On March 25, the State Bank of Pakistan sold Rs3.2 billion worth of 3-, 5- and 10-year bonds, slightly above the pre-auction target of Rs3 billion. Yields fell sharply, as banks are awash with surplus liquidity from rising remittances from overseas Pakistan.

Yields fell to 2.87 per cent, 3.19 per cent and 4.03 per cent on 3-, 5- and 10-year bonds against previous rates of 4.74 per cent, 4.93 per cent and 5.56 per cent, respectively.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended March 15, 2003, both notes in circulation and those issued declined in the week under review. Notes in circulation stood at Rs532,065.928 million against earlier week’s figure of Rs532,948.025 million, showing a fall of Rs882.097 million. When compared to the corresponding week a year ago when it was Rs466,735.762 million, the current week’s figure is higher by Rs55,330.166 million.

Total notes issued also recorded a rise in the current week. At Rs532,250.327 million it was smaller by Rs903.88 million over the figure of Rs533,154.207 million recorded a week earlier. In the corresponding week last year it amounted to Rs466,858.596 million, which shows current week’s figure to be higher by Rs65,391.731 million over last year’s figure.

Approved foreign exchange declined in the week to Rs472,227.476 million, smaller by Rs3,779.127 million over preceding week’s figure of Rs476,006.603 million recorded a week earlier. When compared to the corresponding week a year ago, when the figure was Rs172,096.655 million, the current week’s figure was higher by Rs300,130.821 million.

Balances held outside Pakistan in approved foreign exchange showed a further increase in the week under review. It stood at Rs71,327.762 million over preceding week’s figure of Rs68,258.775 million, showing a rise of Rs3,068.987 million. Compared to last year’s corresponding figure of Rs58,255.664 million, the current week’s figure is higher by Rs13,072.098 million.

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 Rs54,028.074 million similar to preceding week’s figure. The current week’s figure is lower by Rs21.367 million over last year’s corresponding figure of Rs54,049.441 million.

There was an inflow of Rs2,982.003 million to the industrial sector during the week under review, depicting a decline of Rs2.264 million over previous week’s Rs2,984.267 million. When compared to last year’s corresponding figure of Rs3,643.058 million, the current week’s figure is lower by Rs661.055 million.

The export sector received Rs42,963.414 million against previous week’s figure of Rs43,777.327 million, showing a decline of Rs813.913 million. Current week’s figure was smaller by Rs11,407.741 million over last year’s corresponding figure of Rs54,371.155 million.

According to the weekly statement of position of scheduled banks for the week ended March 15, 2003, the sum of demand and time liabilities showed a further increase in the week under review. The sum total stood at Rs1,650,110 million against preceding week’s Rs1,644,916 million, showing a rise of Rs5,194 million. As compared to the total deposits of Rs1,400,281 million in the corresponding period last year, current week’s deposits were higher by Rs249,829 million.

During the week under review both demand and time deposits increased. Demand deposits rose to Rs748,887 million, showing a rise of Rs863 million over previous week’s Rs748,024 million. It was also, higher against last year’s corresponding figure of Rs620.026 million by Rs128,861 million.

In the current week, time deposits were higher over preceding week and against the corresponding week last year. At Rs901,223 million, it was larger by Rs4,331 million over previous week’s Rs896,892 million, and by Rs120,968 million, over last year’s corresponding figure of Rs780,255 million.

Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities declined further in the current week. At Rs130,653 million it was smaller by Rs830 million over preceding week’s Rs134,483 million. Compared to last year’s corresponding figure of Rs120,486 million, the current week’s figure is higher by Rs10,167 million.

Scheduled banks borrowings from banks abroad stood at Rs13,886 million in the current week, as against Rs14,291 million a week ago, showing a fall of Rs405 million. It was larger by Rs21 million over last year’s corresponding figure of Rs13,865 million.

Money at call and short notice in Pakistan increased in the week under review. It stood at Rs24,576 million, a rise of Rs2,645 million over preceding week’s Rs21,931 million. When compared to last year’s corresponding figure of Rs45,593 million, the current figure is lower by Rs21,017 million.