On February 23, in an open-market operation, the State Bank of Pakistan mopped up Rs22 billion from a fairly liquid interbank money market. It siphoned off Rs9.5 billion through one week repo of the Treasury Bills at 0.95 per cent and Rs12.5 billion through four-week repo at 1.15 per cent.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended February 21, 2004, both notes in circulation and those issued declined further in the week under review. Notes in circulation stood at Rs620,200.

108 million against earlier week's figure of Rs631,593.991 million, showing a fall of Rs11,393.883 million. When compared to the corresponding week a year ago when it was Rs534,486.423 million, the current week's figure is higher by Rs85,713.685 million.

Total notes issued also recorded a fall in the current week over preceding week's level. At Rs620,410.187 million it was smaller by Rs11,404.674 million over the figure of Rs631,814.861 million recorded a week earlier. In the corresponding week last year it amounted to Rs534,668.194 million, which shows current week's figure to be higher by Rs85,741.993 million over last year's corresponding figure.

Approved foreign exchange also declined in the week, falling to Rs494,064.613 million or by Rs39,314.08 million over preceding week's figure of Rs533,378.693 million. When compared to the corresponding week a year ago, when the figure was Rs478,412.502 million, the current week's figure was higher by Rs15,652.111 million.

Balances held outside Pakistan in approved foreign exchange increased in the week under review. It stood at Rs142,882.235 million over preceding week's figure of Rs116,267.170 million, showing an increase of Rs26,615.065 million. Compared to last year's corresponding figure of Rs32,631.629 million, the current week's figure is substantially higher by Rs110,250.606 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 Rs55,703.139 million, similar to preceding week's figure. The current week's figure is larger by Rs646.37 million over last year's corresponding figure of Rs55,056.769 million.

There was an inflow of Rs2,521.643 million to the industrial sector during the week under review, depicting a decline of Rs4.949 million over previous week's Rs2,526.592 million. When compared to last year's corresponding figure of Rs2,971.717 million, the current week's figure is lower by Rs450.074 million.

The export sector received Rs77,822.242 million against previous week's figure of Rs78,210.801 million, showing a fall of Rs388.559 million. Current week's figure was larger by Rs32,864.045 million over last year's corresponding figure of Rs44,958.197 million.

According to the weekly statement of position of scheduled banks for the week ended February 14, 2004, the sum of demand and time liabilities increased in the week under review as both type of deposits rose. The sum total stood at Rs1,906,631 million against preceding week's Rs1,891,632 million, showing a rise of Rs14,999 million. As compared to the total deposits of Rs1,610,294 million in the corresponding period last year, current week's deposits were higher by Rs296,337 million.

During the week under review, demand deposits stood at Rs949,032 million, a rise of Rs14,002 million over previous week's Rs935,030 million. It was also higher against last year's corresponding figure of Rs735,320 million by Rs213,712 million.

In the current week, time deposits also rose over preceding week's figure. At Rs957,599 million it was larger by Rs997 million over previous week's Rs956,602 million and by Rs82,625 million, over last year's corresponding figure of Rs874,974 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities declined in the current week. At Rs152,114 million it was smaller by Rs1,024 million over preceding week's Rs153,138 million. Compared to last year's corresponding figure of Rs135,007 million, the current week's figure is higher by Rs17,107 million.

Scheduled banks borrowings from banks abroad stood at Rs21,228 million in the current week, as against Rs21,070 million a week ago, showing a rise of Rs158 million. It was also larger by Rs6,744 million over last year's corresponding figure of Rs14,484 million.