The State Bank of Pakistan, has lowered the special cash reserve on new foreign currency accounts from 20 per cent to 15 per cent. It has kept intact the mandatory reserves at 5 per cent.

All banks and non-bank financial institutions from now onwards would maintain cash reserves in the US dollars equivalent to not less than 20 per cent of their total fresh foreign currency deposits instead of 25 per cent.

Of this 5 per cent would continue to be treated as the mandatory reserves and the remaining 15 per cent as the special cash reserves.

According to the Weekly Statement of Position of Scheduled Banks for the week ended August 3,2002, the sum of demand and time liabilities rose further in the week under review, mainly because of a rise in time liabilities, as the week witnessed a drop in demand liabilities.

The sum total stood at Rs1,500,482 million, showing a rise of Rs2,733 million over preceding week’s figure of Rs1,497,749 million. As compared to the total deposits of Rs1,305,565 million in the corresponding period last year, the current week’s deposits were higher by Rs194,917 million.

During the week under review, demand deposits fell by Rs2,058 million to Rs662,080 million over previous week’s Rs664,138 million.

It was higher against last year’s corresponding figure of Rs568,399 million by Rs93,681 million.

Meanwhile, time liabilities rose by Rs4,791 million to Rs838,402 million against preceding week’s Rs833,611 million. Compared to last year’s corresponding figure of Rs737,166 million, the current week’s figure is higher by Rs101,236 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities declined further in the current week.

At Rs130,337 million it was lower by Rs.4,763 million over preceding week’s Rs135,100 million. Compared to last year’s corresponding figure of Rs134,942 million, the current week’s figure is lower by Rs4,605 million.

Scheduled banks borrowings from banks abroad stood at Rs14,518 million in the current week, as against Rs14,568 million a week ago, showing a decline of Rs50 million. It was however, higher by Rs279 million over last year’s corresponding figure of Rs14,797 million.

Money at call and short notice in Pakistan declined in the week under review.

It stood at Rs34,967 million, showing a fall of Rs1,862 million over preceding week’s Rs36,829 million. When compared to last year’s corresponding figure of Rs28,763 million, the current week’s figure is higher by Rs6,204 million.

Scheduled banks advances including bills purchased and discounted, showed a further fall in the week under review. At Rs945,424 million it was lower by Rs3,090 million over preceding week’s figure of Rs948,514 million.

Compared to the corresponding figure a year ago, when advances were to the tune of Rs932,559 million, the current week’s advances are higher by Rs12,865 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities also declined in the week under review. Such investments amounted to Rs532,545 million, showing a fall of Rs3,755 million over previous week’s Rs536,300 million.

Compared to last year’s corresponding figure of Rs317,980 million, the current week’s investment is higher by Rs214,565 million.

Total assets of scheduled banks decreased in the week under review.

These stood at Rs2,348,344 million against previous week’s Rs2,350,622 million, showing a fall of Rs2,278 million. Compared to last year’s corresponding figure of Rs1,984,957 million, the current week’s figure shows a rise of Rs363,387 million.