ISLAMABAD: The State Bank of Pakistan has injected a record Rs14.3 trillion into conventional commercial and Shariah-compliant banks for one week to ease a liquidity shortage following cash withdrawals during Eid-ul-Adha and delays in external inflows.
The injection, carried out through open market operations, amounts to nearly 44% of total deposits of Rs32.7 trillion in May 2025, according to central bank data.
Citing SBP Governor Jameel Ahmad, Arif Habib Limited and Topline Research said the OMO increase was driven by higher currency in circulation during Eid and late arrival of funds from multilateral lenders including the IMF, World Bank, and ADB. The governor said OMO levels are expected to fall in the coming weeks as external inflows resume.
Analysts Sana Tawfiq and Awais Ashraf noted that the Rs14 trillion injection is the highest on record. Tawfiq emphasized that large cash withdrawals during Eid reduced deposit levels and raised demand for liquidity. She added that slow tax revenue collection has widened the fiscal deficit, increasing reliance on domestic debt to finance government spending.
Ashraf said reduced external inflows over the past two to three years have forced the government to depend on bank financing and national saving schemes. Of the total Rs31.8 trillion in domestic debt, Rs28.1 trillion is held by commercial banks.
According to SBP data, Rs13.9 trillion was provided to conventional banks at an 11.03% return rate for seven days, based on all 34 bids received. Shariah-compliant banks received Rs375 billion at an 11.11% rate, based on all three bids from Islamic banks.
