KARACHI: In a bold move to ease tight liquidity conditions, the State Bank of Pakistan (SBP) injected a record-breaking Rs13.33 trillion into the banking system on Friday through two major Open Market Operations (OMOs), signalling its continued focus on financial stability.
According to central bank data, the liquidity injection was split between conventional reverse repo operations and Shariah-compliant Mudarabah-based OMOs.
Under the conventional OMO, the SBP pumped in Rs13.05 trillion, comprising:
Rs904.25 billion for 7-day tenor at 11.02%, and
Rs12.15 trillion for 14-day tenor at 11.01%.
Bids were accepted on a pro-rata basis, reflecting strong demand, with total bids reaching Rs13.31 trillion.
In the Islamic OMO, the SBP injected Rs270 billion, including:
Rs120 billion for 7 days at 11.15%, and
Rs150 billion for 14 days at 11.13%.
The slightly higher rates indicate sustained premium demand for Shariah-compliant liquidity instruments.
Separately, the SBP raised Rs358 billion through the latest auction of Pakistan Investment Bonds (PIBs), exceeding the initial target of Rs300 billion. Investor appetite remained strong, with total bids touching Rs1,129 billion.
As per AKD Securities, shorter-term yields rose:
2-year bond yield increased by 24 basis points to 11.09%
3-year up by 9 bps to 11.14%
5-year rose by 5 bps to 11.44%
In contrast, 10-year yield dropped by 5 bps to 12.15%, while the 15-year bond was accepted at 12.45%, marking the first such disclosure for that tenor.
The uptick in short-term yields points to market concerns over near-term inflation and liquidity constraints, while falling long-term yields suggest investor confidence in macroeconomic stability.
Meanwhile, the Pakistani rupee appreciated by 15 paisa, closing at 282.72 against the US dollar, compared to 282.87 a day earlier.
In the commodities market, local gold prices dipped despite a rally in international bullion markets. The price per tola fell by Rs100 to Rs352,900, and 10 grams dropped by Rs86 to Rs302,555, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
This minor drop followed Thursday’s steeper Rs2,000 per tola decline, influenced by local currency moves and weaker domestic demand.
Internationally, spot gold surged 1.8% to $3,350.67 per ounce, driven by weaker US payroll data and rising global trade tensions.
Adnan Agar, Director at Interactive Commodities Gold, noted that gold hit a high of $3,455 and expects momentum to stay bullish into Monday. “Resistance lies near $3,460–$3,470,” he added.
