The auction had generated Rs22.7 billion worth of demand for 6-month bills. The Central Bank action is aimed at containing rising inflation. According to the Statement of Affairs of the State Bank of Pakistan, for the week ended May 21, 2005, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs726,885.783 million against earlier week’s figure of Rs729,165.584 million, a fall of Rs2,279.801 million. When compared to the corresponding week a year ago when it was Rs623,127.381 million, the current week’s figure is higher by Rs103,758.402 million.
Total notes issued also fell in the current week over preceding week’s level. At Rs727,041.246 million it was smaller by Rs2,295.741 million over the figure of Rs729,336.987 million recorded a week earlier. In the corresponding week last year it amounted to Rs623,253.301 million, which shows current week’s figure to be higher by Rs103,787.945 million over last year’s corresponding figure.
Approved foreign exchange fell in the week to Rs492,726.544 million or by Rs441.227 million over preceding week’s figure of Rs493,167.771 million. When compared to the corresponding week a year ago, when the figure was Rs475,099.437 million, the current week’s figure was higher by Rs17,627.107 million.
Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs127,869.165 million over preceding week’s figure of Rs129,384.307 million, a fall of Rs1,515.142 million. Compared to last year’s corresponding figure of Rs167,549.132 million, the current week’s figure is smaller by Rs39,679.967 million.
Loans and advances of scheduled banks to the three sectors – agricultural, industrial and export showed a mixed trend in the week under review. The agricultural sector received Rs59,571.437 million, similar to preceding week’s figure. The current week’s figure is larger by Rs3,515.898 million over last year’s corresponding figure of Rs56,055.539 million.
There was an inflow of Rs1,338.274 million to the industrial sector during the week under review, similar to preceding week’s figure. When compared to last year’s corresponding figure of Rs2,363.429 million, the current week’s figure is lower by Rs1,025.155 million.
The export sector received Rs111,224.024 million against previous week’s figure of Rs111,279.355 million, a fall of Rs55.331 million. Current week’s figure was larger by Rs25,796.856 million over last year’s corresponding figure of Rs85,427.168 million.
According to the weekly statement of position of scheduled banks for the week ended May 14, 2005, the sum of demand and time liabilities rose in the week under review. The sum total stood at Rs2,395,891 million against preceding week’s Rs2,380,971 million, a rise of Rs14,920 million. As compared to the total deposits of Rs2,000,429 million in the corresponding period last year, current weeks deposits were higher by Rs395,462 million.
During the week under review, demand deposits stood at Rs1,216,921 million, a rise of Rs10,820 million over previous week’s Rs1,206,101 million. It was also higher against last year’s corresponding figure of Rs999,078 million by Rs217,843 million.
Time deposits also rose in the current week. At Rs1,178,970 million it was higher by Rs4,100 million over previous week’s Rs1,174,870 million and by Rs177,619 million over last year’s corresponding figure of Rs1,001,351 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs188,908 million it was higher by Rs759 million over preceding week’s Rs188,149 million. Compared to last year’s corresponding figure of Rs156,676 million, the current week’s figure is higher by Rs32,232 million.
Scheduled banks borrowings from banks abroad stood at Rs4,841 million in the current week, as against Rs5,652 million a week ago, a fall of Rs811 million. It was however, higher by Rs1,781 million over last year’s corresponding figure of Rs3,060 million.
Money at call and short notice in Pakistan fell in the week under review as against previous week’s figure. It stood at Rs23,136 million, a fall of Rs4,780 million over preceding week’s Rs27,916 million. When compared to last year’s corresponding figure of Rs28,348 million, the current week’s figure is smaller by Rs5,212 million.
Scheduled banks’ advances including bills purchased and discounted increased in the week under review. At Rs1,741,682 million it was higher by Rs13,110 million over preceding week’s Rs1,728,572 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,266,511 million, the current week’s advances are higher by Rs475,171 million.
Scheduled banks investment in central government securities, Treasury bills and other approved securities showed a fall in the current week when compared to preceding week’s level. Such investments amounted to Rs649,439 million, a fall of Rs20,393 million over previous week’s Rs669,832 million. Compared to last year’s corresponding figure of Rs767,280 million, the current week’s investment is smaller by Rs117,841 million.