SBP injects Rs12.5tr liquidity

The State Bank of Pakistan (SBP) on Friday injected a total of Rs12.5 trillion into the financial system through Reverse Repo Purchase and Shariah-compliant Mudaraba-based Open Market Operations (OMO) to indirectly meet the government's fiscal needs.

The central bank conducted Reverse Repo Purchase (injection) operations for 7-day and 14-day tenors on September 12, 2025, channelling Rs12.2 trillion against 33 bids. In addition, another Rs322.5 billion was provided through a Shariah-compliant Mudaraba-based OMO.

For the 7-day tenor Reverse Repo, SBP received 24 bids amounting to Rs11,100.8 billion at return rates ranging between 11.01% and 11.12%. The central bank accepted Rs11 trillion at 11.01%, including Rs5,214.2 million on a pro-rata basis out of Rs5,315 million offered at that rate.

For the 14-day tenor, SBP received nine bids totalling Rs1.2 trillion, offered at return rates between 11.03% and 11.12%. The bank accepted the entire amount at 11.03%.

Meanwhile, under the Shariah-compliant Mudaraba OMO, no bids were received for the 14-day tenor. However, for the 7-day tenor, SBP received four bids worth Rs322.5 billion at rates ranging from 11.06% to 11.15% and accepted the full amount at 11.06%.

Furthermore, at the end of the trading session, the rupee appreciated by 0.00% DoD against the greenback to settle at 281.55. It has depreciated by 1.07% CYTD but appreciated by 0.79% FYTD, according to IIS.

Pakistan also received gross inflows of $169 million under the Roshan Digital Account (RDA) in August 2025 versus the last 6-month average of $191 million and the average of $182 million since its launch in September 2020, according to Topline Securities. Net inflows (gross inflows less repatriated funds) stood at $146 million in August 2025 against the 6-month average of $168 million and the overall average of $151 million since September 2020.

Moreover, the price of 24-karat gold in Pakistan jumped by Rs2,500 per tola on Friday, closing at Rs386,500 compared to Rs384,000 a day earlier, as reported by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

Similarly, the rate of 10 grams of 24-karat gold increased by Rs2,143 to Rs331,361 from Rs329,218, while 10 grams of 22-karat gold rose by Rs1,964 to Rs303,758 against the previous Rs301,794.

Globally, gold prices rose on Friday, holding close to record highs hit earlier this week, as signs of a weakening US labour market reinforced expectations that the Federal Reserve will deliver its first rate cut of the year next week, according to Reuters.

Spot gold was up 0.4% at $3,648.55 per ounce, as of 1825 GMT, close to Tuesday's all-time high of $3,673.95. The metal has gained 1.7% so far this week and is poised for a fourth consecutive weekly advance.