SBP injects Rs576b into banks

The State Bank of Pakistan (SBP) injected Rs575.8 billion into the market through an open market operation (OMO) reverse repo purchase on Thursday. The SBP conducted the OMO reverse repo purchase (injection) for an eight-day tenor and accepted Rs575.8 billion offered through three bids to address short-term liquidity needs. The OMO received bids at rates ranging from 13.07% to 13.10%, with the SBP accepting the entire amount at a return of 13.07%. "This move reflects the central bank's routine measures to ensure liquidity in the inter-bank market," said Optimus Capital Management Research Head Maaz Azam. A review of banking credit to the private sector reveals a significant surge in borrowing towards the latter part of 2024 as pressure from the government mounted.