The State Bank of Pakistan has taken significant measures to ensure financial stability by injecting massive liquidity into the banking system. On Friday, November 14, 2025, the central bank deployed Rs11,528 billion through various open market operations to address liquidity requirements in the market.
Reverse Repo Operations Details
Through conventional Reverse Repo Purchase operations, the State Bank injected Rs11,208 billion against 26 bids received from market participants. The central bank conducted these operations for both 7-day and 14-day tenors to provide short to medium-term liquidity support.
For the 7-day tenor reverse repo, the SBP received 5 bids collectively offering Rs208 billion. The rate of return ranged between 11.05 to 11.07 percent, with the central bank accepting the entire amount at the lower end of 11.05 percent.
The 14-day tenor attracted substantially more interest, with 21 bids offering a massive Rs11,186.6 billion. The offered rates varied between 11.01 to 11.10 percent. The SBP accepted Rs11,000 billion against all 21 quotes at 11.01 percent rate of return.
Shariah-Compliant Operations
In parallel with conventional operations, the State Bank also conducted Shariah-Compliant Mudarabah based Open Market Operations, injecting an additional Rs320 billion into the financial system.
For the 14-day Shariah-compliant tenor, the central bank received one bid offering Rs20 billion at 11.06 percent rate of return and accepted the entire amount at the offered rate.
The 7-day Shariah-compliant tenor saw 3 bids offering Rs300 billion with rates ranging between 11.01 to 11.07 percent. The SBP accepted all three quotes with the entire amount at 11.01 percent rate of return.
Market Implications and Analysis
This substantial liquidity injection demonstrates the State Bank of Pakistan's proactive approach to maintaining financial stability. The operations were conducted at competitive rates, reflecting the central bank's careful balance between providing necessary liquidity and managing market expectations.
The significant participation from market players, particularly in the 14-day tenor conventional operations, indicates strong demand for liquidity in the banking sector. The pro-rata basis acceptance for amounts offered at 11.01 percent, where the SBP accepted Rs5,700.4 billion out of Rs5,887 billion offered, shows the central bank's strategic approach to liquidity management.
These coordinated measures across both conventional and Islamic banking platforms ensure comprehensive market coverage and support for Pakistan's financial system during periods of liquidity stress.
