ISLAMABAD, Nov 20 (Wealth Pakistan): The State Bank of Pakistan carried out two separate liquidity operations on Thursday, injecting funds into the money market through both Shariah-compliant Mudarabah-based Open Market Operations (OMOs) and a conventional reverse repo purchase. The operations reflect the central bank’s ongoing efforts to maintain short-term liquidity and support financial stability.
Islamic OMO records strong participation
In the Shariah-compliant Mudarabah-based OMO, banks submitted five quotes for the 1-day tenor. The quoted return range was between 11.17 percent and 11.05 percent.
Of these, four quotes were accepted.
The face value of bids received stood at Rs146,500 million, while the accepted amount totaled Rs132,500 million.
In realized terms, the total amount offered was Rs147,211 million, and the accepted realized value reached Rs133,237 million.
The uniform accepted rate of return for the operation was 11.08 percent.
This short-term injection shows the central bank’s continued reliance on Shariah-compliant instruments to support Islamic banking institutions working under Mudarabah structures.
Conventional reverse repo operation accepted in full
On the conventional side, the State Bank conducted a 1-day reverse repo purchase. Participating institutions submitted seven quotes, with returns ranging between 11.12 percent and 11.10 percent.
All seven quotes were accepted, reflecting strong interest among market participants.
The face value of both the offered and accepted amounts was Rs512,600 million.
The realized value of the bid and accepted amounts was Rs497,186 million.
The accepted rate of return for this operation stood at 11.10 percent.
SBP maintains dual-track liquidity support
The two liquidity injections highlight the SBP’s dual-track approach to managing money-market conditions. By supporting both Islamic and conventional institutions, the central bank aims to maintain balanced liquidity across the financial system.
The close alignment between accepted profit and interest rates signals a stable short-term money-market environment. These operations form part of the SBP’s broader monetary-management framework designed to ensure orderly market functioning and strengthen overall financial stability.