SBP infuses Rs 12 tr into banks

The State Bank of Pakistan (SBP) on Friday injected about Rs 12 trillion into the money market through conventional and Shariah-compliant open market operations (OMOs) to ensure adequate liquidity in the banking system.

According to the central bank’s Department of Internal Markets and Monetary Management, the SBP accepted Rs 11.99 trillion in face value in the conventional reverse repo (injection) facility at a flat rate of 11.01% per annum.

Of the total, Rs 675 billion were accepted for seven days and Rs 11.32 trillion for 14 days. The act attracted a total of 31 bids, with the seven-day portion being partially accepted on a pro rata basis.

Separately, in Mudaramba-based Shariah-compliant OMO, SBP injected an additional Rs 277 billion over seven days at a rate of return of 11.05%. No bids were received for the 14-day tenor in the Islamic window.

Meanwhile, gold prices in Pakistan rose on Friday, tracking strength in the international gold market, where the precious metal hovered above the key level of $4,000 an ounce amid uncertainty over a possible further rate cut by the US Federal Reserve this year. Despite a cautious tone in global trading, gold remained on track for a third straight monthly gain.

According to data released by the Pakistan Sarafa Gems and Jewelers Association (APGJSA), gold price per tola increased by Rs 5,300 to Rs 424,162. The price for 10 grams increased by Rs 4,544 to Rs 363,650.

Commenting on the international trend, Adnan Agar, director of Interactive Commodities, noted that gold hit a high of $4,038 before retreating to $3,976. He said the market has repeatedly tested the $4,000 level but has struggled to hold gains above it.

“If gold closes below $4,000, it will likely remain somewhat bearish with possible downside targets near $3,900 and $3,850,” he explained, adding that a break above the threshold could push prices to $4,080 and $4,100.

The Pakistani rupee edged higher against the US dollar in the interbank market on Friday. By the end of the session, the local currency settled at 280.91 against the dollar, reflecting a marginal appreciation of one paisa from the previous day’s close of 280.92.