The State Bank of Pakistan (SBP) injected approximately Rs10.91 trillion into the banking system through conventional and Shariah-compliant open market operations (OMOs) on October 9, 2026, as the central bank continued managing liquidity conditions in the financial sector. According to the results released by the central bank, it accepted Rs10.389 trillion in face value through conventional reverse repo purchase operations and a further Rs519.5 billion through Shariah-compliant Mudarabah-based operations. The combined accepted realised value of the two operations stood at Rs10.625 trillion. The transactions covered different tenors and attracted offers from participating institutions at rates ranging from 11.51% to 11.56%, reflecting demand for short-term liquidity through the central bank’s conventional and Islamic banking facilities.
Under conventional open market operations, the SBP accepted Rs10.3 trillion in face value for a 14-day tenor at an annualised rate of return of 11.51%. The operation attracted 35 quotes, with offered rates ranging between 11.51% and 11.56%. The total amount offered for the 14-day facility reached Rs10.901 trillion in face value, demonstrating substantial demand from participating institutions. The central bank accepted the bids in line with the terms of the operation, with the accepted amount directed towards providing short-term liquidity to the banking system. The 14-day facility accounted for the largest share of the conventional operation, while a separate seven-day transaction provided an additional channel for banks seeking shorter-term funding.
For the seven-day conventional operation, the SBP accepted the entire offered amount of Rs89.3 billion at an annualised rate of return of 11.54%. The transaction attracted four quotes, with all the offered funds accepted by the central bank. Across both conventional tenors, the total offers received amounted to Rs10.990 trillion in face value, while the accepted amount stood at Rs10.389 trillion. The results indicate that most of the conventional liquidity injection was concentrated in the 14-day operation. By conducting transactions with different maturities, the SBP provides financial institutions with access to liquidity over varying periods while managing short-term conditions in the money market.
Alongside conventional operations, the central bank accepted Rs519.5 billion through a 14-day Shariah-compliant Mudarabah-based operation at an annualised rate of return of 11.54%. The Islamic facility attracted six quotes, with offered rates ranging from 11.54% to 11.56%. The total amount offered under the operation reached Rs546.5 billion, while the accepted realised value stood at Rs510.709 billion. The difference between the offered amount and the accepted amount reflects the outcome of the central bank’s bid acceptance process. The Shariah-compliant facility provides Islamic banking institutions with a mechanism for managing liquidity through an arrangement structured to meet applicable Islamic banking requirements.
No bids were received for the seven-day Shariah-compliant operation. The SBP also provided details of bids submitted at specific rates under the two 14-day facilities. In the conventional operation, bids worth Rs4.658 trillion were offered at 11.51%, of which Rs4.057 trillion was accepted on a pro-rata basis. Under the Shariah-compliant operation, institutions offered Rs377 billion at 11.54%, with Rs350 billion accepted on the same basis. These figures provide further insight into the distribution of bids and the amounts accepted at the specified rates. The pro-rata process allowed the central bank to allocate acceptance among eligible bids at the relevant rate rather than accepting the full amount offered at that level.
Open market operations are a key instrument used by the State Bank of Pakistan to manage short-term liquidity in the banking system and maintain money market conditions in line with its monetary policy framework. Through these transactions, the central bank conducts liquidity operations with financial institutions to influence the availability of funds in the banking sector. Conventional reverse repo operations and Shariah-compliant facilities serve institutions operating under different banking structures, allowing liquidity management to cover both conventional and Islamic banking channels. The latest transactions show that the SBP continued to accommodate substantial funding demand through both mechanisms, with the conventional 14-day operation accounting for the largest portion of the accepted volume.
The accepted rates of 11.51% for the conventional 14-day operation and 11.54% for the Shariah-compliant 14-day facility provide an indication of the rates applied to the latest transactions. The seven-day conventional operation also carried a rate of 11.54%. While the scale of accepted bids highlights demand for central bank liquidity, the operations form part of the SBP’s broader approach to maintaining orderly money market conditions. The latest results outline how liquidity was distributed between conventional and Islamic facilities, the tenor preferences reflected in the bids and the rates at which funds were accepted on October 9, 2026.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.