Private sector's credit utilisation during the year so far (July 01-October 22, 2005) increased to Rs 72 billion compared with Rs 47.5 billion on October 15, 2005 - an increase of Rs 24.5 billion over the week.
This was revealed in a belated release of the monetary and credit profile of the country by the State Bank for the week ended on 22nd October, 2005.
However, when compared with private sector's borrowings of Rs 101 billion made in the comparable period of FY05 (viz., between July 01-October 23, 2004), credit utilisation so far in FY06 was lower by Rs 29 billion.
Credit utilisation in the corresponding week of FY05 had increased by Rs 18 billion or Rs 6.5 billion lower than in the present year. Over 99 percent of total credit was extended by commercial banks while specialised banks loaned out only a paltry amount of Rs 0.5 billion or about 0.7 percent of total credit.
The government borrowing, in the meanwhile, decelerated to Rs 37 billion compared with Rs 42 billion at the end of the preceding week. Deceleration in government borrowing during the week occurred mainly because of decline in government's budgetary borrowing (down Rs 4 billion) especially that of the Federal government (down Rs 5 billion) and was directly the result of increase in government deposits with the central bank (up Rs 8.6 billion).
The impact of private sector credit expansion was more than offset by a massive draw-down of net foreign assets of the banking system (down Rs 77 billion) resulting in a net contraction of money supply in the country during the year so far (July 01-October 22, 2005) in the amount of Rs 2.2 billion.