The State Bank of Pakistan (SBP) conducted two Open Market Operations (OMOs) on Friday, injecting a total of Rs901.6 billion into the banking system.
These operations, aimed at managing liquidity in both conventional and Shariah-compliant financial markets, involved conventional Reverse Repo Purchases and Shariah-compliant Mudarabah-based OMOs.
In the conventional OMO, the SBP accepted bids worth Rs755.6 billion out of the total Rs1.038 trillion offered. The accepted amounts were divided between a 7-day tenor, where Rs550 billion was accepted at a rate of 19.59% per annum, and a 28-day tenor, with Rs205.6 billion accepted at the same rate of return.
Simultaneously, the SBP also conducted a Shariah-compliant Mudarabah-based OMO. The central bank accepted the full Rs146 billion offered at a cut-off rate of 19.58% for the 7-day tenor.
No bids were received for the 28-day tenor under this operation.
These OMOs reflect the SBP’s efforts to maintain market liquidity and ensure the smooth functioning of both conventional and Islamic financial sectors in the country. The injections provide financial institutions with the necessary funds to meet their short-term financing needs, stabilizing the broader financial system.
