The State Bank of Pakistan (SBP) injected Rs 1,603.6 billion on Friday to maintain market liquidity. The funds were provided through Reverse Repo Purchases and Shariah-compliant Mudarabah-based Open Market Operations (OMO).
The central bank conducted Reverse Repo Purchase operations for 7-day and 14-day tenors on February 20, 2026. Through this mechanism, Rs 1,393.1 billion was injected against 11 bids. An additional Rs 210.5 billion was injected through Shariah-compliant Mudarabah-based OMO.
For the 14-day Reverse Repo Purchase, SBP received seven bids. The total amount offered reached Rs 1,505.5 billion. The rate of return ranged between 10.51% and 10.54%. The central bank accepted Rs 1,300 billion at a return rate of 10.51%. Out of Rs 481 billion offered at 10.51%, SBP accepted Rs 275.5 billion on a pro-rata basis.
For the 7-day tenor, SBP received four bids totaling Rs 93.1 billion. The offered rates ranged from 10.53% to 10.54%. The central bank accepted the full amount at 10.53%. These operations were aimed at ensuring smooth market liquidity conditions.
In addition, SBP conducted Shariah-compliant Mudarabah-based OMO for both 7-day and 14-day tenors. For the 7-day tenor, three bids offered Rs 150 billion. The rates ranged between 10.54% and 10.55%. SBP accepted the full amount at 10.54%.
For the 14-day Shariah-compliant tenor, two bids were received totaling Rs 60.5 billion. The offered rates ranged between 10.54% and 10.55%. The central bank accepted both bids at 10.54%.
The injection of over Rs 1.6 trillion reflects SBP’s ongoing efforts to maintain stable market liquidity in the banking system. By conducting regular OMOs, the central bank ensures that financial institutions have sufficient funds to meet short-term requirements.
Analysts note that such liquidity injections help stabilize short-term interest rates and support overall financial stability. The latest operation highlights SBP’s proactive approach to managing market liquidity and maintaining orderly market conditions.
The central bank continues to monitor financial indicators closely to ensure that liquidity levels remain balanced in line with monetary policy objectives.
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