The State Bank of Pakistan (SBP) injected a cumulative Rs3.27 trillion into the banking system through conventional reverse repo and Shariah-compliant Modarabah-based Open Market Operations (OMO) on Thursday to address short-term liquidity requirements.

Under the conventional OMO, the central bank accepted Rs2.66 trillion against total offers of Rs3.12 trillion.

For the 10-day reverse repo, SBP accepted the entire Rs156.6 billion offered at a cut-off rate of 11.54%.

In the 14-day operation, the central bank accepted Rs2.50 trillion against offers of Rs2.97 trillion, with a cut-off rate of 11.51%. SBP accepted Rs1.11 trillion out of Rs1.58 trillion offered at 11.51% on a pro-rata basis.

Meanwhile, the Shariah-compliant Modarabah-based OMO injected an additional Rs620 billion into the Islamic banking system against total offers of Rs657 billion.

For the 10-day Shariah-compliant reverse repo, SBP accepted the full Rs170 billion offered at a cut-off rate of 11.55%.

In the 14-day operation, the central bank accepted Rs450 billion against offers of Rs487 billion, with a cut-off rate of 11.52%. Of the Rs385 billion offered at 11.52%, SBP accepted Rs348 billion on a pro-rata basis.

Open Market Operations are used by the central bank to inject or absorb liquidity from the banking system depending on market requirements. Under reverse repo injections, SBP provides short-term funds to banks and primary dealers against eligible government securities, while the Shariah-compliant Modarabah-based OMO serves the same liquidity management purpose for Islamic banking institutions using Government of Pakistan Ijarah Sukuk as eligible collateral.