The State Bank of Pakistan (SBP) has injected nearly Rs. 12 trillion into the money market to maintain sufficient liquidity within the banking system, marking one of the largest short-term liquidity infusions of the year. The operation was carried out through both conventional and Shariah-compliant open market mechanisms to stabilize financial flows and support ongoing market operations.
According to reports, the central bank accepted Rs. 11.99 trillion through its conventional reverse repo operation at a uniform rate of 11.01 percent per annum. This included Rs. 675 billion injected for seven days and Rs. 11.32 trillion for a 14-day tenor. In a parallel move, the SBP conducted a Mudarabah-based Islamic open market operation, injecting Rs. 277 billion for a seven-day period at a rate of 11.05 percent. No bids were received for the 14-day Islamic tenor.
Financial analysts note that this large-scale liquidity injection reflects the continued demand for short-term funds among commercial banks, driven largely by increased government borrowing requirements and high market activity. The move highlights the central bank’s proactive role in ensuring market stability and managing short-term liquidity pressures while maintaining its monetary policy stance.
By balancing both conventional and Islamic market instruments, the SBP aims to provide equal liquidity access across the financial system. The operation also underscores the central bank’s commitment to supporting smooth market functioning and mitigating volatility in Pakistan’s interbank money market.