The tight situation is attributable to the cautious policy of SBP which wants to hold a tight grip over inflation.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended March 8, 2008, both notes in circulation and those issued increased in the week. Notes in circulation stood at Rs1,062.024 billion against earlier week’s figure of Rs1,040.150 billion, a rise of Rs21.874 billion. When compared to the corresponding week a year ago when it was Rs897.867 billion, the current week’s figure is higher by Rs164.157 billion.
Total notes issued also increased in the current week over preceding week’s level. At Rs1,062.156 billion it was larger by Rs21.795 billion over the figure of Rs1,040.361 billion recorded a week earlier. In the corresponding week last year it amounted to Rs898.059 billion, which shows current week’s figure to be higher by Rs164.097 billion over last year’s corresponding figure.
Approved foreign exchange decreased in the week to Rs595.861 billion or by Rs27.157 billion over preceding week’s figure of Rs623.018 billion. When compared to the corresponding week a year ago, when the figure was Rs554.616 billion, the current week’s figure is higher by Rs41.245 billion.
Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs167.023 billion over preceding week’s figure of Rs131.695 billion, a rise of Rs35.328 billion. Compared to last year’s corresponding figure of Rs154.669 billion, the current week’s figure is larger by Rs12.354 billion.
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 Rs49.777 billion, similar to preceding week’s figure. The current week’s figure is smaller by Rs10.406 billion over last year’s corresponding figure of Rs60.183 billion.
There was an inflow of Rs40.982 billion to the industrial sector during the week under review, a rise of Rs0.086 billion against preceding week’s figure of Rs41.068 billion. When compared to last year’s corresponding figure of Rs41.798 billion, the current week’s figure is higher by Rs0.816 billion.
The export sector received Rs94.213 billion against previous week’s figure of Rs91.505 billion, higher by Rs2.708 billion. Current week’s figure was smaller by Rs39.0 billion over last year’s corresponding figure of Rs133.213 billion.
According to the weekly statement of position of all scheduled banks for the week ended March 8, 2008, deposits and other accounts of the scheduled banks stood at Rs3,618.346 billion, higher by Rs26.485 billion over preceding week’s figure of Rs3,591.861 billion. Commercial banks deposits showed an increase of Rs26.13 billion over the week to Rs3,605.545 billion, against preceding week’s Rs3,579.415 billion. Specialized banks deposits stood at Rs12.801 billion, against preceding week’s Rs12.447 billion, a rise of Rs0.354 billion.
Borrowings by all scheduled banks decreased further during the week over preceding week’s figure. It fell to Rs393.974 billion over preceding week’s figure of Rs447.042 billion, a fall of Rs53.068 billion. This was primarily due to a fall in the borrowings by commercial banks, which fell to Rs313.095 billion against previous week’s Rs366.193 billion, or by Rs53.098 billion. Borrowings by specialized banks stood at Rs80.880 billion, against preceding week’s figure of Rs80.849 billion.
Gross advances stood at Rs2,756.459 billion in the week under review, an increase of Rs21.817 billion over preceding week’s figure of Rs2,734.642 billion. Advances by commercial banks rose to Rs2,659.862 billion against earlier week’s figure of Rs2,641.403 billion, or by Rs18.459 billion. Advances of specialized banks stood at Rs96.598 billion, smaller by Rs3.359 billion over earlier week’s figure of Rs93.239 billion.
Investments of all scheduled banks decreased in the week by Rs9.689 billion to Rs1,153.766 billion against preceding week’s figure of Rs1,163.455 billion. Commercial banks investment fell to Rs1,140.200 billion, from earlier week’s Rs1,150.128 billion, or by Rs9.928 billion. Specialized banks investment stood at Rs13.566 billion, against preceding week’s Rs13.327 billion, smaller by Rs0.239 billion.
Cash and balances with treasury banks of all scheduled banks increased by Rs6.311 billion during the week to stand at Rs360.656 billion against earlier week’s Rs354.345 billion. The figure for commercial banks stood at Rs358.139 billion against preceding week’s figure of Rs351.542 billion, a rise of Rs6.597 billion, while of specialized banks it stood at Rs2.517 billion over previous week’s Rs2.803 billion.
Total assets of scheduled banks stood at Rs4,838.873 billion, smaller by Rs23.516 billion, over preceding week’s figure of Rs4,862.389 billion. Meanwhile, commercial banks assets stood at Rs4,720.840 billion, lower by Rs23.495 billion over previous week’s figure of Rs4,744.335 billion.