At the Treasury bill auction on December 31, 2008, the cut-off yield on 6-month paper fell, while it rose for 3-month T-bills.

The cut-off yield on 6-month Treasury bills fell to 13.9959 per cent, while weighted average yield on the 6-month paper also fell to 13.9959 per cent, compared with 14.0108 per cent in the previous auction on December 17, the State Bank of Pakistan said.

The cut-off yield on the 3-month paper rose to 13.9750 per cent, and the weighted average yield rose to 13.8472 per cent, compared with 13.8397 per cent. The cut-off yield on the 12-month paper was 14.2595 per cent, and the weighted average yield was 14.2529 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended December 20, 2008, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs1,238.953 billion against earlier week’s figure of Rs1,261.140 billion, a fall of Rs22.187 billion. When compared to the corresponding week a year ago when it was Rs1,065.595 billion, the current week’s figure is higher by Rs173.358 billion.

Total notes issued also decreased in the current week over preceding week’s level. At Rs1,239.100 billion it was smaller by Rs22.204 billion over the figure of Rs1,261.304 billion recorded a week earlier. In the corresponding week last year it amounted to Rs1,065.724 billion, which shows current week’s figure to be higher by Rs173.376 billion over last year’s corresponding figure.

Approved foreign exchange decreased in the week to Rs165.000 billion or by Rs82.887 billion over preceding week’s figure of Rs247.887 billion. When compared to the corresponding week a year ago, when the figure was Rs676.552 billion, the current week’s figure is lower by Rs511.552 billion.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs365.560 billion over preceding week’s figure of Rs277.045 billion, a rise of Rs88.515 billion. Compared to last year’s corresponding figure of Rs145.258 billion, the current week’s figure is larger by Rs220.302 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 Rs58.229 billion, against preceding week’s figure of Rs57.777 billion, a rise of 0.452 billion. The current week’s figure is larger by Rs0.374 billion over last year’s corresponding figure of Rs57.855 billion.

There was an inflow of Rs36.365 billion to the industrial sector during the week under review, a rise of Rs0.006 billion against preceding week’s figure of Rs36.359 billion. When compared to last year’s corresponding figure of Rs40.490 billion, the current week’s figure is smaller by Rs4.125 billion.

The export sector received Rs154.422 billion against previous week’s figure of Rs152.267 billion, higher by Rs2.155 billion. Current week’s figure was larger by Rs54.147 billion over last year’s corresponding figure of Rs100.275 billion.

According to the weekly statement of position of all scheduled banks for the week ended December 27, 2008, deposits and other accounts of the scheduled banks rose in the current week and stood at Rs3,801.411 billion, higher by Rs40.699 billion over preceding week’s figure of Rs3,760.712 billion. Compared with last year’s corresponding figure of Rs3,565.537 billion, the current week’s figure is larger by Rs235.874 billion. During the current week commercial banks deposits showed a rise of Rs40.664 billion over the week to Rs3,789.958 billion, against preceding week’s Rs3,749.294 billion. Specialised banks deposits stood at Rs11.453 billion, against preceding week’s Rs11.419 billion, a rise of Rs0.034 billion.

Borrowings by all scheduled banks decreased in the week. It fell to Rs426.065 billion over preceding week’s figure of Rs432.512 billion, a fall of Rs6.447 billion. Compared to last year’s corresponding figure of Rs439.335 billion, current week’s figure is smaller by Rs13.27 billion. Commercial banks borrowings fell to Rs344.891 billion against previous week’s Rs351.338 billion, or by Rs6.447 billion. Borrowings by specialized banks stood at Rs81.174 billion similar to preceding week’s figure.

Gross advances stood at Rs3,141.028 billion in the week under review, a rise of Rs2.347 billion over preceding week’s figure of Rs3,138.681 billion. Compared to last year’s corresponding figure of Rs2,651.173 billion, current week’s figure is larger by Rs489.855 billion. In the week under review, advances by commercial banks rose to Rs3,040.517 billion against earlier week’s figure of Rs3,038.165 billion, or by Rs2.352 billion. Advances of specialised banks stood at Rs100.511 billion, smaller by Rs0.005 billion over earlier week’s figure of Rs100.516 billion.

Investments of all scheduled banks increased in the week by Rs7.381 billion to Rs980.984 billion against preceding week’s figure of Rs973.603 billion. Compared to last year’s corresponding figure of Rs1,210.920 billion, current week’s figure is smaller by Rs229.936 billion. In the current week, commercial banks investment increased to Rs972.405 billion, from earlier week’s Rs965.004 billion, or by Rs7.401 billion. Specialised banks investment stood at Rs8.578 billion, against preceding week’s Rs8.599 billion, lower by Rs0.021 billion.

Cash and balances with treasury banks of all scheduled banks rose by Rs18.132 billion during the week to stand at Rs359.285 billion against earlier week’s Rs341.153 billion. Current week’s figure is higher by Rs15.567 billion compared to last year’s corresponding figure of Rs343.718 billion. In the current week, the figure for commercial banks stood at Rs356.726 billion against preceding week’s figure of Rs338.612 billion, a rise of Rs18.114 billion, while of specialised banks it stood at Rs2.559 billion over previous week’s Rs2.541 billion.

Total assets of scheduled banks stood at Rs5,137.638 billion, higher by Rs44.37 billion, over preceding week’s figure of Rs5,093.268 billion. Current week’s figure was higher by Rs309.062 billion compared to last year’s corresponding figure of Rs4,828.576 billion. In the current week, commercial banks assets stood at Rs5,014.504 billion, higher by Rs44.277 billion over previous week’s figure of Rs4,970.227 billion. Specialised banks assets rose to Rs123.134 billion, or by Rs0.092 billion over previous week’s Rs123.042 billion.