The State Bank of Pakistan (SBP) injected nearly Rs. 12 trillion into the money market on Friday to ensure sufficient liquidity in the banking system. The move marks one of the largest short-term liquidity operations conducted by the State Bank this year.
According to The Express Tribune, the operation was carried out through both conventional and Islamic open market operations (OMOs). The injection comes as part of the central bank’s ongoing efforts to stabilize the market and support the financial system.
In the conventional reverse repo operation, the State Bank accepted Rs. 11.99 trillion at a uniform rate of 11.01 percent per annum. Out of this total, Rs. 675 billion was injected for a seven-day term, while Rs. 11.32 trillion was allocated for 14 days.
Additionally, through the Islamic Mudarabah-based OMO, the central bank injected Rs. 277 billion for seven days at a rate of 11.05 percent. However, no bids were received for the 14-day Islamic tenor, according to market data.
Experts say this massive liquidity injection highlights the ongoing funding needs of commercial banks, which have been facing higher borrowing requirements due to increased government financing and elevated market activity.
The operation also signals that the State Bank remains proactive in managing short-term liquidity pressures. Despite challenges in the broader economy, the central bank continues to ensure that the financial sector operates smoothly without significant liquidity stress.
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Analysts believe these injections will help stabilize interbank lending rates and support the smooth functioning of financial transactions. The move aligns with the State Bank’s broader monetary policy goals of maintaining stability while providing flexibility to address short-term liquidity imbalances.
