State Bank injects Rs13.3tr liquidity, raises Rs358b through bond auction amid stable outlook
KARACHI: The State Bank of Pakistan (SBP) injected a record Rs13.33 trillion into the banking system on Friday through back-to-back Open Market Operations (OMOs), reinforcing its strategy to ensure liquidity and market stability.
The liquidity boost came through both conventional reverse repo operations and Islamic Mudarabah-based OMOs, underscoring the central bank’s dual-track approach to accommodate conventional and Shariah-compliant institutions.
In the conventional OMO, the SBP injected Rs13.05 trillion, broken down as:
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Rs904.25 billion for 7 days at 11.02%
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Rs12.15 trillion for 14 days at 11.01%
Demand was robust, with total bids reaching Rs13.31 trillion, and accepted on a pro-rata basis.
The Shariah-compliant OMO saw an additional Rs270 billion injected:
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Rs120 billion for 7 days at 11.15%
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Rs150 billion for 14 days at 11.13%
The premium on Islamic rates signals continued demand for compliant liquidity options.
In a separate development, the SBP successfully raised Rs358 billion in a Pakistan Investment Bonds (PIB) auction, beating its Rs300 billion target, as investors placed over Rs1.1 trillion in bids.
Yield movements indicated shifting sentiment:
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2-year PIB yield rose 24 bps to 11.09%
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3-year increased 9 bps to 11.14%
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5-year rose 5 bps to 11.44%
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10-year fell 5 bps to 12.15%
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15-year accepted at 12.45%
According to AKD Securities, the jump in short-term yields reflects tight liquidity and inflation fears, while softening long-term rates hint at investor confidence in macroeconomic reforms.
Meanwhile, the Pakistani rupee gained 0.05%, closing at 282.72/USD, extending a stable trend.
In contrast with global markets, domestic gold prices slipped on Friday. Per tola price dropped Rs100 to Rs352,900, and 10 grams declined Rs86 to Rs302,555, even as international gold surged.
Spot gold jumped 1.8% to $3,350.67/oz, buoyed by weak US jobs data and renewed tariff tensions.
Adnan Agar of Interactive Commodities Gold said gold’s strong rally was driven by a $60 jump linked to Trump-era tariff fears. “Momentum is likely to remain strong into next week,” he noted, identifying a resistance zone near $3,460–$3,470.