The State Bank of Pakistan (SBP) has carried out a significant liquidity injection into the financial system through its latest Open Market Operations (OMO), reflecting ongoing short-term funding requirements within the banking sector. In total, the central bank injected Rs13.48 trillion into the market through both conventional reverse repo operations and Shariah-compliant Modarabah-based mechanisms, according to the latest official results issued on April 17, 2026.
Out of the total injected amount, Rs13.04 trillion was provided through the conventional reverse repo OMO mechanism, which remains the primary liquidity management tool for the banking system. Additionally, Rs439.5 billion was injected via Shariah-compliant Modarabah-based OMO, catering specifically to Islamic banking institutions and ensuring liquidity support across both conventional and Islamic financial segments.
In the conventional segment of the operation, the SBP conducted injections across two tenors, including 7-day and 17-day placements. The total amount offered under the conventional structure stood at Rs13,311,700 million, while the accepted amount was Rs13,043,000 million. For the 7-day tenor, banks offered Rs8,768,700 million, out of which Rs8,500,000 million was accepted. The accepted rate for this segment settled at 10.51 percent, with quoted rates ranging between 10.56 percent and 10.51 percent. Notably, total offers at the lowest rate of 10.51 percent reached Rs5.91 trillion, while SBP allocated Rs5.64 trillion on a pro-rata basis.
For the 17-day tenor in the conventional segment, the total offered amount was Rs4,543,000 million, and the entire amount was accepted. The accepted rate for this tenor stood at 10.52 percent, with market quotes ranging from 10.58 percent to 10.52 percent. This indicates stable demand from financial institutions seeking short-term liquidity support at slightly higher tenure-based pricing.
On the Shariah-compliant side, the SBP conducted Modarabah-based OMOs amounting to a total offered size of Rs522,500 million. However, the accepted amount was Rs439,500 million, reflecting selective participation and liquidity needs within the Islamic banking segment. The 7-day Shariah OMO saw full acceptance of Rs362,500 million at a rate of 10.58 percent, while the 17-day tenor saw Rs160,000 million offered but only Rs77,000 million accepted, also at a rate of 10.58 percent. The rate range in this segment remained between 10.60 percent and 10.57 percent across bids.
According to SBP’s operational framework, Open Market Operations are used as a core monetary policy instrument to manage liquidity conditions in the banking system. In injection-based OMOs, the central bank lends funds to banks and primary dealers against eligible collateral such as Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs). These operations are designed to address temporary liquidity shortages in the market.
For liquidity withdrawal or mop-up operations, SBP sells government securities to absorb excess funds from the banking system. In Islamic finance operations, GOP Ijara Sukuk are used as eligible instruments under Bai Muajjal arrangements to ensure Shariah compliance.
Banks and primary dealers participate in conventional OMOs, while Islamic banks and Islamic windows of conventional banks are eligible counterparties for Shariah-compliant liquidity operations. The scale of the latest injection highlights active liquidity management by the central bank amid evolving short-term funding dynamics in Pakistan’s financial system.
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