KARACHI: The State Bank of Pakistan (SBP) injected Rs1,603.6 billion into the banking system on Friday through reverse repo purchases and Shariah-compliant Mudarabah-based open market operations (OMO), aiming to sustain adequate liquidity and ensure smooth functioning of money markets.
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According to details released by the central bank, the conventional reverse repo OMO conducted on February 20, 2026 for 7-day and 14-day tenors resulted in total injections of Rs1,393.1 billion against 11 accepted bids. Separately, Rs210.5 billion was provided through Shariah-compliant Mudarabah-based OMO for the same tenors.
For the 14-day reverse repo tenor, SBP received seven bids amounting to Rs1,505.5 billion at offered rates between 10.51% and 10.54%. The central bank accepted Rs1,300 billion at a cut-off rate of 10.51%. Out of Rs481 billion offered at this rate, Rs275.5 billion was accepted on a pro-rata basis.
Liquid Foreign Exchange Reserves: 19-Feb-2026
Total reserves: $ 21.30bn, down by $ 73.2mn
SBP reserves: $ 16.2bn, up by $ 19.1mn
Banks reserves: $ 5.1bn, down by 92.3mn
Import cover: 2.52 months#SBP #Reserves #Pakistan #FX pic.twitter.com/vJ8oXU1pAz— Arif Habib Limited (@ArifHabibLtd) February 19, 2026
In the 7-day tenor, four bids totaling Rs93.1 billion were submitted at rates ranging from 10.53% to 10.54%. SBP accepted the entire amount at 10.53%.
The Shariah-compliant segment also saw full acceptance. For the 7-day Mudarabah-based OMO, three quotes worth Rs150 billion were received at rates between 10.54% and 10.55%, all accepted at 10.54%. Similarly, for the 14-day tenor, two bids totaling Rs60.5 billion were offered at 10.54%–10.55%, with SBP accepting the entire amount at 10.54%.
Market participants said the sizeable liquidity injection reflects continued tightness in the interbank market amid elevated funding needs and tax-related outflows. The central bank regularly conducts OMOs to manage short-term liquidity, align overnight rates with the policy corridor and maintain financial stability.
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The latest operation underscores SBP’s active liquidity management stance as banks navigate near-term funding pressures and maintain reserve requirements ahead of upcoming settlement cycles.