Central bank pumps Rs11tr into market

The State Bank of Pakistan (SBP) on Friday injected over Rs11 trillion into the money market through conventional and Shariah-compliant open market operations (OMOs) to ensure liquidity in the banking system and indirectly meet state fiscal needs.

According to SBP, Rs11.03 trillion was accepted under the conventional reverse repo purchase facility. This comprised Rs2.23 trillion for 7-day tenor at 11.01% and Rs8.80 trillion for 14-day tenor, also at 11.01%.

Separately, the central bank conducted Shariah-compliant Mudarabah-based OMOs, where Rs354 billion was accepted. This included Rs234 billion for 7-day tenor and Rs120 billion for 14-day tenor, both at 11.11%.

Meanwhile, repatriation of profits and dividends from Pakistan surged in August 2025, rising 157.2% year-on-year and 43% month-on-month to $387.7 million. According to AHL, this took total outflows in the first two months of FY26 to $592.7 million, up 115.8% from the same period last year. The Pakistani rupee extended its winning streak against the US dollar on Friday, recording another slight uptick in the inter-bank market.

The local currency closed at 281.46, appreciating by Rs0.01 compared to the previous day's 281.47. This marked the rupee's 31st consecutive session of gains against the greenback.

In global trade, the US dollar stayed stable in early Asian markets as investors awaited new cues after the Federal Reserve's policy decision. The greenback edged higher against the Japanese yen ahead of the Bank of Japan's announcement.

Gold prices in Pakistan fell on Friday, tracking movements in the international market where the metal was on course for a fifth straight weekly gain after the Fed's first rate cut of the year.

In the local market, the price per tola dropped by Rs1,100 to Rs387,500, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). The rate for 10 grams slipped by Rs943 to Rs332,218. A day earlier, the price per tola was unchanged at Rs388,600.

Spot gold rose 0.7% to $3,669.19 per ounce by 1618 GMT. Prices are up 0.7% this week. US gold futures for December delivery gained 0.7% to $3,702.30, according to Reuters.

Commenting on the international trend, Adnan Agar, Director at Interactive Commodities, said the market had recovered somewhat after earlier weakness. "It wasn't that down, the low is $3,640, and the market has made a high of $3,676, and right now it is at $3,369. If the market gets a closing above $70, then there are chances that it will go upside again. But if it closes below $70, and especially below $3,660 and $3,655, then there are chances of the prices going downwards," he noted.