ISLAMABAD – The State Bank of Pakistan (SBP) conducted a reverse repo and Shariah-compliant Modarabah-based Open Market Operation (OMO) on Wednesday, injecting a total of Rs902.52 billion into the market. Of this, Rs865.12 billion was injected through the reverse repo OMO, while the remaining Rs37.39 billion was injected via the Shariah-compliant Modarabah-based OMO.
The conventional reverse repo operation saw a total of Rs1,011.85 billion offered, with Rs865.12 billion accepted at an interest rate between 11.12% and 11.04%, with a final accepted rate of 11.08% for an 8-day tenor.
The Shariah-compliant Modarabah-based OMO saw Rs37.39 billion offered and accepted at a rate between 11.15% and 11.13%, with an accepted rate of 11.13% for a 3-day tenor.
The SBP uses Open Market Operations (OMO) to manage liquidity in the banking system by either injecting or mopping up funds. In this case, the operations were aimed at addressing liquidity shortages in the system. Eligible collateral for these operations includes Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs) for conventional OMOs, and GOP Ijara Sukuk for Shariah-compliant transactions.
