The State Bank of Pakistan (SBP) has injected Rs. 400 billion into the banking system through a Shariah-compliant Mudarabah-based Open Market Operation (OMO). The short-term injection aims to ease liquidity pressures in the financial system. The official document has been uploaded on SBP’s[1] website.
Liquidity Boost Through 7-Day Tenor
The central bank accepted bids under the 7-day tenor, offering a rate of return of 11.09% per annum. Banks offered a total of Rs. 452 billion, of which Rs. 400 billion was accepted on a realized value of Rs. 402.19 billion.
Out of the total amount offered at 11.09%, Rs. 48 billion was accepted on a pro-rata basis, reflecting a selective approach of SBP regarding liquidity management.
| OMO Tenor | Rate Range (%) | No. of Quotes Offered |
| 07-day | 11.11 – 11.09 | 2 |
| 14-day | 11.05 – 11.05 | 1 |
14-Day Bids Rejected by SBP
Meanwhile, all bids for the 14-day tenor, amounting to Rs. 20 billion, were rejected. This signals SBP’s focus on short-term liquidity support rather than longer-duration injections.
| Tenor | Amount Offered
(Face) |
Amount Offered
(Realized) |
Amount Accepted
(Face) |
Amount Accepted
(Realized) |
Rate of Return
(% p.a.) |
No. of Quotes Accepted |
|---|---|---|---|---|---|---|
| 07-day | 452,000 | 454,226 | 400,000 | 402,190 | 11.09%* | 2 |
| 14-day | 20,000 | 19,219 | (Bids Rejected) | — | — | — |
Key Details at a Glance
- Operation Type: Shariah-Compliant Mudarabah-based OMO (Injection)
- Date: October 17, 2025
- Total Offered: Rs. 472 billion
- Total Accepted: Rs. 400 billion (7-day)
- Accepted Rate: 11.09% p.a.
- 14-day Bids: Rejected
This move underscores SBP’s continued use of Islamic liquidity management tools to stabilize the money market while adhering to Shariah principles. The operation is part of the central bank’s broader strategy to manage money supply efficiently and support financial stability.