On June 9, the State Bank of Pakistan mopped up Rs15.4 billion from the banking system through an Open Market Operation.

On June 13, banks borrowed Rs18.5 billion from the SBP discount window. Overnight call rates were 11.90 per cent, just below the 12 per cent discount rate at which banks borrowed funds from the central bank three days repo facility.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended May 31, 2008, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs1,051.806 billion against earlier week’s figure of Rs1,067.685 billion, a fall of Rs15.879 billion. When compared to the corresponding week a year ago when it was Rs901.120 billion, the current week’s figure is higher by Rs150.686 billion.

Total notes issued also declined in the current week over preceding week’s level. At Rs1,051.972 billion it was smaller by Rs15.91 billion over the figure of Rs1,067.882 billion recorded a week earlier. In the corresponding week last year it amounted to Rs903.312 billion, which shows current week’s figure to be higher by Rs148.66 billion over last year’s corresponding figure.

Approved foreign exchange declined in the week to Rs424.345 billion or by Rs41.119 billion over preceding week’s figure of Rs465.464 billion. When compared to the corresponding week a year ago, when the figure was Rs629.040 billion, the current week’s figure is lower by Rs204.695 billion.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs166.984 billion over preceding week’s figure of Rs165.337 billion, a rise of Rs1.647 billion. Compared to last year’s corresponding figure of Rs105.337 billion, the current week’s figure is larger by Rs61.647 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 Rs10.406 billion over last year’s corresponding figure of Rs60.183 billion.

There was an inflow of Rs40.009 billion to the industrial sector during the week under review, a rise of Rs0.165 billion against preceding week’s figure of Rs39.844 billion. When compared to last year’s corresponding figure of Rs42.212 billion, the current week’s figure is smaller by Rs2.203 billion.

The export sector received Rs100.215 billion against previous week’s figure of Rs100.291 billion, smaller by Rs0.076 billion. Current week’s figure was smaller by Rs36.68 billion over last year’s corresponding figure of Rs136.895 billion.

According to the weekly statement of position of all scheduled banks for the week ended May 31, 2008, deposits and other accounts of the scheduled banks stood at Rs3,696.208 billion, larger by Rs42.711 billion over preceding week’s figure of

Rs3,653.497 billion. Commercial banks deposits showed a rise of Rs42.702 billion over the week to Rs3,683.805 billion, against preceding week’s Rs3,641.103 billion. Specialized banks deposits stood at Rs12.404 billion, against preceding week’s Rs12.394 billion, a rise of Rs0.01 billion.

Borrowings by all scheduled banks decreased during the week over preceding week’s figure. It fell to Rs433.961 billion over preceding week’s figure of Rs460.905 billion, a fall of Rs26.944 billion. This was primarily due to a fall in the borrowings by commercial banks, which fell to Rs352.725 billion against previous week’s Rs379.337 billion, or by Rs26.612 billion. Borrowings by specialized banks stood at Rs81.236 billion, against preceding week’s figure of Rs81.568 billion.

Gross advances stood at Rs2,964.509 billion in the week under review, a rise of Rs15.67 billion over preceding week’s figure of Rs2,948.839 billion. Advances by commercial banks increased to Rs2,867.343 billion against earlier week’s figure of Rs2,851.842 billion, or by Rs15.501 billion. Advances of specialized banks stood at Rs97.165 billion, larger by Rs0.167 billion over earlier week’s figure of Rs96.998 billion.

Investments of all scheduled banks declined in the week by Rs15.723 billion to Rs975.761 billion against preceding week’s figure of Rs991.484 billion. Commercial banks investment fell to Rs961.804 billion, from earlier week’s Rs977.550 billion, or by Rs15.746 billion. Specialised banks investment stood at Rs13.956 billion, against preceding week’s Rs13.934 billion, smaller by Rs0.031 billion.

Total assets of scheduled banks stood at Rs4,985.640 billion, higher by Rs21.036 billion, over preceding week’s figure of Rs4,964.604 billion. Meanwhile, commercial banks assets stood at Rs4,866.991 billion, larger by Rs21.183 billion over previous week’s figure of Rs4,845.808 billion. Specialized banks assets fell to Rs118.649 billion, or by Rs0.147 billion over previous week’s Rs118.796 billion.