On February 13, the State Bank of Pakistan raised Rs14.878 billion for 3-month T-bills at 9.45 per cent, up from 9.09 per cent earlier, and Rs9.349 billion for 6-month T-bills at 9.72 per cent from the earlier rate of 9.29 per cent. The SBP raised the highest amount of Rs21.348 billion for T-bills of one year maturity at 9.97 per cent against the earlier rate of 9.4951 per cent.

This was the first increase after the SBP raised the discount rate to 10.5 per cent.

On February 14, the State Bank of Pakistan mopped up Rs15.5 billion under its open market operation of treasury bills.

According to the Statement of Affairs of the State Bank of Pakistan, for the week ended February 2, 2008, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs1,034.923 billion against earlier week’s figure of Rs1,040.269 billion, a decline of Rs5.346 billion. When compared to the corresponding week a year ago when it was Rs799.430 billion, the current week’s figure is higher by Rs235.493 billion.

Total notes issued also declined in the current week over preceding week’s level. At Rs1,035.089 billion it was smaller by Rs5.306 billion over the figure of Rs1,040.395 billion recorded a week earlier. In the corresponding week last year it amounted to Rs799.607 billion, which shows current week’s figure to be higher by Rs235.482 billion over last year’s corresponding figure.

Approved foreign exchange decreased in the week to Rs660.634 billion or by Rs13.148 billion over preceding week’s figure of Rs673.782 billion. When compared to the corresponding week a year ago, when the figure was Rs428.697 billion, the current week’s figure is higher by Rs231.937 billion.

Balances held outside Pakistan in approved foreign exchange decreased in the week under review. It stood at Rs135.230 billion over preceding week’s figure of Rs136.422 billion, a fall of Rs1.192 billion. Compared to last year’s corresponding figure of Rs140.940 billion, the current week’s figure is smaller by Rs5.71 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 Rs49.777 billion, against preceding week’s figure of Rs57.777 billion, showing a fall of Rs8 billion. The current week’s figure is smaller by Rs10.931 billion over last year’s corresponding figure of Rs60.708 billion.

There was an inflow of Rs39.687 billion to the industrial sector during the week under review, a fall of Rs0.037 billion against preceding week’s figure of Rs39.724 billion. When compared to last year’s corresponding figure of Rs3.996 billion, the current week’s figure is higher by Rs35.691 billion.

The export sector received Rs97.997 billion against previous week’s figure of Rs97.606 billion, larger by Rs0.391 billion. Current week’s figure was smaller by Rs8.547 billion over last year’s corresponding figure of Rs106.544 billion.

According to the weekly statement of position of all scheduled banks for the week ended February 2, 2008, deposits and other accounts of the scheduled banks stood at Rs3,591.519 billion, higher by Rs16.731 billion over preceding week’s figure of Rs3,574.788 billion. Commercial banks deposits showed an increase of Rs16.751 billion over the week to Rs3,578.937 billion, against preceding week’s Rs3,562.186 billion. Specialised banks deposits stood at Rs12.582 billion, against preceding week’s Rs12.602 billion, a fall of Rs0.02 billion.

Borrowings by all scheduled banks decreased during the week over preceding week’s figure. It fell to Rs426.083 billion over preceding week’s figure of Rs427.231 billion, a fall of Rs1.148 billion. This was primarily due to a drop in the borrowings by commercial banks, which fell to Rs344.976 billion against previous week’s Rs346.199 billion, or by Rs1.223 billion. Borrowings by specialised banks stood at Rs81.107 billion, against preceding week’s figure of Rs81.032 billion.

Gross advances stood at Rs2,702.862 billion in the week under review, an increase of Rs18.773 billion over preceding week’s figure of Rs2,684.089 billion. Advances by commercial banks rose to Rs2,607.138 billion against earlier week’s figure of Rs2,588.422 billion, or by Rs18.716 billion. Advances of specialized banks stood at Rs95.724 billion, larger by Rs0.057 billion over earlier week’s figure of Rs95.667 billion.

Investments of all scheduled banks decreased in the week by Rs60.102 billion to Rs1,141.424 billion against preceding week’s figure of Rs1,201.526 billion. Commercial banks investment fell to Rs1,127.912 billion, from earlier week’s Rs1,187.941 billion, or by Rs60.029 billion. Specialized banks investment stood at Rs13.512 billion, against preceding week’s Rs13.585 billion, smaller by Rs0.073 billion.

Cash and balances with treasury banks of all scheduled banks increased by Rs32.83 billion during the week to stand at Rs362.080 billion against earlier week’s Rs329.250 billion. The figure for commercial banks stood at Rs359.265 billion against preceding week’s figure of Rs326.426 billion, a rise of Rs32.841 billion, while of specialized banks it stood at Rs2.815 billion over previous week’s Rs2.824 billion.

Total assets of scheduled banks stood at Rs4,832.673 billion, larger by Rs14.292 billion, over preceding week’s figure of Rs4,818.381 billion. Meanwhile, commercial banks assets stood at Rs4,714.853 billion, larger by Rs13.569 billion over previous week’s figure of Rs4,701.284 billion. Specialized banks assets rose to Rs117.821 billion, or by Rs0.724 billion over previous week’s Rs117.097 billion.