ON APRIL 24, the State Bank of Pakistan (SBP) sold Rs3 billion 10-year Pakistan Investment Bonds against the total bids of more than Rs8.9 billion. The SBP has send a signal that it wants to keep interest rates stable.

Earlier, it was following an expansionary monetary policy and had cut its discount rate by 5 per cent points to 9 per cent by mid February. The central bank had also lowered the yield on Treasury bills, accordingly.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended April 20, 2002, both notes in circulation and those issued continued to decline in the week under review. Notes in circulation stood at Rs457,128.658 million against the figure of April 13, when it was Rs461,884.636 million, showing a decline of Rs4,855.978 million. When compared to the corresponding week a year ago when it was Rs402,034.044 million, the current week’s figure is higher by Rs55,094.614 million.

Total notes issued also depicted a ball in the current week. At Rs457,339.144 million it was smaller by Rs4,790.891 million over the figure of Rs462,130.035 million recorded a week earlier. In the corresponding week last year it amounted to Rs402,199.920 million, which shows current week’s figure to be higher by Rs55,139.224 million over the last year’s figure.

Approved foreign exchange including balances held outside Pakistan stood at Rs210,167.019 million, larger Rs26,280.486 million over preceding week’s figure of Rs183,886.533 million recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs55,626.591 million, the current week’s figure was higher by Rs154,540.428 million.

Balance held outside Pakistan in approved foreign exchange, declined in the week under review. It stood at Rs25,928.145 million over preceding week’s figure of Rs52,650.049 million, showing a fall of Rs26,721.904 million. Compared to last year’s corresponding figure of Rs12,557.384 million, the current week’s figure is substantially larger by Rs13,370.761 million.

Loans and advances of scheduled banks to the three sectors, agricultural, industrial and export show a mixed picture in the week under review. The agricultural sector received Rs54,019.441 million, similar to preceding week’s figure. The current week’s figure is lower by Rs795.863 million over last year’s corresponding figure of Rs54,815.304 million.

There was an inflow of Rs3,621.449 million to the industrial sector during the week under review, depicting a decline of Rs6.835 million over previous week’s Rs3,628.284 million. Compared to last year’s corresponding figure of Rs4,415.766 million, Me current week’s figure is lower by Rs794.317 million.

The export sector received Rs57,357.190 million over previous week’s figure of Rs57,678.234 million, showing a fall of Rs321.044 million. Current week’s figure was lower by Rs22,335.582 million over Last year’s corresponding figure of Rs79,692.772 million.

According to the weekly statement of position of scheduled banks for the week ended April 13, the sum of demand and time liabilities increased in the week under review as both type of deposits rose, as against a fall witnessed a week earlier. The sum total stood at Rs1,392,874 million against preceding week’s Rs1,385,122 million, showing a rise of Rs7752 million. As compared to the total deposits of Rs1,226,504 million in the corresponding period last year, current week’s deposits were higher by Rs166,370 million.

During the week under review, demand deposits rose to Rs620,404 million, or by Rs7,668 million over previous week’s Rs612,736 million, and was also higher against last year’s corresponding figure of Rs529,034 million by Rs91,370 million.

In the current week, time deposits were higher over the preceding week and against the corresponding week last year. At Rs772,470 million it was larger by Rs184 million over previous week’s Rs772,286 million, and by Rs75000 million, over last year’s corresponding figure of Rs772,470 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities dropped in the current week. At Rs128,286 million it was smaller by Rs274 million over preceding week’s Rs128,560 million. Compared to last year’s corresponding figure of Rs144,154 million, the current week’s figure is also lower by Rs15,868 million.

Scheduled banks borrowings from banks abroad stood at Rs14,153 million in the current week, as against Rs14,402 million a week ago, showing a fall of Rs249 million. It was lower by Rs1521 million over last year’s corresponding figure of Rs15,674 million.

Money at call and short notice in Pakistan showed a further fall the week under review. It stood at Rs41,080 million, a decline of Rs525 million over preceding week’s Rs41,605 million. When compared to last years corresponding figure of Rs31,936 million, the current figure is higher by Rs9,144 million.

Scheduled banks advances including bills purchased and discounted, showed a further decline in the week under review. At Rs957,321 minion it was smaller by Rs1,235 million over preceding week’s Rs958,556 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs919,317 million, the current week’s advances are higher by Rs38,004 minion.