SBP Injects Rs791.15 Billion to Address Banking System Liquidity

The State Bank of Pakistan (SBP) unleashed a massive Rs791.15 billion into the banking system on Monday, deploying both conventional and Shariah-compliant Open Market Operations (OMOs) to tackle persistent liquidity shortages in the interbank market.

Official figures reveal that Rs437.15 billion was channeled through conventional reverse repo OMOs, split into Rs176.15 billion for a 7-day tenor at a 12.09% cut-off rate and Rs261 billion for 14 days, also at 12.09%. Concurrently, the SBP injected Rs354 billion via Shariah-compliant Modarabah-based OMOs, accepting the full amount offered: Rs220.5 billion for 7 days at 12.09% and Rs133.5 billion for 14 days at 12.10%.

OMOs serve as a critical monetary policy tool, enabling the SBP to manage short-term liquidity by lending funds to banks and primary dealers against collateral like Market Treasury Bills (MTBs), Pakistan Investment Bonds (PIBs), or GOP Ijara Sukuk for Islamic banks.

This substantial injection underscores tight interbank funding conditions, with the SBP acting decisively to stabilize the financial system and ensure short-term interest rate consistency, safeguarding the economy’s operational flow.