SBP injects Rs2.99 trillion in the market

KARACHI: The State Bank of Pakistan (SBP) injected Rs2,989.2 billion into the market on Friday through reverse repo purchases and Shariah-compliant Mudarabah-based Open Market Operations (OMO).

On December 27, 2024, the SBP conducted reverse repo purchase operations for 7-day and 28-day tenors. According to the results, the central bank accepted Rs2,592.2 billion out of the Rs2,989.2 billion offered through 20 bids.Pakistan Economy – SBP reduced policy rate by 200bps.

For the 7-day tenor, the SBP received 17 bids totaling Rs2,306.6 billion, with rates ranging from 13.04% to 13.11%. The bank accepted 15 bids amounting to Rs2,300.6 billion. For the 28-day tenor, 5 bids were submitted offering Rs291.6 billion at rates between 13.06% and 13.10%, and all were accepted at 13.06%.

In addition, the SBP conducted Shariah-compliant Mudarabah-based OMOs for 7-day and 28-day tenors, injecting Rs397 billion into the market. It received 4 bids for the 7-day tenor totaling Rs297 billion with rates ranging from 13.08% to 13.13%, and 1 bid for the 28-day tenor amounting to Rs100 billion at 13.08%. All 5 bids were accepted at a 13.08% rate of return.

This operation reflects the SBP’s efforts to manage liquidity in the banking system effectively while ensuring adherence to both conventional and Shariah-compliant financial practices.