On June 22, the State Bank of Pakistan sold treasury bills worth of Rs12 billion to mop up liquidity from the market. It sold Rs9 billion T-bills for 13 days and Rs3 billion outright sale was made for 42 days.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 9, 2007, both notes in circulation and those issued increased in the week. Notes in circulation stood at Rs916,360.115 million against earlier week’s Rs901,120.082 million, a rise of Rs15,240.033 million. When compared to the corresponding week a year ago when it was Rs806,802.526 million, the current week’s figure is higher by Rs109,557.589 million.

Total notes issued also rose in the current week over preceding week’s level. At Rs916,585.696 million it was larger by Rs15,273.676 million over the figure of Rs901,312.020 million recorded a week earlier. In the corresponding week last year it amounted to Rs806,996.058 million, which shows current week’s figure to be higher by Rs109,589.638 million over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs659,717.764 million or by Rs30,677.707 million over preceding week’s figure of Rs629,040.057 million. When compared to the corresponding week a year ago, when the figure was Rs534,800.275 million, the current week’s figure is higher by Rs124,917.489 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs138,863.678 million over preceding week’s figure of Rs105,337.013 million, a rise of Rs33,526.665 million. Compared to last year’s corresponding figure of Rs129,109.553 million, the current week’s figure is larger by Rs9,754.125 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 Rs60,183.528 million against preceding week’s Rs60,183.528 million, showing a rise of Rs970 million. The current week’s figure is smaller by Rs490.454 million over last year’s corresponding figure of Rs61,643.982 million.

There was an inflow of Rs42,305.677 million to the industrial sector during the week under review, a rise of Rs92.951 million against preceding week’s figure of Rs42,212.726 million. When compared to last year’s corresponding figure of Rs6,657.626 million, the current week’s is higher by Rs35,648.051 million.

The export sector received Rs136,980.950 million against previous week’s Rs136,895.788 million, a rise of Rs85.162 million. Current week’s figure was larger by Rs27,870.979 million over last year’s corresponding figure of Rs109,109.971 million.

According to the weekly statement of position of all scheduled banks for the week ended June 9, 2007, deposits and other accounts of the scheduled banks stood at Rs3,273.130 billion, higher by Rs6.959 billion over preceding week’s Rs3,266.171 billion. Commercial banks deposits showed a rise of Rs7.016 billion over the week to Rs3,261.575 billion, against preceding week’s Rs3,254.559 billion.

Borrowings by all scheduled banks decreased during the week over preceding week’s figure. It fell to Rs403.769 billion over preceding week’s figure of Rs416.456 billion, a fall of Rs12.687 billion. This was primarily due to a decline in the borrowings by commercial banks, which fell to Rs319.448 billion against previous week’s Rs333.033 billion, or by Rs13.585 billion.

Gross advances stood at Rs2,437.599 billion in the week under review, a decrease of Rs6.992 billion over preceding week’s Rs2,444.591 billion. Advances by commercial banks fell to Rs2,343.426 billion against earlier week’s Rs2,350.482 billion, or by Rs7.056 billion.

Investments of all scheduled banks increased in the week by Rs29.247 billion to Rs1,075.817 billion against preceding week’s Rs1,046.570 billion. Commercial banks investment rose to Rs1,064.860 billion, from earlier week’s Rs1,035.702 billion, larger by Rs29.158 billion.

Cash and balances with treasury banks of all scheduled banks declined by Rs8.977 billion during the week to stand at Rs336.471 billion against earlier week’s Rs345.448 billion. The figure for commercial banks stood at Rs334.033 billion against preceding week’s Rs343.101 billion, a fall of Rs9.068 billion.

Total assets of scheduled banks stood at Rs4,382.222 billion, lower by Rs6.462 billion, over preceding week’s Rs4,388.684 billion. Meanwhile, commercial banks assets stood at Rs4,265.617 billion, smaller by Rs6.972 billion over previous week’s Rs4,272.589 billion.