On January 22, the government borrowed Rs28.5 billion from the banking system, as banks have excess liquidity. The State Bank had received bids worth Rs83 billion for three months and one year treasury bills against the borrowing target of Rs30 billion.

The maximum yield on three-month bills was down to 3.41 per cent from 3.90 per cent a month earlier, and 3.69 per cent on one year bills down from 4.44 per cent. The central bank sold Rs1.6 billion worth of three-month bills and Rs26.9 billion worth of one year bills at the same rate.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended January 18, 2003, both notes in circulation and those issued which had increased a week earlier, declined in the current week. Notes in circulation stood at Rs519,860.686m against earlier week’s figure of Rs522,634.424m, showing a fall of Rs2,773.738m. When compared to the corresponding week a year ago when it was Rs466,858.596m, the current week’s figure is higher by Rs53,002.090m.

Total notes issued also recorded a fall in the current week. At Rs519,667.614m it was lower by Rs3,102.663m over the figure of Rs522,770.277m recorded a week earlier. In the corresponding week last year it amounted to Rs466,735.762m, which shows current week’s figure to be higher by Rs53,931.852m over last year’s figure.

Approved foreign exchange rose further in the week to Rs439,160.461m, larger by Rs7,730.632m over preceding week’s figure of Rs431,429.829m recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs172,096.655m, the current week’s figure was higher by Rs267,063.806m.

Balances held outside Pakistan in approved foreign exchange declined in the week under review. It stood at Rs50,475.831m over preceding week’s figure of Rs55,330.093m, showing a fall of Rs4,854.262m. Compared to last year’s corresponding figure of Rs58,255.664m, the current week’s figure is however, lower by Rs7,779.833m.

Loans and advances of scheduled banks to the three sectors — agricultural, industrial and export showed a mixed picture in the week under review. The agricultural sector received Rs54,031.769m, against preceding week’s figure of Rs54,012.624m, showing a rise of Rs19.145m. The current week’s figure is larger by Rs17.672m over last year’s corresponding figure of Rs54,049.441m.

There was an inflow of Rs3,001.666m to the industrial sector during the week under review, depicting a decline of Rs3.711m over previous week’s Rs3,005.377m. When compared to last year’s corresponding figure of Rs3,643.058m, the current week’s figure is lower by Rs641.392m. The export sector received Rs47,301.604m over previous week’s figure of Rs46,943.862m, showing a rise of Rs357.742m. Current week’s figure was lower by Rs7,069.551m over last year’s corresponding figure of Rs54,371.155m.

According to the weekly statement of position of scheduled banks, for the week ended January 11, 2003, the sum of demand and time liabilities increased in the week under review. The sum total stood at Rs1,582,078m against preceding week’s Rs1,578,960m, showing a rise of Rs3,118m. As compared to the total deposits of Rs1,368,276m in the corresponding period last year, current week’s deposits were higher by Rs213,802m.

During the week under review both type of deposits increased. Demand deposits rose to Rs718,778m, or by Rs1,800m over previous week’s Rs716,978m. It was also higher against last year’s corresponding figure of Rs603,918m by Rs114,860m.

In the current week, time deposits were higher over the preceding week and against the corresponding week last year. At Rs863,300m, it was higher by Rs1,318m over previous week’s Rs861,982m, and by Rs98,942m, over last year’s corresponding figure of Rs764,358m.

Scheduled banks borrowings from the State Bank against promissory notes and other approved securities showed an increase in the current week. At Rs137,645m it was larger by Rs915m over preceding week’s Rs136,730m. Compared to last year’s corresponding figure of Rs119,984m, the current week’s figure is higher by Rs17,661m.

Scheduled banks borrowings from banks abroad stood at Rs13,120m in the current week, as against Rs14,751m a week ago, showing a fall of Rs1,631m. It was smaller by Rs2,113m over last year’s corresponding figure of Rs15,233m.

Money at call and short notice in Pakistan increased in the week under review. It stood at Rs37,036m, a rise of Rs6,886m over preceding week’s Rs30,150m. When compared to last year’s corresponding figure of Rs50,164m, the current figure is lower by Rs13,128m.

Scheduled banks advances including bills purchased and discounted, declined in the week under review. At Rs1,004,046m it was lower by Rs3,602m over preceding week’s Rs1,007,648m. Compared to the corresponding figure a year ago, when advances were to the tune of Rs985,537m, the current week’s advances are higher by Rs18,509m.