Qudsia Bano

The State Bank of Pakistan on Thursday conducted two separate liquidity operations, 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 ensure stability in the financial system. In the Shariah-compliant Mudarabah-based OMO, banks submitted five quotes for the 1-day tenor, with the quoted return range recorded 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 portion amounted to Rs132,500 million. In realized terms, the total amount offered stood at Rs147,211 million, and the accepted realized value amounted to Rs133,237 million. The uniform accepted rate of return for the Islamic operation was 11.08 percent. This short-term liquidity support highlights the central bank’s continued reliance on Shariah-compliant tools to cater to Islamic banking institutions operating under Mudarabah structures.

On the conventional side, the State Bank conducted a 1-day reverse repo purchase operation. Participating institutions submitted seven quotes, with the offered return range noted between 11.12 percent and 11.10 percent. All seven quotes were accepted, reflecting strong market interest. The face value of both the offered and accepted amounts stood at Rs512,600 million, while the realized value of the bid and accepted amounts was Rs497,186 million. The accepted rate of return for this operation was 11.10 percent.

Together, the two operations underscore the SBP’s dual-track approach to liquidity management—providing support simultaneously to Islamic and conventional market segments. The close alignment of accepted profit and interest rates signals a stable short-term money market environment. These liquidity injections are part of the central bank’s broader monetary management framework aimed at maintaining orderly market conditions and supporting overall financial sector stability.

Credit: INP-WealthPk