THE STATE Bank of Pakistan (SBP) on January 30, pumped in Rs8.9 billion into the interbank market through the Treasury Bills repo at its open market operation.
The SBP said it siphoned off Rs5.1 billion through four-week repo at 4.25 per cent and Rs3.8 billion through eight-week repo at 5 per cent.
The SBP kept the coupon rates on three-year and five-year bonds unchanged at 10.5 and 11 per cent, respectively when the bonds were auctioned on January 26. The SBP had last slashed the coupon rates on three-year and five-year bonds from 11.80 per cent to 10.5 per cent and from 12.20 to 11 per cent on November 6, 2001. The slashing was made in the wake of a 2 per cent cut in discount rate announced on October 20, 2001. At that time the SBP had also lowered the coupon rate on 10-year bonds from 13 to 12 per cent. Central bankers say this rate would be further cut in February when the 10-year bonds would come up for auction.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended January 19, 2002, both notes in circulation and those issued fell. Notes in circulation stood at Rs458,082.230 million against preceding week’s Rs459,243.395 million, showing a fall of Rs1,161.165 million. When compared to the corresponding week a year ago when it was Rs409,272.201 million, the current week’s figure is higher by Rs48,801.029 million.
Total notes issued also showed a fall in the current week. At Rs458,272.262 million it was smaller by R1,115.085 million over a week earlier figure of Rs459,387.347 million. In the corresponding week last year it amounted to R409,404.116 million, which shows current week’s figure to be higher by Rs48,868.146 million over last year’s figure.
Approved foreign exchange rose in the week under review. It stood at Rs142,276.356 million, showing an increase of Rs6,275.531 million over previous week’s Rs136,018.825 million. When compared to last year’s corresponding figure of Rs45,685.379 million, the current week’s figure is substantially higher by Rs96,590.977 million.
Balances held outside Pakistan in approved foreign exchange, fell in the week under review. It stood at Rs70,374.506 million over preceding week’s figure of Rs75,064.987 million, showing a fall of Rs4,690.481 million. Compared to last year’s corresponding figure of Rs18,738.368 million, the current week’s figure is larger by Rs51,636.138 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 Rs53,728.118 million, similar to preceding week’s figure. The current week’s figure is smaller by Rs1,122.855 million over last year’s corresponding figure of Rs54,850.973 million.
There was an inflow of Rs3,737.503 million in the industrial sector during the week under review, depicting a decline of Rs16.540 million over previous week’s Rs3,754.043 million. Compared to last year’s corresponding figure of Rs4,635.180 million, the current week’s figure is lower by Rs897.677 million.
The export sector received Rs52,024.622 million over previous week’s figure of Rs46,547.809 million, showing a rise of Rs5,476.813 million. Current week’s figure was lower by Rs27,063.732 million over last year’s corresponding figure of Rs79,088.354 million.
According to the weekly statement of position of scheduled banks for the week ended January 19, 2002, the sum of demand and time liabilities rose. The sum total stood at Rs1,358,957 million against preceding week’s Rs1,355,997 million, showing an increase of Rs2,960 million. As compared to the total deposits of Rs1,207,640 million in the corresponding period last year, current week’s deposits were higher by Rs151,317 million.
During the week under review, demand deposits rose to Rs596,675 million, or by Rs1,330 million over previous week’s Rs595,345 million, and was also higher against last year’s corresponding figure of Rs520,562 million by Rs76,113 million.
In the current week, time deposits were higher over the preceding week, and against the corresponding week last year. At Rs762,282 million it was higher by Rs1,630 million over previous week’s Rs760,652 million, and by Rs75,204 million, over last year’s corresponding figure of Rs687,078 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities showed an upward trend in the current week. At Rs120,611 million it was higher by Rs1,653 million over preceding week’s Rs118,958 million. Compared to last year’s corresponding figure of Rs144,759 million, the current week’s figure is lower by Rs24,148 million.