AT the auction on February 28, the State Bank of Pakistan raised Rs37.515 billion out of total bids worth Rs46.960 billion. Out of the total bids accepted, the SBP picked up Rs37.034 billion for one year. The 6-month T-bills attracted only Rs383 million and 3-month bills received just Rs98 million.

The cut-off yield on the benchmark 6-month T-bills were at 8.81 per cent. Large participation of banks for investment in 12-month T-bills reflects the market perception about interest rate.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended July 2February 17, 2007, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs890,185.621 million against earlier week’s figure of Rs894,059.770 million, a fall of Rs3,874.149 million. When compared to the corresponding week a year ago when it was Rs801,729.875 million, the current week’s figure is higher by Rs88,455.746 million.

Total notes issued also declined in the current week over preceding week’s level. At Rs890,386.351 million it was smaller by Rs3,779.672 million over the figure of Rs894,166.023 million recorded a week earlier. In the corresponding week last year it amounted to Rs801,906.286 million, which shows current week’s figure to be higher by Rs88,480.065 million over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs560,385.594 million or by Rs636.315 million over preceding week’s figure of Rs559,749.279 million. When compared to the corresponding week a year ago, when the figure was Rs426,398.593 million, the current week’s figure is higher by Rs133,987.001 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs134,791.203 million over preceding week’s figure of Rs130,817.213 million, a rise of Rs3,973.99 million. Compared to last year’s corresponding figure of Rs143,084.127 million, the current week’s figure is smaller by Rs8,292.924 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 Rs59,183.528 million, similar to preceding week’s figure. The current week’s figure is smaller by Rs1,524.616 million over last year’s corresponding figure of Rs60,708.144 million.

There was an inflow of Rs41,849.180 million to the industrial sector during the week under review, a rise of Rs101.627 million against preceding week’s figure of Rs41,747.553 million. When compared to last year’s corresponding figure of Rs4,260.317 million, the current week’s figure is higher by Rs37,588.863 million.

The export sector received Rs135,872.146 million against previous week’s figure of Rs134,226.396 million, a rise of Rs1,645.75 million. Current week’s figure was larger by Rs30,601.881 million over last year’s corresponding figure of Rs105,270.265 million.

According to the weekly statement of position of all scheduled banks for the week ended February 17, 2007, deposits and other accounts of the scheduled banks stood at Rs3,008.860 billion, higher by Rs14.532 billion over preceding week’s figure of Rs2,994.328 billion. Commercial banks deposits showed a rise of Rs15.221 billion over the week to Rs2,997.329 billion, against preceding week’s Rs2,982.108 billion, while of specialized banks it declined by Rs0.688 billion to Rs11.531 billion, over previous week’s Rs12.219 billion.

Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs404.264 billion over preceding week’s figure of Rs397.474 billion, a rise of Rs6.79 billion. This was primarily due to an increase in the borrowings by commercial banks, which rose to Rs319.958 billion against previous week’s Rs313.263 billion, or by Rs6.695 billion, while borrowings by specialised banks stood at Rs84.306 billion against preceding week’s figure of Rs84.211 billion, a rise of Rs0.095 billion.

Gross advances stood at Rs2,367.571 billion in the week under review, a rise of Rs1.533 billion over preceding week’s figure of Rs2,366.038 billion. Advances by commercial banks increased to Rs2,271.736 billion against earlier week’s figure of Rs2,270.157 billion, higher by Rs1.579 billion, while of specialized banks it stood at Rs95.835 billion against preceding week’s Rs95.881 billion, showing a decline of Rs0.046 billion.

Investments of all scheduled banks increased in the week by Rs36.993 billion to Rs869.731 billion against preceding week’s figure of Rs832.738 billion. Commercial banks investment rose to Rs858.618 billion, from earlier week’s Rs821.903 billion, higher by Rs36.715 billion, while of specialized banks it stood at Rs11.113 billion against previous week’s Rs10.835 billion, higher by Rs0.278 billion.

Cash and balances with treasury banks of all scheduled banks decreased by Rs12.103 billion during the week to stand at Rs311.258 billion against earlier week’s Rs323.361 billion.