On April 27, the State Bank of Pakistan sold six-month Treasury bills for one billion rupees against the target of Rs5 billion and the cut-off yield remained unchanged at 1.84 per cent.

By keeping the rate unchanged, the Bank sent a signal that for the time being it wants to hold the six months T-bill rates stable. In an auction held on April 28, the Bank sold Rs15 billion 10-year Pakistan Investment Bonds at a cut-off yield of 6.49 per cent up from 6.23 per cent in December 2003.

This was part of the total sale of Rs26.3 billion worth of the PIBs of different tenures. The central bank plans to auction another lot of Rs10 billion PIBs in May.According to the weekly statement of position of scheduled banks for the week ended April 17, 2004, the sum of demand and time liabilities increased in the week under review.

The sum total stood at Rs1,955,544 million against preceding week's Rs1,949,699 million, showing a rise of Rs5,845 million. As compared to the total deposits of Rs1,645,276 million in the corresponding period last year, current week's deposits were higher by Rs310,268 million.

During the week under review, demand deposits stood at Rs972,369 million, a rise of Rs7,237 million over previous week's Rs965,132 million. It was also, higher against last year's corresponding figure of Rs755,528 million by Rs216,841 million.

However, time deposits declined in the current week over preceding week's figure. At Rs983,175 million it was smaller by Rs1,392 million over previous week's Rs984,567 million but higher by Rs93,427 million over last year's corresponding figure of Rs889,748 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs153,568 million it was larger by Rs1,625 million over preceding week's Rs151,943 million. Compared to last year's corresponding figure of Rs127,895 million, the current week's figure is higher by Rs25,673 million.

Scheduled banks borrowings from banks abroad stood at Rs5,376 million in the current week, as against Rs5,567 million a week ago, showing a fall of Rs191 million. It was also, smaller by Rs10,379 million over last year's corresponding figure of Rs15,755 million.

Money at call and short notice in Pakistan declined in the week over previous week's figure. It stood at Rs28,741 million, a fall of Rs.2,036 million over preceding week's Rs30,777 million. When compared to last year's corresponding figure of Rs23,311 million, the current figure is higher by Rs5,430 million.

Scheduled banks advances including bills purchased and discounted increased in the week under review. At Rs1,228,350 million it was larger by Rs13,283 million over preceding week's Rs1,215,067 million.

Compared to the corresponding figure a year ago, when advances were to the tune of Rs998,248 million, the current week's advances are higher by Rs230,102 million. Scheduled banks investment in central government securities, Treasury bills and other approved securities increased in the current week when compared to preceding week's level.

Such investments amounted to Rs769,986 million, a rise of Rs8,623 million over previous week's Rs761,363 million. Compared to last year's corresponding figure of Rs694,163 million, the current week's investment is higher by Rs75,823 million.

Total assets of scheduled banks increased in the week under review. These stood at Rs2,787,748 million against previous week's Rs2,778,621 million, a rise of Rs9,127 million. Compared to last year's corresponding figure of Rs2,530,117 million it shows a rise of Rs257,631 million.