The market continues to be liquid. The State Bank of Pakistan at the OMO conducted on July 4, sucked in Rs12 billion from the money market through the sale of Treasury bills. The T-bills were sold for one-week repos at a return of 4.74 per cent per annum. Total bids received were of Rs16.850 billion.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 29, 2002, both notes in circulation and those issued declined further in the week under review. Notes in circulation stood at Rs460,683.320 million against the earlier week’s figure of Rs466,785.059 million, showing a fall of Rs6,101.739 million. Compared to the corresponding week a year ago when it was Rs.392,936.522 million, the current week’s figure is higher by Rs67,746.798 million.

Total notes issued also recorded a fall in the current week. At Rs460,874.924 million it was smaller by Rs6,058.583 million over the figure of Rs466,933.507 million recorded a week earlier. In the corresponding week last year it amounted to Rs393,114.120 million, which shows current week’s figure to be higher by Rs67,760.804 million over last year’s figure.

The approved foreign exchange including balances held outside Pakistan stood at Rs245,316.402 million, smaller by Rs80.158 million over preceding week’s figure of Rs245,396.560 million recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs111,027.187 million, the current week’s figure was higher by Rs134,289.215 million.

Balances held outside Pakistan in approved foreign exchange climbed substantially in the week under review. It stood at Rs42,585.875 million over preceding week’s figure of Rs35,390.197 million, showing a rise of Rs7,195.678 million. Compared to last year’s corresponding figure of Rs27,934.215 million, the current week’s figure is larger by Rs20,651.66 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 Rs55,163.836 million, against preceding week’s figure of Rs54,454.098 million, showing a rise of Rs709.738 million. The current week’s figure is larger by Rs556.786 million over last year’s corresponding figure of Rs54,607.050 million.

There was an inflow of Rs3,415.127 million to the industrial sector during the week under review, depicting a decline of Rs22.454 million over previous week s Rs3,437.581 million. When compared to last year’s corresponding figure of Rs4,242.379 million, the current week’s figure is lower by Rs827.252 million. The export sector received Rs59,547.751 million over previous week’s figure of Rs58,591.911 million, showing a rise of Rs955.84 million. Current week’s figure was lower by Rs15,924.45 million over last year’s corresponding figure of Rs75,472.201 million.

According to the weekly Statement of Position of scheduled banks for the week ended June 22,2002, the sum of demand and time liabilities maintained an upward trend in the week under review, as both demand and times deposits recorded an increase.

The sum total stood at Rs1,447,266 million, showing a rise of Rs9,186 million over preceding week’s figure of Rs1,438,080 million. As compared to the total deposits of Rs1,263,842 million in the corresponding period last year, the current week’s deposits were higher by Rs183,427 million.

During the week under review, demand deposits showed an increase of Rs5,525 million, rising to Rs643,053 million over previous week’s Rs637,528 million, and was also higher against last year’s corresponding figure of Rs546,065 million by Rs96,988 million.

Meanwhile, time liabilities grew by Rs3,661 million to Rs804,213 million against preceding week’s Rs800,552 million. Compared to last year’s corresponding figure of Rs717,777 million, the current week’s figure is higher by Rs86,436 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs136,149 million it was larger by Rs645 million over preceding week’s Rs135,504 million. Compared to last year’s corresponding figure of Rs141,397 million, the current week’s figure is lower by Rs5,248 million.

Scheduled banks borrowings from banks abroad stood at Rs12,904 million in the current week, as against Rs13,224 million a week ago, showing a fall of Rs320 million. It was also lower by Rs2,360 million over last year’s corresponding figure of Rs15,264 million.

Money at call and short notice in Pakistan declined in the week under review. It stood at Rs34,656 million, showing a fall of Rs2,661 million over preceding week’s Rs37,317 million. When compared to last year’s corresponding figure of Rs28,310 million, the current week’s figure is however, higher by Rs6,346 million.

Scheduled banks advances including bills purchased and discounted, showed an increase in the week under review. At Rs949,777 million it was larger by Rs1,661 million over preceding week’s figure of Rs948,116 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs924,979 million, the current week’s advances are higher by Rs24,798 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities, maintained an upward trend in the week under review. Such investments amounted to Rs472,965 million, showing a rise of Rs37,288 million over previous week’s Rs435,677 million. Compared to last year’s corresponding figure of Rs288,302 million, the current week’s investment is higher by Rs184,663 million.

Total assets of scheduled banks showed an increase in the week under review. These rose to Rs2,236,233 million against previous week’s Rs2,226,960 million showing a rise of Rs9,273 million. Compared to last year’s corresponding figure of Rs1,922,138 million, it shows a rise of Rs314,095 million.