The next OMO compelled the banks to accept whatever the rates were being offered. The SBP raised Rs11.150 billion for nine days at a rate of 8.25 per cent per annum.
On June 15, the SBP sold Rs12.3 billion in a four day repo operation at 8.25 per cent to mop up funds from the money market.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended June 3, 2006, both notes in circulation and those issued decreased during the week. Notes in circulation stood at Rs793,533.429 million against earlier week’s figure of Rs794,210.379 million, a fall of Rs676.95 million. When compared to the corresponding week a year ago when it was Rs724,107.101 million, the current week’s figure is higher by Rs69,426.328 million.
Total notes issued also decreased in the current week over preceding week’s level. At Rs793,702.610 million it was lower by Rs638.433 million over the figure of Rs794,341.043 million recorded a week earlier. In the corresponding week last year it amounted to Rs724,256.087 million, which shows current week’s figure to be higher by Rs69,446.523 million over last year’s corresponding figure.
Approved foreign exchange declined in the week to Rs540,773.422 million or by Rs6,333.378 million over preceding week’s figure of Rs547,106.800 million. When compared to the corresponding week a year ago, when the figure was Rs473,264.827 million, the current week’s figure is larger by Rs67,508.595 million.
Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs124,766.549 million over preceding week’s figure of Rs120,549.907 million, showing a rise of Rs4,216.642 million. Compared to last year’s corresponding figure of Rs131,238.287 million, the current week’s figure is lower by Rs6,471.738 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 Rs61,643.982 million, similar to preceding week’s figure. The current week’s figure is larger by Rs2,072.545 million over last year’s corresponding figure of Rs59,571.437 million.
There was an inflow of Rs6,550.912 million to the industrial sector during the week under review, a rise of Rs213.601 million against preceding week’s figure of Rs6,337.311 million. When compared to last year’s corresponding figure of Rs1,362.170 million, the current week’s figure is higher by Rs5,188.742 million.
The export sector received Rs108,768.943 million against previous week’s figure of Rs108,989.968 million, a fall of Rs221.025 million. Current week’s figure was smaller by Rs1,078.947 million over last year’s corresponding figure of Rs109,847.890 million.
According to the weekly statement of position of all scheduled banks for the week ended June 3, 2006, deposits and other accounts of the scheduled banks stood at Rs2,755.169 billion, rising by Rs21.2 billion over preceding week’s figure of Rs2,733.969 billon. Commercial banks deposits showed a rise of Rs21.169 billion over the week to Rs2,743.333 billion against preceding week’s Rs2,722.164 billion, and of specialized banks it fell by Rs0.03 billion to Rs11.835 billion, over previous week’s Rs11.805 billion.
Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs352.383 billion over preceding week’s figure of Rs346.751 billion, a rise of Rs5.632 billion. This was primarily due to a rise in the borrowings by commercial banks, which rose to Rs265.780 billion against previous week’s Rs260.148 billion, or by Rs5.632 billion, while borrowings by specialised banks stood at Rs86.604 billion, unchanged from the preceding week.
Gross advances stood at Rs2,116.290 billion in the week under review, a rise of Rs1.241 million over preceding week’s figure of Rs2,115.049 billion. Advances by commercial banks rose to Rs2,025.878 billion against earlier week’s figure of Rs2,024.821 billion, larger by Rs1.057 billion, and of specialized banks it stood at Rs90.412 billion.
Investments of all scheduled banks increased in the week by Rs2.031 billion to Rs823.430 billion against preceding week’s figure of Rs821.399 billion. Commercial banks investment level increased to Rs802.214 billion, from earlier week’s Rs800.621 billion, larger by Rs1.593 billion, while of specialized banks it stood at Rs21.216 billion against previous week’s Rs20.778 billion, a decline of Rs0.438 billion.