State Bank of Pakistan Injects Rs10.31 Trillion into Banking System

The State Bank of Pakistan (SBP) injected Rs10.31 trillion into the banking system on Friday through its Open Market Operation (OMO). This included Rs9.61 trillion disbursed via conventional reverse repo OMO and Rs706 billion provided under Shariah-compliant Modarabah-based OMO.

For the conventional reverse repo OMO, the SBP accepted the entire offered amount of Rs9.61 trillion for a 7-day tenor at a rate of 13.04%, ensuring sufficient liquidity for market participants. Meanwhile, the Shariah-compliant Modarabah OMO accepted Rs706 billion out of the Rs906 billion offered, also for a 7-day tenor, at a slightly higher rate of 13.08%.

Open Market Operations are a key monetary tool used by the SBP to manage liquidity in the banking system. Through such operations, the central bank lends funds to banks against eligible collateral, including Market Treasury Bills (MTBs) or Pakistan Investment Bonds (PIBs), to address liquidity shortages. Alternatively, surplus liquidity is absorbed by selling MTBs to banks