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SBP Infuses Rs2.06 Trillion to Support Liquidity Needs

12/27/2025

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Summary

Story summary

State Bank of Pakistan injected Rs2.06 trillion into the banking system on December 26, 2025, to address liquidity needs linked to government borrowing.
The total comprised Rs1.73 trillion from conventional open market operations at 10.51% and Rs335 billion from Shariah-compliant Mudarabah-based operations at 10.53%.
Saad Hanif of Ismail Iqbal Securities noted the move reflects the banking sector’s role in financing the fiscal deficit, with liquidity demand driven by government needs rather than private-sector credit growth.
The SBP recently cut its benchmark policy rate by 50 basis points to 10.5%, a cumulative 1,150 basis-point reduction since June 2024.

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Story summary

State Bank of Pakistan injected Rs2.06 trillion into the banking system on December 26, 2025, to address liquidity needs linked to government borrowing.
The total comprised Rs1.73 trillion from conventional open market operations at 10.51% and Rs335 billion from Shariah-compliant Mudarabah-based operations at 10.53%.
Saad Hanif of Ismail Iqbal Securities noted the move reflects the banking sector’s role in financing the fiscal deficit, with liquidity demand driven by government needs rather than private-sector credit growth.
The SBP recently cut its benchmark policy rate by 50 basis points to 10.5%, a cumulative 1,150 basis-point reduction since June 2024.