On November 1, the State Bank of Pakistan sucked in Rs4.15 billion, through the sale of Treasury bills for one-week repo at 2.15 per cent. The open market operation had generated bids worth Rs8.35 billion. The central bank has been draining out liquidity from the banking system through the OMOs after a large inflow of Rs85 billion through maturities of Treasury bills inundated the market a week earlier.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended October 23, 2004, both notes in circulation and those issued increased in the week. Notes in circulation stood at Rs672,257.895 million against earlier week's figure of Rs666,481.539 million, a rise of Rs5,776.356 million. When compared to the corresponding week a year ago when it was Rs568,395.352 million, the current week's figure is higher by Rs103,862.543 million.

Total notes issued also recorded a rise in the current week over preceding week's level. At Rs672,501.333 million it was larger by Rs5,876.766 million over the figure of Rs666,624.567 million recorded a week earlier. In the corresponding week last year it amounted to Rs568,553.106 million, which shows current week's figure to be higher by Rs103,948.227 million over last year's corresponding figure.

Approved foreign exchange increased in the week, rising to Rs503,032.767 million or by Rs1,950.166 million over preceding week's figure of Rs501,082.601 million. When compared to the corresponding week a year ago, when the figure was Rs501,962.476 million, the current week's figure was higher by Rs1,070.291 million.

Balances held outside Pakistan in approved foreign exchange rose in the week under review. It stood at Rs115,844.233 million over preceding week's figure of Rs115,600.822 million, a rise of Rs243.411 million. Compared to last year's corresponding figure of Rs86,852.763 million, the current week's figure is substantially higher by Rs28,991.47 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 Rs58,405.281 million, similar to preceding week's figure. The current week's figure is larger by Rs3,457.386 million over last year's corresponding figure of Rs54,947.895 million.

There was an inflow of Rs2,186.484 million to the industrial sector during the week under review, against preceding week's figure of Rs2,188.830 million, a decline of Rs2.346 million. When compared to last year's corresponding figure of Rs2,693.269 million, the current week's figure is lower by Rs506.785 million.

The export sector received Rs94,943.802 million against previous week's figure of Rs93,973.942 million, a rise of Rs969.86 million. Current week's figure was larger by Rs28,560.519 million over last year's corresponding figure of Rs66,383.283 million.

According to the weekly statement of position of scheduled banks for the week ended October 23, 2004, the sum of demand and time liabilities showed an increase in the week under review. The sum total stood at Rs2,144,905 million against preceding week's Rs2,122,464 million, a rise of Rs22,441 million. As compared to the total deposits of Rs1,787,827 million in the corresponding period last year, current week's deposits were higher by Rs357,078 million.

During the week under review, demand deposits stood at Rs1,107,899 million, a fall of Rs72,766 million over previous week's Rs1,181,665 million. It was however, higher against last year's corresponding figure of Rs957,909 million by Rs149,990 million.

Time deposits however, rose in the current week. At Rs1,037,006 million it was larger by Rs96,207 million over previous week's Rs940,799 million and by Rs207,088 million over last year's corresponding figure of Rs829,918 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities increased in the current week. At Rs168,068 million it was larger by Rs998 million over preceding week's Rs167,070 million. Compared to last year's corresponding figure of Rs143,320 million, the current week's figure is higher by Rs24,748 million.

Scheduled banks borrowings from banks abroad stood at Rs6,073 million in the current week, as against Rs5,935 million a week ago, a rise of Rs138 million. It was smaller by Rs13,155 million over last year's corresponding figure of Rs19,228 million.

Money at call and short notice in Pakistan increased in the week over previous week's figure. It stood at Rs37,511 million, a rise of Rs3,995 million over preceding week's Rs33,516 million. When compared to last year's corresponding figure of Rs22,129 million, the current week's figure is higher by Rs15,382 million.

Scheduled banks' advances including bills purchased and discounted rose in the week under review. At Rs1,449,880 million it was larger by Rs15,596 million over preceding week's Rs1,434,284 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,097,712 million, the current week's advances are higher by Rs352,168 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 Rs690,437 million, a decline of Rs15,050 million over previous week's Rs705,487 million. Compared to last year's corresponding figure of Rs771,080 million, the current week's investment is smaller by Rs80,643 million.

Total assets of scheduled banks further increased in the week under review. These stood at Rs3,078,777 million against previous week's Rs3,037,352 million, a rise of Rs41,425 million. Compared to last year's corresponding figure of Rs2,566,575 million it shows a rise of Rs512,202 million.