SBP injects Rs1.8 trillion into money market through open market operations

KARACHI: The State Bank of Pakistan (SBP) on Friday injected Rs1.8 trillion into the financial system through Reverse Repo Purchase and Shariah-compliant Mudarabah-based Open Market Operations (OMOs) to ensure liquidity in the market.

According to SBP data, Rs1.590 trillion was injected through conventional OMOs and Rs209.9 billion via Islamic OMOs. The central bank conducted reverse repo operations for both 7-day and 14-day tenors.

For the 7-day tenor, the SBP received five bids totaling Rs90 billion, offering returns between 11.03% and 11.05%. The bank accepted the entire amount at 11.03%. For the 14-day tenor, 13 bids amounting to Rs1.601 trillion were received at rates between 11.01% and 11.10%, out of which Rs1.500 trillion was accepted at 11.01%. Of the total amount offered at 11.01%, Rs542 billion was accepted on a pro-rata basis.

Under the Shariah-compliant Mudarabah-based OMO, the SBP accepted all three bids for the 7-day tenor, injecting Rs209.9 billion at a return rate of 11.05%. No bids were received for the 14-day tenor.

The move comes as part of the central bank’s regular liquidity management operations to stabilize short-term money market rates and ensure smooth functioning of the financial system.