The State Bank of Pakistan injected Rs12.2408 trillion into the financial system on Friday through a combination of conventional and Shariah compliant open market operations, as the central bank continued its efforts to manage liquidity conditions in the market. The total injection comprised funds provided through reverse repo purchases and Mudarabah based facilities under the central bank’s liquidity management operations.
According to the State Bank of Pakistan, Rs11.5728 trillion was injected through conventional reverse repo operations, while Rs668 billion was provided through Shariah compliant Mudarabah based open market operations. The operations covered both 14 day and seven day tenors, allowing the central bank to address liquidity requirements across different maturity periods.
Under the conventional 14 day reverse repo operation, the State Bank accepted Rs11.25 trillion after receiving 30 bids with a combined value of Rs11.55595 trillion. The rates of return offered by participating institutions ranged between 11.51% and 11.56%. All 30 bids were accepted at a rate of 11.51%, according to the central bank’s operation details.
Within the 11.51% rate category, participating institutions offered Rs5.149 trillion, of which Rs4.84305 trillion was accepted on a pro rata basis. The allocation formed part of the larger amount accepted by the State Bank through the 14 day conventional reverse repo facility.
The central bank also conducted a seven day conventional operation, through which it accepted Rs322.8 billion. Five bids were received for the entire amount, with offered rates ranging from 11.54% to 11.56%. The State Bank accepted all five bids at a rate of 11.54%, completing the conventional portion of the latest liquidity management operations.
The Shariah compliant operations provided an additional Rs668 billion to the financial system through Mudarabah based facilities. For the 14 day Shariah compliant operation, the State Bank received nine bids with a combined value of Rs667.5 billion. The offered rates ranged from 11.53% to 11.56%, while the accepted rate was set at 11.53%.
At the 11.53% rate, financial institutions offered Rs355 billion for the 14 day Shariah compliant facility. The State Bank accepted Rs287.5 billion from this amount on a pro rata basis. The allocation formed part of the Rs600 billion accepted by the central bank under the 14 day Mudarabah based operation.
The State Bank also conducted a seven day Shariah compliant operation. Three bids amounting to Rs68 billion were received, with rates ranging between 11.53% and 11.56%. The central bank accepted the full Rs68 billion at an accepted rate of 11.53%.
Taken together, the conventional and Shariah compliant operations resulted in a total liquidity injection of Rs12.2408 trillion. The scale of the operation reflects the central bank’s ongoing role in managing liquidity available within Pakistan’s financial system through market based monetary operations.
Open market operations are among the instruments used by the State Bank to influence liquidity conditions in the banking system. Through these transactions, the central bank can provide or absorb funds from financial institutions depending on prevailing market conditions and liquidity requirements.
The latest operation included both conventional reverse repo facilities and Shariah compliant Mudarabah based facilities, allowing institutions operating under different banking structures to participate. The inclusion of both mechanisms enables liquidity management across the broader financial system while accommodating Shariah compliant banking requirements.
The latest Rs12.2408 trillion injection comes as the central bank continues monitoring financial market conditions and liquidity requirements. The accepted bid rates across the different operations remained within a relatively narrow range, with conventional facilities clearing at 11.51% and 11.54%, while Shariah compliant facilities cleared at 11.53%.
The operations were conducted as part of the State Bank of Pakistan’s broader liquidity management activities in the market. By adjusting the availability of funds through open market operations, the central bank manages short term liquidity conditions within the financial system while supporting the functioning of the banking and monetary framework.
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