The State Bank of Pakistan (SBP) has injected over PKR 3.3 trillion into the financial system through its latest Open Market Operations (OMOs), aiming to manage liquidity and maintain stability in short-term interest rates.
The central bank conducted both conventional and Shariah-compliant operations. The conventional reverse repo operation saw the injection of PKR 3.258 trillion at a cut-off rate of 11.01% for 7-day and 14-day tenors. Meanwhile, the Islamic Mudarabah-based OMO added PKR 193 billion at a slightly higher rate of 11.11% for a 7-day tenor, indicating stronger demand or tighter liquidity within the Islamic banking sector.
An OMO injection is a key monetary tool that helps banks maintain sufficient cash flow, ensuring smooth market operations and rate stability. Analysts note that the SBP’s large-scale participation highlights its active stance in maintaining liquidity aligned with the ongoing monetary policy.
An official close to the development said, “The SBP’s liquidity support reflects its commitment to balancing monetary stability with sectoral funding needs.”
“The difference in cut-off rates between conventional and Islamic OMOs points to varying liquidity pressures across segments,” said a senior market analyst.