On January 30, the State Bank of Pakistan received bids worth Rs5 billion for treasury bills against a target of Rs65 billion.

The SBP received bids of Rs4.938 billion for one-year maturity and Rs0.095 billion for 6-month T-bills. However, the central bank rejected all bids.

Market dealers said that the banks had decided not to participate in the auction, mainly because of speculation regarding the discount rate increase.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended January 19, 2008, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs1,052.301 billion against earlier week’s figure of Rs1,056.633 billion, a decline of Rs4.332 billion. When compared to the corresponding week a year ago when it was Rs809.631 billion, the current week’s figure is higher by Rs242.67 billion.

Total notes issued also declined in the current week over preceding week’s level. At Rs1,052.500 billion it was smaller by Rs4.304 billion over the figure of Rs1,056.804 billion recorded a week earlier. In the corresponding week last year it amounted to Rs809.827 billion, which shows current week’s figure to be higher by Rs242.673 billion over last year’s corresponding figure.

Approved foreign exchange decreased in the week to Rs674.554 billion or by Rs7.323 billion over preceding week’s figure of Rs681.877 billion. When compared to the corresponding week a year ago, when the figure was Rs426.317 billion, the current week’s figure is higher by Rs248.237 billion.

Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs142.122 billion over preceding week’s figure of Rs147.775 billion, a fall of Rs5.653 billion. Compared to last year’s corresponding figure of Rs148.457 billion, the current week’s figure is larger by Rs6.335 billion.

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 Rs57.777 billion, similar to preceding week’s. The current week’s figure is smaller by Rs2.93 billion over last year’s corresponding figure of Rs60.707 billion.

There was an inflow of Rs39.728 billion to the industrial sector during the week under review, a fall of Rs0.056 billion against preceding week’s figure of Rs39.784 billion. When compared to last year’s corresponding figure of Rs3.401 billion, the current week’s figure is higher by Rs36.327 billion.

The export sector received Rs98.735 billion against previous week’s figure of Rs99.057 billion, smaller by Rs0.322 billion. Current week’s figure was smaller by Rs7.946 billion over last year’s corresponding figure of Rs106.681 billion.

According to the weekly statement of position of all scheduled banks for the week ended January 19, 2008, deposits and other accounts of the scheduled banks stood at Rs3,555.657 billion, smaller by Rs7.593 billion over preceding week’s figure of Rs3,563.250 billion. Commercial banks deposits showed a decrease of Rs7.658 billion over the week to Rs3,543.070 billion, against preceding week’s Rs3,550.728 billion. Specialised banks deposits stood at Rs12.588 billion, against preceding week’s Rs12.522 billion, a rise of Rs0.066 billion.

Borrowings by all scheduled banks increased during the week over preceding week’s figure. It rose to Rs429.629 billion over preceding week’s figure of Rs416.403 billion, a rise of Rs13.226 billion. This was primarily due to a rise in the borrowings by commercial banks, which rose to Rs348.593 billion against previous week’s Rs335.366 billion, or by Rs13.227 billion. Borrowings by specialized banks stood at Rs81.037 billion, similar to preceding week’s figure.

Gross advances stood at Rs2,689.239 billion in the week under review, an increase of Rs13.518 billion over preceding week’s figure of Rs2,675.721 billion. Advances by commercial banks rose to Rs2,593.581 billion against earlier week’s figure of Rs2,580.152 billion, or by Rs13.429 billion. Advances of specialized banks stood at Rs95.658 billion, larger by Rs0.089 billion over earlier week’s figure of Rs95.569 billion.

Investments of all scheduled banks decreased in the week by Rs23.916 billion to Rs1,192.786 billion against preceding week’s figure of Rs1,216.702 billion. Commercial banks investment fell to Rs1,179.822 billion, from earlier week’s Rs1,204.303 billion, or by Rs24.481 billion. Specialised banks investment stood at Rs12.964 billion, against preceding week’s Rs12.399 billion, larger by Rs0.565 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs2.735 billion during the week to stand at Rs337.796 billion against earlier week’s Rs335.061 billion. The figure for commercial banks stood at Rs334.925 billion against preceding week’s figure of Rs332.112 billion, a rise of Rs2.813 billion, while of specialised banks it stood at Rs2.870 billion over previous week’s Rs2.949 billion.

Total assets of scheduled banks stood at Rs4,801.623 billion, smaller by Rs0.196 billion, over preceding week’s figure of Rs4,801.819 billion. Meanwhile, commercial banks assets stood at Rs4,684.089 billion, larger by Rs0.378 billion over previous week’s figure of Rs4,683.711 billion. Specialised banks assets fell to Rs117.533 billion, or by Rs0.576 billion over previous week’s Rs118.109 billion.