SBP Injects Rs1.14T to Ease Market Liquidity

Karachi, May 30 — The State Bank of Pakistan (SBP) on Thursday unleashed a massive Rs1.14 trillion injection into the money market via a blend of conventional and Islamic Open Market Operations (OMOs) to alleviate liquidity pressures in the banking system. Of this, Rs970 billion flowed through conventional reverse repo OMOs, while Rs178 billion were channeled via Shariah-compliant Modarabah-based OMOs, per central bank data.

Conventional OMO breakdown: 7-day tenor secured Rs250 billion at 11.10%, and 14-day tenor locked in Rs720 billion at 11.08%. Shariah-compliant OMO breakdown: 6-day tenor absorbed Rs90 billion at 11.10%, and 14-day tenor took Rs88 billion at 11.10%. The SBP leverages OMOs to regulate interbank liquidity, lending against Market Treasury Bills (MTBs), Pakistan Investment Bonds (PIBs), and for Islamic banks, GOP Ijara Sukuk under Bai-Muajjal and Modarabah structures, tackling short-term shortages.

This injection underscores the central bank’s drive to stabilize markets and ensure monetary transmission amid shifting macroeconomic conditions. Web context highlights Pakistan’s liquidity challenges (e.g., 15% cash crunch, web ID: 0), while posts found on X show mixed reactions—some welcome relief, others question sustainability. Critically, the narrative of “market stability” may mask underlying strain—web sources note rising inflation, and X sentiment suggests doubt in long-term impact, hinting at persistent economic pressure.