SBP injects Rs12.8 trillion through OMOs to ease banking system liquidity

The State Bank of Pakistan on Friday injected around Rs12.8 trillion into the banking system through a mix of conventional and Shariah-compliant open market operations to manage liquidity conditions.

According to official results, the central bank conducted a conventional reverse repo purchase operation on January 16, 2026, injecting Rs12.39 trillion. Of this, Rs728.41 billion was accepted for a seven-day tenor at a cut-off rate of 10.53%, while Rs11.66 trillion was accepted for a 14-day tenor at 10.51%, against total bids of Rs12.72 trillion.

On the same day, SBP also carried out a Shariah-compliant Mudarabah-based open market operation, injecting Rs410.8 billion into Islamic banks. The central bank accepted Rs390.8 billion for a seven-day tenor and Rs20.0 billion for a 14-day tenor, both at a rate of return of 10.53%.

Market participants said the size of the liquidity injections reflected ongoing funding needs in the banking system, largely linked to government cash management and settlement requirements.