On October 16, the State Bank of Pakistan sold Rs19.75 billion worth of 6-month Treasury bills at a cut-off yield of 6.37 per cent, down from the previous 6.39 per cent. The National Bank of Pakistan and the Habib Bank Ltd made large investments in T-bills. They had earlier received inflows through the maturity of previously purchased bills. It was mainly reinvestment of the same funds.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended October 12, 2002, both notes in circulation and those issued rose in the week under review. Notes in circulation stood at Rs469,901.246 million against the earlier week’s figure of Rs462,581.211 million, showing a rise of Rs7,320.035 million. When compared to the corresponding week a year ago when it was Rs415,527.947 million, the current week’s figure is higher by Rs54,373.299 million.

Total notes issued also recorded a rise in the current week. At Rs470,062.133 million it was larger by Rs7,295.786 million over the figure of Rs462,766.347 million recorded a week earlier. In the corresponding week last year it amounted to Rs415,732.123 million, which shows current week’s figure to be higher by Rs54,330.01 million over last year’s figure.

Approved foreign exchange including balances held outside Pakistan stood at Rs327,210.253 million, smaller by Rs55.093 million over preceding week’s figure of Rs327,265.346 million recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs117,407.575 million, the current week’s figure was higher by Rs209,802.678 million. Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs54,419.727 million over preceding week’s figure of Rs51,996.088 million, showing a rise of Rs2,423.639 million. Compared to last year’s corresponding figure of Rs17,274.361 million, the current week’s figure is larger by Rs37,145.366 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 Rs53,855.026 million, similar preceding week’s figure. The current week’s figure is smaller by Rs458.764 million over last year’s corresponding figure of Rs54,313.790 million.

There was an inflow of Rs3,283.871 million to the industrial sector during the week under review, depicting a decline of Rs17.649 million over previous week’s Rs3,301.520 million. When compared to last year’s corresponding figure of Rs3,962.201 million, the current week’s figure is lower by Rs678.33 million. The export sector received Rs48,881.005 million over previous week’s figure of Rs48,922.831 million, showing a fall of Rs41.826 million. Current week’s figure was lower by Rs8,735.373 million over last year’s corresponding figure of Rs57,616.378 million.

According to the weekly Statement of Position of scheduled banks for the week ended October 5, 2002, the sum of demand and time liabilities declined in the week under review, as demand deposits recorded a fall. The sum total stood at Rs1,535,070 million, showing a decline of Rs5,334 million over preceding week’s figure of Rs1,540,404 million. As compared to the total deposits of Rs1,288,423 million in the corresponding period last year, the current week’s deposits were higher by Rs246,647 million.

During the week under review, demand deposits decreased by Rs15,544 million, falling to Rs666,283 million, over previous week’s figure of Rs681,827 million, and was higher against last year’s corresponding figure of Rs563,061 million by Rs103,222 million.

Meanwhile, time liabilities increased by Rs10,210 million to Rs868,787 million against preceding week’s Rs858,577 million. Compared to last year’s corresponding figure of Rs725,362 million, the current week’s figure is higher by Rs143,425 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs127,446 million it was higher by Rs662 million over preceding week’s Rs126,784 million. Compared to last year’s corresponding figure of Rs121,558 million, the current week’s figure is lower by Rs5,888 million.

Scheduled banks borrowings from banks abroad stood at Rs17,058 million in the current week, as against Rs14,861 million a week ago, showing a rise of Rs2,197 million. It was lower by Rs2,560 million over last year’s corresponding figure of Rs14,498 million.

Money at call and short notice in Pakistan increased in the week under review. It stood at Rs38,419 million, showing a rise of Rs704 million over the preceding week’s Rs37,715 million.