SBP Injects Rs902.52B via OMO on July 16

Islamabad, July 17, 2025, 08:43 PM PKT — The State Bank of Pakistan (SBP) has unleashed a powerful intervention, conducting a reverse repo and Shariah-compliant Modarabah-based Open Market Operation (OMO) on Wednesday, July 16, injecting a massive Rs902.52 billion into the market to combat liquidity shortages, with Rs865.12 billion via conventional reverse repo and Rs37.39 billion through Shariah-compliant OMO, per official data. The reverse repo saw Rs1,011.85 billion offered, with Rs865.12 billion accepted at an interest rate range of 11.12% to 11.04%, settling at 11.08% for an 8-day tenor, while the Shariah-compliant OMO accepted Rs37.39 billion at 11.15% to 11.13%, fixing at 11.13% for a 3-day tenor.

The SBP deploys OMO to regulate banking system liquidity, using Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs) for conventional operations, and GOP Ijara Sukuk for Shariah-compliant transactions, aiming to stabilize the financial framework. Web context reveals ongoing liquidity efforts, while posts found on X show curiosity—some note market support, others question sustainability. Critically, the narrative of “liquidity boost” may mask deeper economic strain—web data points to persistent deficits, and X sentiment suggests distrust in lasting relief, hinting at underlying challenges.