State Bank Pumps Record Rs. 12 Trillion Into Banking System

The State Bank of Pakistan (SBP) injected nearly Rs. 12 trillion into the money market on Friday to ensure ample liquidity in the banking system. This marks one of the largest short-term injections seen this year. According to the Tribune, the operation was conducted through both conventional and Shariah-compliant open market operations. The central bank accepted Rs. 11.99 trillion in its conventional reverse repo operation at a uniform rate of 11.01 percent per annum. Of this, Rs. 675 billion was injected for seven days and Rs. 11.32 trillion for 14 days. A separate Mudarabah-based Islamic OMO saw the SBP inject an additional Rs. 277 billion for a seven-day period at a rate of 11.05 percent. No bids were placed for the 14-day Islamic tenor. Analysts say the move puts into perspective the ongoing liquidity needs of commercial banks, driven by government borrowings and elevated market activity. The injections also suggest that the central bank remains active in managing short-term liquidity while keeping policy direction steady.