The State Bank of Pakistan has executed a massive liquidity injection, pumping Rs10.91 trillion into the country’s banking system through a combination of conventional and Shariah-compliant open market operations. Designed to manage short-term liquidity and align money market conditions with broader monetary policy frameworks, the intervention took place on Friday, October 9, 2026. The central bank accepted Rs10.389 trillion in face value through conventional reverse repo purchase operations, while an additional Rs519.5 billion was injected through Shariah-compliant Mudarabah-based operations, bringing the combined accepted realized value to Rs10.625 trillion.
In its conventional reverse repo operations, the State Bank targeted both two-week and one-week tenors, with the vast majority of liquidity concentrated in the longer timeframe. For the fourteen-day tenor, the central bank received thirty-five quotes offering a total of Rs10.901 trillion in face value, ultimately accepting Rs10.3 trillion at an annualized rate of return of 11.51 percent. Notably, bids worth Rs4.658 trillion were offered exactly at 11.51 percent, out of which Rs4.057 trillion was accepted on a pro-rata basis. For the seven-day conventional operation, the central bank accepted the entire offered amount of Rs89.3 billion against four quotes at a slightly higher rate of 11.54 percent. Overall, the conventional operations saw total offers of Rs10.990 trillion, with Rs10.389 trillion accepted.
To ensure equivalent liquidity access for Islamic financial institutions, the State Bank simultaneously conducted Shariah-compliant Mudarabah-based operations. The fourteen-day Islamic banking operation attracted six quotes offering a total of Rs546.5 billion. From this, the central bank accepted Rs519.5 billion in face value at an annualized rate of return of 11.54 percent. Within this segment, the total amount offered specifically at the 11.54 percent rate was Rs377 billion, of which Rs350 billion was accepted on a pro-rata basis. The accepted realized value for this Shariah-compliant operation stood at Rs510.709 billion. The central bank reported that no bids were received for the seven-day Shariah-compliant operation.