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The State Bank of Pakistan has injected Rs12.43 trillion into the financial system through Reverse Repo Purchase and Shariah-compliant Mudarabah based Open Market Operations, underscoring its continued efforts to ensure smooth liquidity and market stability. The operation reflects the central bank’s active role in managing short-term funding needs amid evolving monetary conditions.
On December 19, 2025, the SBP conducted a large-scale Open Market Operation, injecting Rs12,346.35 billion through Reverse Repo Purchase for 7 day and 14-day tenors. A total of 32 bids were received, showing strong participation from market players. In parallel, the central bank injected an additional Rs81 billion through Shariah-compliant Mudarabah based OMO, reinforcing its dual banking framework.
For the 7-day tenor, SBP received bids worth Rs1,540.2 billion at rates between 10.49% and 10.58%, accepting Rs1,270.2 billion at a cut-off rate of 10.51%. In the 14-day tenor, bids totaling Rs11,076.15 billion were offered at rates ranging from 10.51% to 10.60%, with the SBP accepting the full amount at 10.51%.
Alongside conventional tools, the SBP conducted Mudarabah based OMO to support Islamic banking liquidity. The central bank accepted Rs41 billion for the 7-day tenor at 10.57%, while Rs40 billion was accepted for the 14-day tenor at rates between 10.56% and 10.57%, highlighting consistent demand for Shariah-compliant instruments.
Regular liquidity injections are a key part of SBP’s monetary management strategy, especially as banks adjust to reserve requirements and credit demand. By using both conventional and Islamic instruments, the central bank continues to promote financial stability while supporting Pakistan’s growing Islamic banking sector.
