The State Bank of Pakistan (SBP) injected nearly Rs 13.68 trillion into the banking system on Friday through open market operations (OMO). This large liquidity injection aims to support the short-term funding needs of banks and keep the money market stable.
The move came as banks faced liquidity pressure, mainly due to heavy government borrowing. The central bank used both conventional and Shariah-compliant tools to provide funds.
In the conventional reverse repo operation, the SBP injected Rs 13.3 trillion. This included Rs 711.45 billion for seven days at a return rate of 10.53 percent and Rs 12.59 trillion for 14 days at 10.51 percent. Most of the liquidity came through the longer 14-day tenor.
Alongside this, the Shariah-compliant Mudarabah-based facility added Rs 381.29 billion. Of this, Rs 75 billion was for seven days at 10.56 percent and Rs 306.29 billion for 14 days at 10.57 percent. This part especially helped Islamic banks meet their funding requirements without interest-based instruments.
Together, the two operations pumped a total realised amount of Rs 13.688 trillion into the system. The conventional window provided the biggest share, while the Mudarabah facility offered extra support to Shariah-compliant institutions.
Experts say such large injections are common when the government borrows heavily from the banking sector. The SBP regularly uses OMO to balance liquidity so banks can carry out daily operations smoothly and avoid any shortage of funds.
This step is expected to ease pressure in the interbank market and ensure stability in the short term. The central bank continues to monitor the situation closely and will take further actions as needed to support the overall economy.
