Farooq Awan

The State Bank of Pakistan (SBP) injected more than Rs12.5 trillion into the banking system through open market operations (OMOs) conducted on January 2, 2026, according to official data released by the central bank.

Under the conventional open market operation, the SBP conducted reverse repo transactions for seven-day and 14-day tenors. The total amount offered by banks reached Rs13.08 trillion, out of which Rs12.56 trillion was accepted by the central bank.

For the seven-day tenor, banks offered Rs845.9 billion, against which the SBP accepted Rs734.43 billion at a cut-off rate of 10.51 percent. In the 14-day tenor, offers amounted to Rs12.24 trillion, with the SBP accepting Rs11.83 trillion at the same rate of 10.51 percent.

In parallel, the central bank also carried out Shariah-compliant Mudarabah-based OMOs on the same day. Under this facility, total bids of Rs616.75 billion were received, while Rs558.96 billion were accepted.

According to the data, the seven-day Shariah-compliant OMO saw offers of Rs359.65 billion, all of which were accepted at a profit rate of 10.55 percent. For the 14-day tenor, bids amounting to Rs257.10 billion were received, of which Rs199.31 billion were accepted at a rate of 10.54 percent.

The SBP stated that the open market operations were conducted to manage short-term liquidity conditions in the interbank market. The operations covered both conventional and Islamic segments of the banking system, ensuring liquidity availability across the financial sector.

The central bank conducts such operations regularly to align money market liquidity with its monetary policy stance and maintain orderly conditions in the banking system.

Credit: INP-WealthPk