Karachi – The State Bank of Pakistan (SBP) has supplied a massive Rs12.37 trillion into the banking system via Open Market Operations (OMOs) on Friday. These injections aim to ease the short-term liquidity crunch gripping many banks.
A substantial amount—Rs12.2 trillion—was provided through a conventional seven-day reverse repo, where banks deposit government securities and earn interest. Concurrently, the SBP deployed Rs178 billion under a Shariah-compliant Modarabah reverse repo to support the Islamic banking sector.
In the conventional operation, the SBP received Rs12.42 trillion in bids and accepted Rs12.2 trillion at a cut-off rate of 11.07%, with bid rates ranging between 11.04% and 11.20%. Out of 34 bids submitted, 26 were accepted. For the Islamic transaction, offers totaled Rs326 billion, of which Rs178 billion were accepted at 11.13%, reflecting healthy demand in both segments.
OMOs allow the SBP to inject funds using Market Treasury Bills, Pakistan Investment Bonds, or Ijara Sukuk for Islamic deals. These operations help commercial banks and primary dealers manage daily cash flow needs and fulfil mandatory liquidity ratios.
Today’s mammoth injection underscores strong quarter-end liquidity demand and the lingering effects of tight monetary policy. By using both conventional and Islamic tools, the SBP ensures all sectors receive support, maintaining stability across Pakistan’s financial system.