Rs10.48 Trillion Injected into Pakistan’s Financial System by SBP

The State Bank of Pakistan (SBP) on Friday infused Rs10.48 trillion into the financial system through conventional reverse repo and Shariah compliant Mudarabah based operations, aiming to stabilize liquidity and ensure smooth functioning of financial markets.

The SBP conducted reverse repo operations for 7 day and 14 day tenors, injecting Rs10.27 trillion across 23 bids. The 7 day reverse repo attracted 19 bids worth Rs10.13 trillion, accepted fully at 11.01%, while the 14 day operation received Rs140.65 billion, accepted at 11.02%.

Simultaneously, Shariah-compliant Mudarabah-based open market operations (OMOs) contributed Rs214.7 billion to the financial system. The 7 day tenor accepted Rs189.7 billion at 11.05%, while the 14 day tenor received and accepted Rs25 billion at 11.06%.

Reverse repo and Mudarabah-based OMOs are key tools used by the SBP to manage liquidity, control inflationary pressures, and maintain financial stability in the banking sector. These operations ensure banks have access to short-term funds while keeping monetary policy aligned with both conventional and Islamic finance principles.