The State Bank of Pakistan (SBP) injected Rs791.15 billion into the banking system on Monday through both conventional and Shariah-compliant Open Market Operations (OMOs), aiming to ease liquidity constraints in the interbank market.
According to official data, the central bank provided Rs437.15 billion through conventional reverse repo OMOs. This included Rs176.15 billion accepted for a 7-day tenor at a cut-off rate of 12.09%, and Rs261 billion for 14 days, also at 12.09%.
Simultaneously, SBP injected Rs354 billion through Shariah-compliant Modarabah-based OMOs. The full amount offered was accepted, comprising Rs220.5 billion for 7 days at 12.09% and Rs133.5 billion for 14 days at 12.10%.
OMOs are a key monetary policy tool used by the SBP to manage short-term liquidity in the banking system. In injection OMOs, the SBP lends funds to banks or primary dealers against collateral—typically Market Treasury Bills (MTBs), Pakistan Investment Bonds (PIBs), or, in the case of Islamic banks, GOP Ijara Sukuk.
Monday’s sizeable liquidity injection suggests ongoing tightness in interbank funding conditions, with the SBP acting to maintain orderly functioning of the financial system and support short-term interest rate stability.
