The State Bank of Pakistan (SBP) injected more than Rs12 trillion into the banking system through two separate Open Market Operations (OMOs) conducted on July 31, 2026. The liquidity support included both conventional Reverse Repo Purchase operations and Shariah-compliant Mudarabah-based OMOs, reflecting the central bank’s continued use of dual monetary instruments to manage liquidity requirements across Pakistan’s conventional and Islamic banking sectors.
According to the details released by the central bank, the combined accepted face value of both operations reached Rs12.056 trillion. The largest share of the liquidity injection came through the conventional Reverse Repo Purchase operation, while an additional amount was provided through the Shariah-compliant facility designed to serve Islamic financial institutions. Open Market Operations remain one of the State Bank’s primary tools for maintaining liquidity in the financial system and ensuring the smooth functioning of the money market.
Under the conventional Open Market Operation, the State Bank offered liquidity through two separate maturities of seven days and seventeen days. For the seven-day operation, five bids were received with quoted rates ranging between 11.54 percent and 11.56 percent. The central bank accepted the entire offered face value of Rs163.1 billion at the lowest accepted rate of 11.54 percent.
The larger seventeen-day conventional operation attracted 28 bids with quoted rates ranging from 11.51 percent to 11.57 percent. Financial institutions offered securities with a total face value of Rs11.953 trillion under this tenor. After evaluating the bids, the State Bank accepted Rs11.75 trillion in face value at a rate of 11.51 percent. Since the amount quoted at the accepted rate exceeded the required allocation, the central bank distributed a portion of the accepted amount on a pro-rata basis. Of the Rs5.4435 trillion submitted at the accepted rate, Rs5.2404 trillion was allocated proportionately among participating institutions.
Overall, the conventional Open Market Operation received bids with a total face value of Rs12.1162 trillion, out of which the State Bank accepted Rs11.9131 trillion. In realised value terms, the operation represented Rs11.788 trillion offered and Rs11.591 trillion accepted, making it the dominant contributor to the day’s liquidity injection.
Alongside the conventional operation, the State Bank also carried out a Shariah-compliant Mudarabah-based Open Market Operation to provide liquidity to Islamic banking institutions. Similar to the conventional facility, the Islamic operation was offered through two maturities of seven days and seventeen days.
For the seven-day Shariah-compliant operation, six bids were submitted with quoted rates between 11.56 percent and 11.58 percent. The central bank accepted the full face value of Rs71 billion at an accepted rate of 11.56 percent. In the seventeen-day operation, five bids were received within a quoted range of 11.52 percent to 11.57 percent against a total offered face value of Rs505.9 billion. The State Bank accepted Rs400 billion in face value at the rate of 11.52 percent. Because demand at the accepted rate exceeded the allocation, only Rs146.1 billion of the Rs252 billion submitted at that rate was accepted through a pro-rata allocation.
Across both Islamic tenors, the Shariah-compliant Open Market Operation received total bids with a face value of Rs576.9 billion, of which Rs471 billion was accepted. The realised value amounted to Rs570.595 billion offered and Rs465.409 billion accepted.
The latest liquidity injections demonstrate the State Bank of Pakistan’s continued reliance on both conventional and Islamic monetary policy instruments to support stability in the banking sector. By conducting parallel Open Market Operations for conventional and Islamic financial institutions, the central bank aims to ensure balanced liquidity management across Pakistan’s evolving financial system while maintaining orderly money market conditions and supporting the effective transmission of monetary policy.
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