THE State Bank of Pakistan (SBP) on February 28, 2002 pumped in Rs2.8 billion into the interbank market. It injected through reverse repos of treasury bills Rs2 billion for two weeks at 6.25 per cent and Rs800 million for four weeks at Rs6.50 per cent.

Bank have been facing liquidity shortage because of large withdrawals from their deposits just before Eid. This was the third injection made within a week.

In the two earlier open market operations, the SBP had pumped in through reverse repo of T-bills, Rs1.5 billion for two weeks and Rs270 million for four weeks at the same rates. The central bank had also injected Rs1 billion for four weeks at 6.50 per cent. On that day, the SBP had also siphoned off Rs5.2 billion from the banking system through two-week repo of T-bills at 5.75 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended February 16, 2002, both notes in circulation and those issued continued the upward trend in the week under review. Notes in circulation stood at Rs. 462,208.321 million against preceding weeks Rs461,087.582 million, showing a rise of Rs1,120.739 million. When compared to the corresponding week a year ago when it was Rs405,800.713 million the current week’s figure is higher by Rs56,407.608 million.

Total notes issued also depicted a rise in the current week. At Rs462,369.058 million it was larger by Rs. 1,121.488 million over a week earlier figure of Rs461.247.570 million. In the corresponding week last year it amounted to Rs405,998.335 million, which shows current week’s figure to be higher by Rs 56,370.723 million over last year’s figure.

Approved foreign exchange declined further in the week under review. It stood at Rs150,312.559 million, showing a fall of Rs 557.701 million over previous week’s Rs150,870.260 million. When compared to last year’s corresponding figure of Rs45,464.294 million, the current week’s figure is substantially higher by Rs 104,848.265 million.

Balances held outside Pakistan in approved foreign exchange, recorded a further rise in the week under review. It stood at Rs 73,026.349 million over preceding week’s figure of Rs67,215,526 million, showing a rise of Rs5,810.823 million. Compared to last year’s corresponding figure of Rs17,785.330 million, the current week’s figure is larger by Rs55,241.019 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 Rs54,770.441 million, against preceding week’s figure of Rs54,933.441 million, showing a fall of Rs163 million. The current week’s figure is larger by Rs704.468 million over last year’s corresponding figure of Rs54,065.973 million.

There was an inflow of Rs3,683.518 million to the industrial sector during the week under review, depicting a decline of Rs. 4.083 million over previous week’s Rs3,687.601. Compared to last year’s corresponding figure of Rs4,562.533 million, the current week’s figure is lower by Rs879.015 million.

The export sector received Rs50,952.032 million over previous week’s figure of Rs49,654.576 million, showing a rise of Rs1,297.456 million. Current week’s figure was lower by Rs27,168.941 million over last year’s corresponding figure of Rs78,120.973 million.

According to the weekly statement of position of scheduled banks for the week ended February, 09, the sum of demand and time liabilities declined in the week under review. The sum total stood at Rs1,368,276 million against preceding week’s Rs1,376,265 million, showing a fall of Rs7,989 million. As compared to the total deposits of Rs1,223,971 million in the corresponding period last year, current week’s deposits were higher by Rs144,305 million.

During the week under review, demand deposits fell to Rs603,918 million, or by Rs1,713 million over previous week’s Rs605,631 million, but was higher against last year’s corresponding figure of Rs524,719 million by Rs79,199 million.

In the current week, time deposits were also lower over the preceding week, but higher against the corresponding week last year. At Rs764,358 million it was lower by Rs6,276 million over previous week’s Rs770,634 million, but larger by Rs65,106 million, over last year’s corresponding figure of Rs699,252 million.

Scheduled banks borrowings from banks abroad stood at Rs. 15,233 million in the current week, as against Rs. 14,769 million a week ago,showing a rise of Rs. 464 million. It was lower by Rs 867 million over last year’s corresponding figure of Rs16,100 million. Money at call and short notice in Pakistan showed a rise in the week under review. It stood at Rs50,164 million, showing a decline of Rs633 million over preceding week’s Rs50,797 million. When compared to last year’s corresponding figure of Rs41,644 million, the current figure is larger by Rs8,520 million.

Scheduled banks advances, including bills purchased and discounted, also fell in the week under review. At Rs. 985,537 million it was lower by Rs728 million over preceding week’s Rs. 986,265 million. Compared tot he corresponding figure a year ago, when advances were to the tune of Rs928,422 million, the current week’s advances are higher by Rs57,115 million.