ON MAY 2, 2002, the State Bank of Pakistan mopped up Rs32.9 billion from the inter-bank market through the sale of Treasury Bills. The auction of the Bills had generated Rs44 billion, whereas the State Bank had set the sale target at Rs22 billion.

The SBP kept the cut-off on six-month and one year T-bills almost unchanged at 6.43 per cent and 6.99 per cent.

The central bank siphoned off Rs22 billion from the system by selling Rs22.8 billion worth of six-month T-bills. It squeezed out Rs7.6 billion through sale of one year T-bills worth Rs8.1 billion. The SBP moped up another Rs3.2 billion through the sale of Rs3.3 billion worth of three-month Bills at a maximum yield of 5.81 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended April 27, 2002, both notes in circulation and those issued continued to decline in the week under review. Notes in circulation stood at Rs450,841.489 million against the figure of April 20, when it was Rs457,128.658 million, showing a decline of Rs6,287.169 million. When compared to the corresponding week a year ago when it was Rs395,715.633 million, the current week’s figure is higher by Rs55,125.856 million.

Total notes issued also depicted a decline in the current week. At Rs451,032.125 million it was smaller by Rs6,307.019 million over the figure of Rs457,339.144 million recorded a week earlier. In the corresponding week last year it amounted to Rs395,893.649 million which shows current week’s figure to be higher by Rs55,138.476 million over Last year’s figure.

Approved foreign exchange including balances held outside Pakistan stood at Rs212,648.666 million, larger Rs2,481.647 million over preceding week’s figure of Rs210,167.019 million recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs 52,641.315 million, the current week’s figure was higher by Rs 160,007.351 million.

Balances held outside Pakistan in approved foreign exchange, declined further in the week under review. It stood at Rs25,036.843 million over preceding week’s figure of Rs25,928.145 million, showing a fall of Rs891.302 million. Compared to last year’s corresponding figure of Rs15,298.150 million, the current week’s figure is substantially larger by Rs9,738.693 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 Rs53,899.441 million, against preceding week’s figure of Rs54,019.441 million showing a fall of Rs120 million. The current week’s figure is lower by Rs158.041 million over last year’s corresponding figure of Rs54,057.482 million.

There was an inflow of Rs3,628.110 million to the industrial sector during the week under review, depicting a decline of Rs6.661 million over previous week’s Rs3,621.449 minion. Compared to last year’s corresponding figure of Rs4,397.243 million, the current week’s figure is lower by Rs769.133 million.

The export sector received Rs57,432.591 million over previous week’s figure of Rs57,357.190 million, showing a rise of Rs75.401 million. Current week’s figure was lower by Rs22,290.017 million over last year’s corresponding figure of Rs79,722.608 million.

According to the weekly statement of position of scheduled banks for the week ended April 20, the sum of demand and time liabilities maintained the upward trend in the week under review, as both type of deposits rose. The sum total stood at Rs1,396,229 million against preceding week’s Rs1,392,874 million, showing a rise of Rs3355 million. As compared to the total deposits of Rs1,221,510 million in the corresponding period last year, current week’s deposits were higher by Rs174,719 million.

During the week under review, demand deposits rose to Rs622,423 million, or by Rs2,019 million over previous week’s Rs620,404 minion, and was also hither against last year’s corresponding figure of Rs527,207 million by Rs95,216 minion.

In the current week, time deposits were higher over the preceding week and also against the corresponding week last year. At Rs773,806 million, it was larger by Rs1336 million over previous week’s Rs772,470 million, and by Rs79,503 million, over last year’s corresponding figure of Rs694,303 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week as against a fall recorded a week ago. At Rs133,525 million it was larger by Rs5,239 million over preceding week’s Rs128,286 million. Compared to last year’s corresponding figure of Rs144,464 million, the current week’s figure is however, lower by Rs10,939 million.

Scheduled banks borrowings from banks abroad stood at Rs13,554 million in the current week as against Rs14,153 million a week ago, showing a fall of Rs599 million. It was lower by Rs761 million over last year’s corresponding figure of Rs14,315 million.

Money at call and short notice in Pakistan showed a further fall in the week under review. It stood at Rs37,599 million, a decline of Rs3,481 million over preceding week’s Rs41,080 million. When compared to last years corresponding figure of Rs30,645 million, the current figure is higher by Rs6,954 million.

Scheduled banks advances including bills purchased and discounted, showed a further decline in the week under review. At Rs954,750 million it was smaller by Rs2,571 million over preceding week’s Rs957,321 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs918,129 million, the current week’s advances are higher by Rs36,621 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities which had declined a week earlier, rose in the week under review. Such investment amounted to Rs390,426 million, a rise of Rs5,934 million over previous week’s Rs384,492 million. Compared to last year’s corresponding figure of Rs297,367 million, the current week’s investment is higher by Rs96,059 million.

Total assets of scheduled banks showed an increase in the week under review. These rose to Rs2,169,026 million against previous week’s Rs2,164,413 million, showing a rise of Rs4,613 million. Compared to last year’s corresponding figure of Rs1,851,715 million it shows a rise of Rs317,311 million.