SBP injects Rs11.8tr into market

Central bank conducts OMOs; gold dips Rs3,300

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KARACHI:

In a major liquidity move, the State Bank of Pakistan (SBP) has injected a staggering Rs11.8 trillion into the financial system through two Open Market Operations (OMOs) - a Shariah-compliant Mudarabah-based injection and a conventional Reverse Repo purchase.

The SBP conducted the two OMOs on April 25, 2025.

In the Shariah-compliant OMO, the total amount accepted was Rs257.5 billion, with a breakdown of Rs106 billion for the 7-day tenor at a rate of 12.09% and Rs151.5 billion for the 14-day tenor at a rate of 12.10%.

For the conventional OMO, the total amount accepted was Rs11.6 trillion, comprising Rs447.5 billion for the 7-day tenor at 12.09% and Rs11.1 trillion for the 14-day tenor at 12.03%. Notably, the 14-day tenor saw a pro-rata acceptance, where SBP accepted Rs2.7 trillion out of Rs3.1 trillion offered at 12.03%.

Combining both operations, the SBP injected a total of Rs11.8 trillion into the market. The conventional OMO dominated the injection volume, reflecting significantly higher participation compared to the Shariah-compliant OMO.

The Pakistani rupee recorded a slight gain against the US dollar on Friday, appreciating by 0.03% in the inter-bank market. By the end of the trading session, the local unit closed at 280.97 against the dollar, improving by 10 paisas compared to Thursday's close of 281.07 - its weakest level in 15 months.

Meanwhile, after a streak of record-breaking highs, gold prices witnessed a decline on Friday, reflecting investor concerns and a broader downturn in global markets. In the local market, the price of gold per tola fell by Rs3,300 to settle at Rs348,700, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

This comes after a day of stability on Thursday, when the gold price per tola remained unchanged at Rs352,000.

Internationally, gold also posted a decline, with the APGJSA reporting the global rate at $3,305 per ounce, marking a drop of $33 over the day.

Commenting on the market trend, Adnan Agar, Director at Interactive Commodities, noted that gold peaked at $3,362 during the day before sliding to $3,277, with a low of $3,264. "There's clear downward pressure, and prices could dip further to the $3,190–$3,210 range before any potential rebound," he said.