On March 4, the short-term money rates rose sharply after the State Bank of Pakistan sold 56-day Treasury Bills in an outright sale. Overnight call rates ended at 10.40 per cent, up from March 2, close of nine per cent, and just below the discount rate of 10.50 per cent.

The central bank sold Rs4.5 billion in 56-day T-bills at 9.45 per cent to primary dealers on March 4 in an outright sale to mop up funds from the money market.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended February 23, 2008, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs1,050.242 billion against earlier week’s figure of Rs1,055.310 billion, a fall of Rs5.068 billion. When compared to the corresponding week a year ago when it was Rs792.536 billion, the current week’s figure is higher by Rs257.706 billion.

Total notes issued also declined in the current week over preceding week’s level. At Rs1,050.372 billion it was smaller by Rs5.105 billion over the figure of Rs1,055.477 billion recorded a week earlier. In the corresponding week last year it amounted to Rs792.694 billion, which shows current week’s figure to be higher by Rs257.678 billion over last year’s corresponding figure.

Approved foreign exchange decreased in the week to Rs610.182 billion or by Rs19.332 billion over preceding week’s figure of Rs629.514 billion. When compared to the corresponding week a year ago, when the figure was Rs425.224 billion, the current week’s figure is higher by Rs184.958 billion.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs140.671 billion over preceding week’s figure of Rs130.306 billion, a rise of Rs10.365 billion. Compared to last year’s corresponding figure of Rs147.660 billion, the current week’s figure is smaller by Rs6.989 billion.

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 Rs49.777 billion, similar to preceding week’s figure. The current week’s figure is smaller by Rs10.931 billion over last year’s corresponding figure of Rs60.708 billion.

There was an inflow of Rs39.593 billion to the industrial sector during the week under review, a rise of Rs0.052 billion against preceding week’s figure of Rs39.541 billion. When compared to last year’s corresponding figure of Rs4.912 billion, the current week’s figure is higher by Rs34.681 billion.

The export sector received Rs97.357 billion against previous week’s figure of Rs96.441 billion, higher by Rs0.916 billion. Current week’s figure was smaller by Rs5.243 billion over last year’s corresponding figure of Rs102.600 billion.

According to the weekly statement of position of all scheduled banks for the week ended February 23, 2008, deposits and other accounts of the scheduled banks stood at Rs3,591.861 billion, higher by Rs5.375 billion over preceding week’s figure of Rs3,586.486 billion. Commercial banks deposits showed an increase of Rs5.371 billion over the week to Rs3,579.415 billion, against preceding week’s Rs3,574.044 billion. Specialised banks deposits stood at Rs12.447 billion, against preceding week’s Rs12.441 billion, a rise of Rs0.006 billion.

Borrowings by all scheduled banks decreased during the week over preceding week’s figure. It fell to Rs447.042 billion over preceding week’s figure of Rs448.470 billion, a fall of Rs1.428 billion. This was primarily due to a fall in the borrowings by commercial banks, which fell to Rs366.193 billion against previous week’s Rs367.584 billion, or by Rs1.391 billion. Borrowings by specialized banks stood at Rs80.849 billion, against preceding week’s figure of Rs80.887 billion.

Gross advances stood at Rs2,734.642 billion in the week under review, an increase of Rs5.165 billion over preceding week’s figure of Rs2,729.477 billion. Advances by commercial banks rose to Rs2,641.403 billion against earlier week’s figure of Rs2,633.443 billion, or by Rs7.96 billion. Advances of specialized banks stood at Rs93.239 billion, smaller by Rs2.795 billion over earlier week’s figure of Rs96.034 billion.

Investments of all scheduled banks increased in the week by Rs2.436 billion to Rs1,163.455 billion against preceding week’s figure of Rs1,161.019 billion. Commercial banks investment rose to Rs1,150.128 billion, from earlier week’s Rs1,147.502 billion, or by Rs2.626 billion. Specialized banks investment stood at Rs13.327 billion, against preceding week’s Rs13.517 billion, smaller by Rs0.19 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs1.938 billion during the week to stand at Rs354.345 billion against earlier week’s Rs352.407 billion. The figure for commercial banks stood at Rs351.542 billion against preceding week’s figure of Rs349.639 billion, a rise of Rs1.903 billion, while of specialized banks it stood at Rs2.803 billion over previous week’s Rs2.768 billion.

Total assets of scheduled banks stood at Rs4,862.389 billion, larger by Rs10.806 billion, over preceding week’s figure of Rs4,851.583 billion. Meanwhile, commercial banks assets stood at Rs4,744.335 billion, higher by Rs10.341 billion over previous week’s figure of Rs4,733.994 billion. Specialized banks assets rose to Rs118.055 billion, or by Rs0.465 billion over previous week’s Rs117.590 billion.