The State Bank of Pakistan (SBP) injected Rs11.18 trillion into the financial system on December 19, 2024, using a combination of conventional and Shariah-compliant Open Market Operations (OMO). Of the total amount, Rs10.66 trillion was provided through reverse repo transactions, while Rs516 billion was disbursed via Modarabah-based Shariah-compliant OMOs.
Conventional OMO Results:
The SBP accepted the entirety of Rs10.66 trillion offered in reverse repo injections under conventional terms. This included:
- 7-Day Tenor: Rs2.96 trillion accepted at a rate of 13.05%, with quotes ranging from 13.10% to 13.05%.
- 28-Day Tenor: Rs7.71 trillion accepted at a rate of 13.04%, with quotes ranging from 13.11% to 13.04%.
Shariah-Compliant OMO Results:
For Islamic banking participants, Rs516 billion was injected using Modarabah-based instruments, distributed as follows:
- 7-Day Tenor: Rs410 billion accepted at a rate of 13.09%, with quotes ranging from 13.12% to 13.09%.
- 28-Day Tenor: Rs106 billion accepted at a uniform rate of 13.09%.
The SBP utilises OMOs as a key monetary tool to manage liquidity in the banking system. OMOs can be categorised into two main types. The injection operations address liquidity shortages by lending funds to banks and primary dealers against collateral such as Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs).
Meanwhile the mop-up operations, remove excess liquidity by selling MTBs outright or on a repo basis.
For Islamic banking, Shariah-compliant Bai-Muajjal transactions use Government of Pakistan Ijarah Sukuk as eligible securities, targeting the liquidity needs of Islamic financial institutions.
