SBP injects Rs4.26trn through conventional, Shariah-Compliant OMOs

The State Bank of Pakistan (SBP) injected a total of Rs4.26 trillion into the market through both conventional and Shariah-compliant Open Market Operations (OMOs) conducted on Friday. 

The injection aims to ensure adequate liquidity in the banking sector as part of the central bank’s liquidity management efforts.

In the conventional OMO, Rs4.23 trillion was accepted in the 7-day Reverse Repo Purchase, with the rate of return set at 17.56%. A total of 27 bids were received, with no bids for the 28-day tenor.

In the Shariah-compliant Mudarabah-based OMO, Rs23 billion was injected for the 7-day tenor at a return rate of 17.60%, with just one bid accepted. 

Like the conventional OMO, no bids were received for the 28-day tenor in the Shariah-based operation.

These operations reflect the SBP’s dual approach to liquidity management, ensuring compliance with both conventional and Islamic banking principles while supporting the stability of the financial system.