure of Rs2,808.440 billon. Commercial banks deposits showed an increase of Rs14.602 billion over the week to Rs2,811.225 billion, against preceding week’s Rs2,796.623 billion, while of specialized banks it rose by Rs0.08 billion to Rs11.898 billion, over previous week’s Rs11.818 billion.

Borrowings by all scheduled banks declined further during the week over preceding week’s figure. It fell to Rs363.350 billion over preceding week’s figure of Rs378.987 billion, a fall of Rs15.637 billion. This was primarily due to a decrease in the borrowings by commercial banks, which declined to Rs275.358 billion against previous week’s Rs290.995 billion, or by Rs15.637 billion, while borrowings by specialised banks stood at Rs87.992 billion, similar to preceding week’s figure.

Gross advances stood at Rs2,252.749 billion in the week under review, a rise of Rs1.203 billion over preceding week’s figure of Rs2,251.546 billion. Advances by commercial banks rose to Rs2,154.948 billion against earlier week’s figure of Rs2,153.571 billion, higher by Rs1.377 billion, while of specialized banks it stood at Rs97.801 billion.

Investments of all scheduled banks declined in the week by Rs1.358 billion to Rs790.558 billion against preceding week’s figure of Rs791.916 billion. Commercial banks investment decreased to Rs780.114 billion, from earlier week’s Rs781.457 billion, smaller by Rs1.343 billion, while of specialized banks it stood at Rs10.443 billion against previous week’s Rs10.459 billion, smaller by Rs0.016 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs12.213 billion during the week to stand at Rs327.245 billion against earlier week’s Rs315.032 billion. The figure for commercial banks also rose to Rs325.140 billion against preceding week’s figure of Rs312.759 billion, a rise of Rs12.381 billion. For specialized banks there was a decline of Rs0.167 billion to Rs2.106 billion, against earlier week’s figure of Rs2.273 billion.

Total assets of scheduled banks stood at Rs3,793.455 billion, lower by Rs9.443 billion, over preceding week’s figure of Rs3,802.898 billion. Meanwhile, commercial banks assets stood at Rs3,677.640 billion, smaller by Rs9.311 billion over previous week’s figure of Rs3,686.951 billion. Specialized banks assets fell by Rs0.133 billion to Rs115.814 billion against previous week’s Rs115.947 billion.