On July 10, the State Bank of Pakistan sold Rs12.7bn of Treasury Bills under four-day repo contract at 9.95 per cent to mop up liquidity from the money market.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 28, 2008, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs1,050.148bn against earlier week’s figure of Rs1,064.541bn, a fall of Rs14.393bn. When compared to the corresponding week a year ago when it was Rs893.292bn, the current week’s figure is higher by Rs156.856bn.

Total notes issued also declined in the current week over preceding week’s level. At Rs1,050.308bn it was smaller by Rs14.436bn over the figure of Rs1,064.744bn recorded a week earlier. In the corresponding week last year it amounted to Rs893.428bn, which shows current week’s figure to be higher by Rs156.88bn over last year’s corresponding figure.

Approved foreign exchange increased in the week to Rs454.139bn or by Rs10.816bn over preceding week’s figure of Rs443.323bn. When compared to the corresponding week a year ago, when the figure was Rs685.468bn, the current week’s figure is lower by Rs231.329bn.

Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs143.807bn over preceding week’s figure of Rs150.629bn, a fall of Rs6.822bn. Compared to last year’s corresponding figure of Rs152.719bn, the current week’s figure is smaller by Rs8.912bn.

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 Rs49.777bn, similar to preceding week’s figure. The current week’s figure is smaller by Rs12.451bn over last year’s corresponding figure of Rs62.228bn.

There was an inflow of Rs39.465bn to the industrial sector during the week under review, a fall of Rs0.264bn against preceding week’s figure of Rs39.729bn. When compared to last year’s corresponding figure of Rs42.149bn, the current week’s figure is smaller by Rs2.684bn.

The export sector received Rs100.963bn against previous week’s figure of Rs100.057bn, larger by Rs0.906bn. Current week’s figure was smaller by Rs33.658bn over last year’s corresponding figure of Rs134.621bn.

According to the weekly statement of position of all scheduled banks for the week ended June 28, 2008, deposits and other accounts of the scheduled banks stood at Rs3,832.454bn, larger by Rs127.411bn over preceding week’s figure of Rs3,705.043bn. Commercial banks deposits showed a rise of Rs127.221bn over the week to Rs3,819.582bn, against preceding week’s Rs3,692.361bn. Specialised banks deposits stood at Rs12.871bn, against preceding week’s Rs12.682bn, a rise of Rs0.189bn.

Borrowings by all scheduled banks decreased during the week over preceding week’s figure. It fell to Rs389.585bn over preceding week’s figure of Rs426.452bn, a fall of Rs36.867bn. This was primarily due to a decline in the borrowings by commercial banks, which fell to Rs308.104bn against previous week’s Rs344.986bn, or by Rs36.882bn. Borrowings by specialised banks stood at Rs81.481bn, against preceding week’s figure of Rs81.466bn.

Gross advances stood at Rs2,943.319bn in the week under review, a rise of Rs8.265bn over preceding week’s figure of Rs2,935.054bn. Advances by commercial banks increased to Rs2,845.364bn against earlier week’s figure of Rs2,836.879bn, or by Rs8.485bn. Advances of specialised banks stood at Rs97.955bn, larger by Rs0.22bn over earlier week’s figure of Rs98.175bn.

Investments of all scheduled banks increased in the week by Rs11.54bn to Rs1,007.529bn against preceding week’s figure of Rs995.989bn. Commercial banks investment rose to Rs993.066bn, from earlier week’s Rs982.074bn, or by Rs10.992bn. Specialised banks investment stood at Rs14.463bn, against preceding week’s Rs13.915bn, higher by Rs0.548bn.