On December 9, the State Bank of Pakistan conducted an open market operation to suck in Rs27.45 billion from the inter-bank market. It mopped up Rs26.45 billion through one-week repo of T-bills at 2.45 per cent and Rs1 billion through two-week repo at 2.40 per cent.

Earlier on December 8, the central bank had scrapped a six-month T-bills auction to avoid a sharp increase in the yield. The auction had generated Rs8.115 billion demand for the bills against the pre-fixed sale target of Rs30 billion.

According to the statement of affairs of the central bank, for the week ended December 4, 2004, both notes in circulation and those issued rose in the week. Notes in circulation stood at Rs705,815.814 million against earlier week's figure of Rs701,448.763 million, a rise of Rs4,367.051 million. When compared to the corresponding week a year ago when it was Rs621,125.432 million, the current week's figure is higher by Rs84,690.382 million.

Total notes issued also rose in the current week over preceding week's level. At Rs705,980.878 million it was larger by Rs4,398.724 million over the figure of Rs701,582.154 million recorded a week earlier.

In the corresponding week last year it amounted to Rs621,275.467 million, which shows current week's figure to be higher by Rs84,705.411 million over last year's corresponding figure.

Approved foreign exchange declined in the week, falling to Rs435,449.273 million or by Rs22,423.449 million over preceding week's figure of Rs457,872.722 million. When compared to the corresponding week a year ago, when the figure was Rs509,787.455 million, the current week's figure was smaller by Rs74,338.182 million.

Balances held outside Pakistan in approved foreign exchange rose in the week under review. It stood at Rs126,160.340 million over preceding week's figure of Rs125,499.804 million, a rise of Rs660.536 million. Compared to last year's corresponding figure of Rs97,513.965 million, the current week's figure is substantially higher by Rs28,646.375 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 Rs58,386.694 million similar to preceding week's figure. The current week's figure is larger by Rs3,292.79 million over last year's corresponding figure of Rs55,093.904 million.

There was an inflow of Rs1,184.505 million to the industrial sector during the week under review, against preceding week's figure of Rs1,185.884 million, showing a fall of Rs1.379 million. When compared to last year's corresponding figure of Rs2,666.445 million, the current week's figure is lower by Rs1,481.94 million.

The export sector received Rs98,368.901 million against previous week's figure of Rs97,015.478 million, a rise of Rs1,353.423 million. Current week's figure was larger by Rs24,919.896 million over last year's corresponding figure of Rs73,449.005 million.

According to the weekly statement of position of scheduled banks for the week ended November 27, 2004, the sum of demand and time liabilities increased in the week under review. The sum total stood at Rs2,188,411 million against preceding week's Rs2,168,088 million, a rise of Rs20323.8 million.

During the week under review, demand deposits stood at Rs1,114,394 million, a rise of Rs9,338 million over previous week's Rs1,105,056 million. Time deposits rose in the current week. At Rs1,074,017 million it was larger by Rs10,985 million over previous week's Rs1,063,032 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs170,340 million it was higher by Rs1,096 million over preceding week's Rs169,244 million.

Scheduled banks borrowings from banks abroad stood at Rs6,073 million in the current week, as against Rs10,888 million a week ago, a fall of Rs.4,815 million. Money at call and short notice in Pakistan declined in the week over previous week's figure. It stood at Rs33,220 million, a fall of Rs289 million over preceding week's Rs33,509 million.

Scheduled banks' advances including bills purchased and discounted rose in the week under review. At Rs1,515,732 million it was larger by Rs17,402 million over preceding week's Rs1,498,330 million.

Scheduled banks investment in central government securities, Treasury bills and other approved securities showed a fall in the current week when compared to preceding week's level. Such investments amounted to Rs644,368 million, a decline of Rs6 million over previous week's Rs644,374 million.

Total assets of scheduled banks increased in the week under review. These stood at Rs3,123,430 million against previous week's Rs3,103,955 million, a rise of Rs19,475 million.