On August 6, the State Bank of Pakistan sold Rs51 billion worth of T-bills. The State Bank raised Rs10.22 billion through the sale of three-month bills at 0.99 per cent, while it raised Rs41.12 billion one year paper at 1.39 per cent. The money was mopped up from an excessively liquid inter-bank market.

The weighted average yield on three-month and one year Treasury bills have fallen from 5.81 per cent and 6.27 per cent respectively in July 2002.

Earlier in the week, the SBP had bought Rs8 billion in an OMO through sale of two week Treasury bills. These bids were accepted at an annual yield of 0.74 per cent.

According to the weekly statement of position of scheduled banks for the week ended July 26, 2003, the sum of demand and time liabilities continued to increase in the week under review.

The sum total stood at Rs1,761,092 million against the preceding week’s Rs1,753,600 million, showing a rise of Rs7,492 million. As compared to the total deposits of Rs1,497,749 million in the corresponding period last year, current week’s deposits were higher by Rs263,343 million.

During the week under review, both demand and time deposits rose. Demand deposits increased to Rs840,006 million, a rise of Rs7,283 million over previous week’s Rs832,723 million. It was also higher against last year’s corresponding figure of Rs664,138 million by Rs175,868 million.

In the current week, time deposits were higher over preceding week’s figure. At Rs921,086 million, it was larger by Rs209 million over previous week’s Rs920,877 million and by Rs87,475 million, over last year’s corresponding figure of Rs833,611 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities decreased further in the current week. At Rs132,653 million it was smaller by Rs3,701 million over preceding week’s Rs136,354 million. Compared to last year’s corresponding figure of Rs135,100 million, the current week’s figure is smaller by Rs2,447 million.

Scheduled banks borrowings from the banks abroad stood at Rs20,879 million in the current week, as against Rs20,505 million a week ago, showing a rise of Rs374 million. It was also larger by Rs6,311 million over last year’s corresponding figure of Rs14,568 million.

Money at call and short notice in Pakistan declined in the week under review. It stood at Rs23,193 million, a fall of Rs3,411 million over preceding week’s Rs26,604 million. When compared to last year’s corresponding figure of Rs36,829 million, the current figure is lower by Rs13,636 million.

Scheduled banks advances including bills purchased and discounted declined in the week under review.

At Rs1,042,822 million it was smaller by Rs221 million over preceding week’s Rs1,043,043 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs948,514 million, the current week’s advances are higher by Rs94,308 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities increased in the current week when compared to preceding week’s level. Such investments amounted to Rs764,572 million, a rise of Rs178 million over previous week’s Rs764,394 million. Compared to last year’s corresponding figure of Rs536,300 million, the current week’s investment is higher by Rs228,272 million.

Total assets of scheduled banks increased in the week under review. These stood at Rs2,522,573 million against previous week’s Rs2,517,246 million, a rise of Rs5,327 million. Compared to last year’s corresponding figure of Rs2,350,622 million it shows a rise of Rs171,951 million.