Central bank conducts conventional and Shariah-compliant liquidity injections with an eight-day tenor
KARACHI: The State Bank of Pakistan (SBP) injected Rs2.26 trillion into the banking system on Thursday through conventional and Shariah-compliant Open Market Operations (OMO) to maintain adequate liquidity in the financial market.
According to the central bank, a total of Rs2,259.5 billion was injected through Reverse Repo Purchase and Mudarabah-based Open Market Operations with an eight-day tenor.
SBP Conducts Conventional OMO
Under the conventional Reverse Repo Purchase operation conducted on July 2, 2026, the SBP injected Rs2,088.5 billion after receiving seven bids from market participants.
The bids totalled Rs2,088.5 billion, with offered rates ranging from 11.51% to 11.56%. The central bank accepted the full amount at a cut-off rate of 11.51%.
The operation formed the largest portion of the liquidity support provided to the banking sector.
Shariah-Compliant OMO Adds Rs171 Billion
In a separate Shariah-compliant operation, the SBP injected Rs171 billion into the Islamic banking system through a Mudarabah-based Open Market Operation.
The central bank received three bids amounting to Rs171 billion, with proposed rates between 11.53% and 11.60%.
The entire amount was accepted at a rate of return of 11.53%, providing additional liquidity to Islamic financial institutions.
Routine Liquidity Management
The Open Market Operations are part of the SBP’s routine monetary policy framework aimed at maintaining liquidity in the banking system and ensuring the smooth functioning of money markets.
Through these operations, the central bank manages short-term liquidity conditions, helping financial institutions meet their funding requirements while supporting stability in the financial sector.
The latest injection reflects the SBP’s continued efforts to ensure sufficient liquidity in both conventional and Islamic banking segments through regular market operations.