On December 30, 2003 the State Bank of Pakistan mopped up Rs17.5 billion from the banking system for one-week repo at an open market operation. The SBP drained liquidity from the system through one-week repo of the T-bills at 4.75 per cent.

On December 20, the central bank had siphoned off Rs12 billion from the banking system through two-week repo of the T-bills at 2 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended December 27, 2003, balances held outside Pakistan in approved foreign exchange increased. It stood at Rs91,162.400 million over preceding week's figure of Rs79,905.332 million, showing an increase of Rs11,257.068 million. Compared to last year's corresponding figure of Rs60,274.416 million, the current week's figure is substantially higher by Rs30,887.984 million.

Loans and advances of scheduled banks to the three sectors - agricultural, industrial and export showed a mixed picture in the week under review. The agricultural sector received Rs55,643.904 million, against preceding week's figure of Rs55,443.904 million, showing an increase of Rs200 million. The current week's figure is larger by Rs1,579.716 million over last year's corresponding figure of Rs54,064.188 million.

There was an inflow of Rs2,577.345 million to the industrial sector during the week under review, depicting a decline of Rs31.045 million over previous week's Rs2,608.390 million. When compared to last year's corresponding figure of Rs3,178.692 million, the current week's figure is lower by Rs601.347 million.

The export sector received Rs77,311.932 million against previous week's figure of Rs75,538.761 million, showing a rise of Rs1,773.171 million. Current week's figure was larger by Rs32,269.626 million over last year's corresponding figure of Rs45,042.306 million.

According to the weekly statement of position of scheduled banks for the week ended December 20, 2003, the sum of demand liabilities decreased over preceding week's figure. Demand deposits fell while time liabilities increased in the week under review. The sum total stood at Rs1,846,427 million against preceding week's Rs1,862,375 million, showing a fall of Rs15,948 million. As compared to the total deposits of Rs1,607,537 million in the corresponding period last year, current week's deposits were higher by Rs238,890 million.

During the week under review, demand deposits recorded a fall, while time deposits increased. Demand deposits fell to Rs921,793 million, a fall of Rs23,476 million over previous week's Rs945,269 million. It was however, higher against last year's corresponding figure of Rs718,508 million by Rs203,285 million.

In the current week, time deposits rose over preceding week's figure. At Rs924,634 million, it was larger by Rs7,528 million over previous week's Rs917,106 million and higher by Rs35,605 million, over last year's corresponding figure of Rs889,029 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities increased in the current week. At Rs152,078 million it was larger by Rs893 million over preceding week's Rs151,185 million. Compared to last year's corresponding figure of Rs136,213 million, the current week's figure is higher by Rs15,865 million.

Scheduled banks borrowings from banks abroad stood at Rs20,511 million in the current week, as against Rs22,499 million a week ago, showing a fall of Rs1,988 million. It was larger by Rs5,921 million over last year's corresponding figure of Rs14,590 million.

Money at call and short notice in Pakistan declined in the week over previous week's figure. It stood at Rs20,975 million, a fall of Rs1,391 million over preceding week's Rs22,366 million. When compared to last year's corresponding figure of Rs30,796 million, the current figure is lower by Rs9,821 million.

Scheduled banks advances including bills purchased and discounted increased in the week under review. At Rs1,157,835 million it was larger by Rs9,366 million over preceding week's Rs1,148,469 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs993,994 million, the current week's advances are higher by Rs163,841 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 Rs767,068 million, a rise of Rs16,728 million over previous week's Rs750,340 million. Compared to last year's corresponding figure of Rs617,062 million, the current week's investment is higher by Rs150,006 million.

Total assets of scheduled banks decreased in the week under review. These stood at Rs2,660,040 million against previous week's Rs2,675,238 million, a fall of Rs15,198 million. Compared to last year's corresponding figure of Rs2,519,269 million it shows a rise of Rs140,771 million.