The State Bank of Pakistan (SBP) injected more than Rs12.25 trillion into the banking system on December 19, 2025, through conventional and Shariah-compliant open market operations (OMOs) to manage short-term liquidity conditions.
In conventional operations, SBP conducted a reverse repo OMO, accepting Rs12.35 trillion against total bids of Rs12.62 trillion for seven-day and 14-day tenors. The accepted return for both tenors stood at 10.51% per annum, reflecting easing money market conditions following the recent policy rate cut. Under the seven-day tenor, Rs1.27 trillion was accepted, while the bulk of liquidity — Rs11.08 trillion — was injected via the 14-day tenor, indicating banks’ preference for longer-duration funding.
Separately, Shariah-compliant Mudarabah-based OMOs injected Rs81 billion into Islamic banks, with the entire offered amount accepted for both seven-day and 14-day tenors at rates of 10.57% and 10.56%, respectively.
Meanwhile, gold prices in Pakistan declined, tracking subdued movement in the international bullion market, where a firmer US dollar and rising Treasury yields dampened demand for the non-yielding metal. Locally, the price of gold per tola fell by Rs900 to Rs454,862, while 10-gram gold declined by Rs772 to Rs389,970, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Silver also eased by Rs52 to close at Rs6,848 per tola.
In the international market, spot gold rose marginally by 0.1% to $4,338.37 per ounce as of 1505 GMT but remained set for a weekly gain of about 0.9%. US gold futures also increased by 0.1% to $4,370.10 per ounce. Analysts forecast gold prices next year could range between $4,800 and $5,100, reflecting continued investor interest.
Adnan Agar, Director at Interactive Commodities, noted that differing analyst forecasts reflect varying financial models and assumptions rather than contradictions. He added that while elevated prices may temper expectations for 2026, gold remains at historically high levels, and thin year-end trading could trigger unexpected movements. Agar suggested gold could potentially test new highs in late December or early January as global markets enter a quieter phase.
On the currency front, the Pakistani rupee posted a marginal gain against the US dollar in the inter-bank market, closing at 280.25 after appreciating by Re0.01 from the previous session’s 280.26.
The combined liquidity injections and market movements indicate that while the banking system remains well-supported, global and local factors continue to influence commodity and currency trends, underscoring the importance of monitoring both domestic and international financial conditions.
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