On July 9, the State Bank of Pakistan sold Rs75.72 billion worth of T-bills through its open market operations. The total included Rs7.97 billion for 3-month bills and Rs67.75 billion for 12-month T-bills.

The SBP received bids worth Rs153.3 billion against a pre-auction target of Rs70 billion. It included Rs8 billion for 3-month bills and Rs145.3 billion for 12-month bills.

The cut-off yield for the accepted bids on the 12-month T- bills was set at 2.1719 per cent against 2.3711 per cent the previous auction.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 29, 2003, both notes in circulation and those issued declined further in the week under review. Notes in circulation stood at Rs524,889.747 million against earlier week’s figure of Rs532,864.720 million, showing a fall of Rs7,974.973 million. When compared to the corresponding week a year ago when it was Rs460,683.320 million, the current week’s figure is higher by Rs64,206.427 million.

Total notes issued also recorded a fall in the current week. At Rs525,112.852 million it was smaller by Rs7,931.55 million over the figure of Rs533,044.402 million recorded a week earlier. In the corresponding week last year it amounted to Rs460,874.924 million, which shows current week’s figure to be higher by Rs64,237.928 million over last year’s figure.

Approved foreign exchange also declined in the week, falling to Rs459,114.586 million, or by Rs5,822.351 million over preceding week’s figure of Rs464,936.937 million. When compared to the corresponding week a year ago, when the figure was Rs245,316.402 million, the current week’s figure was higher by Rs213,798.184 million.

Balances held outside Pakistan in approved foreign exchange showed a further increase in the week under review. It stood at Rs104,044.570 million over preceding week’s figure of Rs96,257.924 million, showing a rise of Rs7,786.646 million. Compared to last year’s corresponding figure of Rs42,585.875 million, the current week’s figure is substantially higher by Rs61,458.695 million.

Loans and advances of scheduled banks to the three sectors — agricultural, industrial and export showed a mixed picture in the week under review. The agricultural sector received Rs55,769.458 million against preceding week’s figure of Rs54,269.458 million, showing a rise of Rs1,500.0 million. The current week’s figure is larger by Rs605.622 million over last year’s corresponding figure of Rs55,163.836 million.

There was an inflow of Rs2,815.481 million to the industrial sector during the week under review, depicting a decline of Rs17.576 million over previous week’s Rs2,833.057 million. When compared to last year’s corresponding figure of Rs3,415.127 million, the current week’s figure is lower by Rs599.646 million.

The export sector received Rs56,774.616 million against previous week’s figure of Rs56,080.773 million, showing a rise of Rs693.843 million. Current week’s figure was smaller by Rs2,773.135 million over last year’s corresponding figure of Rs59,547.751 million.

According to the weekly statement of position of scheduled banks for the week ended June 28, 2003, the sum of demand and time liabilities continued to rise in the week under review. The sum total stood at Rs1,753,313 million against preceding week’s Rs1,719,191 million, showing a rise of Rs34,122 million. As compared to the total deposits of Rs1,482,557 million in the corresponding period last year, current week’s deposits were higher by Rs270,756 million.

During the week under review, both demand and time deposits rose. Demand deposits rose to Rs824,056 million, showing a rise of Rs21,282 million over previous week’s Rs802,774 million. It was also higher against last year’s corresponding figure of Rs666,624 million by Rs157,432 million.

In the current week, time deposits were higher both over preceding week and against the corresponding week last year. At Rs929,257 million, it was larger by Rs12,840 million over previous week’s Rs916,417 million and by Rs113,324 million, over last year’s corresponding figure of Rs815,933 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities increased in the current week. At Rs137,966 million it was larger by Rs2,311 million over preceding week’s Rs135,655 million. Compared to last year’s corresponding figure of Rs135,557 million, the current week’s figure is smaller by Rs2,409 million.

Scheduled banks borrowings from banks abroad stood at Rs22,473 million in the current week, as against Rs18,133 million a week ago, showing a rise of Rs4,340 million. It was larger by Rs9,831 million over last year’s corresponding figure of Rs12,642 million.