SBP injects Rs12.8tr via OMOs

The State Bank of Pakistan (SBP) on Friday injected substantial liquidity of around Rs12.8 trillion into the banking system through both conventional and Shariah-compliant Open Market Operations (OMOs).

According to official results, the central bank conducted a conventional OMO (reverse repo purchase) on January 16, 2026, injecting a total of Rs12.39 trillion at cut-off rates aligned close to the policy corridor. Under the operation, SBP accepted Rs728.41 billion for the seven-day tenor at a rate of 10.53%, while Rs11.66 trillion was accepted for the 14-day tenor at 10.51%, against total bids of Rs12.72 trillion.

On the same day, SBP also carried out a Shariah-compliant Mudarabah-based OMO injection, providing Rs410.8 billion in liquidity to Islamic banks. The central bank accepted Rs390.8 billion for a seven-day tenor and Rs20.0 billion for a 14-day tenor, both at a rate of return of 10.53%.

Market participants said the scale of the injections underscored persistent liquidity requirements, largely driven by the government's cash balances.

Meanwhile, the Pakistani rupee posted a marginal appreciation against the US dollar in the interbank market on Friday, edging up by one paisa to close at 279.95. A day earlier, the local currency had settled at 279.96 against the greenback.

Gold prices in Pakistan, however, remained unchanged on Friday, tracking a sharp pullback in the international bullion market. Global prices fell by more than 1% as investors booked profits after recent record highs, while easing geopolitical tensions reduced the metal's safe-haven appeal.

In the domestic market, the price of gold per tola stood at Rs482,462, unchanged from the previous close. Similarly, the price of 10 grams of gold remained stable at Rs413,633, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Thursday, gold had declined by Rs3,700 per tola to settle at the same level.

Internationally, spot gold was trading around 1% lower at $4,567.89 per ounce by 10:48am ET, after touching an all-time high of $4,642.72 earlier in the week. Despite the daily decline, bullion remained on track for its second consecutive weekly gain of around 1.3%. The international gold rate was quoted at $4,601 per ounce, inclusive of a $20 premium.

Market sentiment was influenced by signs of easing geopolitical risks, including remarks by former US president Donald Trump suggesting a potential easing of tensions involving Iran, along with reports of a trade deal between the United States and Taiwan. Analysts said profit-taking after record highs weighed on prices, even as broader uncertainty continued to support bullion on a weekly basis. Elevated global prices have also kept physical gold demand subdued in key markets such as India.

Meanwhile, silver prices in the local market edged higher, with silver gaining Rs100 to settle at Rs9,525 per tola. Internationally, silver and platinum were also poised to post weekly gains, reflecting continued investor interest in precious metals despite near-term volatility.