ON MARCH 6, the State Bank of Pakistan (SBP) mopped up Rs11.39 billion through sale of T-bills against the target of little less than Rs7 billion.

The SBP raised Rs 5 billion by selling three-months bills; Rs5.4 billion by selling six-months bills and Rs934.7 million through sale of one-year bills at the weighted average yield of 5.81 per cent, 6.46 per cent and 7 per cent respectively. The auction of T-bills had generated total bids worth Rs16.88 billion.

This was for the second time that the central bank had kept the cut-off yields unchanged. Top bankers say the central bank wanted to keep the monetary policy stable to avoid a speculative attack on the rupee.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended February 23, 2002, both notes in circulation and those issued maintained the upward trend in the week under review.

Notes in circulation stood at Rs473,625.757 million against preceding weeks Rs462,208.321 million, showing a rise of Rs11,417.436 million. When compared to the corresponding week a year ago when it was Rs402,410.440 million the current week7s figure is higher by Rs71,215.317 million.

Total notes issued also depicted a rise in the current week. At Rs473,759.697 million, it was larger by Rs11,390.639 million over a week earlier figure of Rs462,369.058 million. In the corresponding week last year, it amounted to Rs402,591.879 million, which shows current week’s figure to be higher by Rs71,167.818 million over last year’s figure.

The approved foreign exchange rose in the week under review, as against a fall recorded a week ago. It stood at Rs155,794.332 million, showing a rise of Rs5,481.773 million over previous week’s Rs150,312.559 million. When compared to last year’s corresponding figure of Rs45,451.072 million, the current week’s figure is substantially higher by Rs110,343.26 million.

Balances held outside Pakistan in approved foreign exchange, recorded a decline in the week under review. It stood at Rs71,486.870 million over preceding week’s figure of Rs73,026.349 million, showing a fall of Rs1,539.479 million. Compared to last year’s corresponding figure of Rs17,385.928 million, the current week’s figure is larger by Rs54,100.942 million.

Loans and advances of scheduled banks to the three sectors, agricultural, industrial and export show a mixed picture in the week under review.

The agricultural sector received Rs54,397.441 million, against preceding week’s figure of Rs54,770.441 million, showing a of Rs373 million.

The current week’s figure is larger by Rs333.168 million over last year’s corresponding figure of Rs54,064.273 million.

There was an inflow of Rs3,673.172 million to the industrial sector during the week under review, depicting a decline of Rs10.346 million over previous week’s Rs3,683.518 Compared to last year’s corresponding figure of Rs4,555.158 million, the current week’s figure is lower by Rs881.986 million.

The export sector received Rs51,885.628 million over previous week’s figure of Rs50,952.032 million, showing a rise of Rs933.596 million.

Current week’s figure was lower by Rs27,973.356 minion over last year’s corresponding figure of Rs77,858.984 million.