SBP injects over Rs4.5 trillion via OMOs to support liquidity

The State Bank of Pakistan (SBP) injected more than Rs4.5 trillion into the banking system through open market operations to maintain liquidity as the government meets its fiscal needs.

According to the central bank’s OMO results, Rs4.228 trillion was injected through conventional operations for two and four days at rates of 11.55% and 11.53%, respectively.

In addition, the SBP provided Rs239.4 billion through a Mudarabah-based OMO for four days at a rate of 11.59%.

Market analysts noted that the total injection was lower than the maturing amount of Rs5.06 trillion. AKD Securities said the shortfall may be partly covered through proceeds from a $750 million Eurobond issuance and fiscal adjustment measures.

The liquidity operations follow the SBP’s recent decision to raise the policy rate by 100 basis points to 11.5%, marking the first increase in nearly three years.