ON NOVEMBER 6, the State Bank of Pakistan cut the fixed coupon rates on long-term Pakistan Investment Bonds, as a follow-up of the 2 per cent cut in its discount rate announced on October 20,2001.

The Central Bank slashed the coupon rate from 11.80 to 10.50 per cent on three-year bonds and from 12.20 to 11 per cent on five-year bonds. It also cut the coupon rate from 13 per cent to 12 per cent on 10-year bonds. The SBP has so far slashed the discount rate by 4 per cent to steer the economy out from the slump.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended November 3, 2001, both notes in circulation and those issued continued to show an increase in the week. The notes in circulation stood at Rs425,590.956 million against the preceding week’s Rs418,675.883 million, showing an increase of Rs6,915.073 million. When compared to the corresponding week a year ago, when it was Rs378,944.732 million, the current week’s figure is higher by Rs46,646.224 million.

Total notes issued also showed a rise in the current week. At Rs425,805.914 million it was higher by Rs6,895.21 million over a week earlier figure of Rs418,910.704 million. In the corresponding week last year it amounted to Rs379,115.053 million, which shows an increase of Rs46,690.861 million over the year.

The approved foreign exchange, continued to show an upward trend in the week under review. It stood at Rs124,084.572 million, showing a rise of Rs1,304.546 million over previous week’s Rs122,780.026 million. When compared to last year’s corresponding figure of Rs44,508.004 million, the current week’s figure is substantially higher by Rs79,576.568 million.

Balances held outside Pakistan in approved foreign exchange, continued to rise in the week under review. It stood at Rs23,530.042 million over preceding week’s figure of Rs21,152.685 million, showing an increase of Rs2,377.357 million. Compared to last year’s corresponding figure of Rs16,891.303 million, the current week’s figure is larger by Rs6,638.739 million.

Loans and advances of the scheduled banks to three sectors, agricultural, industrial and export showed a mixed picture in the week under review. The agricultural sector received Rs54,29l.790 million, lower by Rs21.91 million over preceding week’s figure of Rs54313,70 million. The current week’s figure is larger by Rs580.507 million over last year’s corresponding figure of Rs53,711.283 million.

There was an inflow of Rs3,949.681 million in the industrial sector during the week under review, depicting a decrease of Rs3.971 million over previous week’s Rs3,953.652 million. Compared to last year’s corresponding figure of Rs4,876.800 million, the current week’s figure is lower by Rs927.119 million.

The export sector received Rs54,658.528 million over previous week’s Rs56,088.769 million, showing a fall of Rs1,430.241 million. Current week’s figure was lower by Rs22,555.27 million over last year’s corresponding figure of Rs77,213.798 million.

According to the weekly statement of position of scheduled banks for the week ended October 27, 2001 the sum of demand and time liabilities showed a rise due to an increase in both demand and time deposits in the week under review. The sum total stood at Rs1,296,403 million against preceding week’s Rs1,288,042 million, showing an increase of Rs8,361 million. As compared to the total deposits of Rs1,198,840 million in the corresponding period last year, current week’s deposits were higher by Rs97,563 million.

During the week under review, the demand deposits rose to Rs563,524 million, or by Rs3,404 million over previous week’s Rs560,120 million, and was also higher against last year’s corresponding figure of Rs502,396 million by Rs61,128 million.

In the current week, time deposits were higher over the preceding week, and against the corresponding week last year. At Rs732,879 million it was higher by Rs4,957 million over previous week’s Rs727,922 million, and by Rs36,435 million, over last year’s corresponding figure of Rs696,444 million.

The scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs126,901 million it was lower by Rs1891 million over preceding week’s Rs128,792 million. Compared to last year’s corresponding figure of Rs152,564 million, the current week’s figure is lower by Rs25,663 million.

The scheduled banks borrowings from banks abroad stood at Rs14,898 million in the current week as against Rs15,106 million a week ago, showing a decline of Rs208 million. It was lower by Rs16,602 million over last year’s corresponding figure of Rs31,500 million.

Money at call and short notice in Pakistan showed a decline in the week under review. It stood at Rs47,622 million, showing a fall of Rs564 million over preceding week’s Rs48,186 million. The current week’s figure was lower by 11,909 million against last year’s corresponding figure of Rs35,713 million.