SBP injects Rs 13 trillion into economy, announces Rs 4.5 trillion lending target

The State Bank of Pakistan (SBP) channeled Rs 13 trillion through conventional and Shariah-compliant Open Market Operations (OMOs) on Friday. In the segment of conventional reverse repo purchases, the central bank accepted a total of Rs 12.9 trillion in nominal value, which translates to a realized value of Rs 12.6 trillion.

This included a face value of Rs 750 billion for the seven-day tenor at a flat rate of 10.51% per annum, and a total of Rs 12.24 billion offered for the 14-day tenor, also at 10.51%. Bids for both timeframes ranged between 10.56% and 10.51%, with strong participation reflected in 13 bids for the seven-day expiration and 20 bids for the 14-day expiration. A significant portion of the seven-day offers with a floor rate of 10.51% were accepted proportionately.

In the parallel Shariah-compliant injection operation held on the same day, SBP accepted a total of Rs558 billion in nominal value, corresponding to a realized value of Rs558.9 billion. For the seven-day period, the total of Rs 358 billion offered was accepted at a rate of 10.55%. During the 14-day period, Rs 200 billion of the Rs 258 billion offered were accepted on a pro rata basis at 10.54% p.a. The values ​​for both expirations ranged closely between 10.56% and 10.54%, with two participants in each tenor.

Separately, the SBP released its auction calendar for government securities covering January to March 2026, targeting over Rs 4.5 trillion in fresh borrowing. The plan includes Rs1,350 billion through Pakistan Fixed Rate Investment Bonds (PIBs), Rs300 billion through semi-annual 10-year floating rate PIBs and Rs3,250 billion through marketable Treasury Bills (MTBs).

Fixed rate PIB auctions are scheduled monthly on January 14, February 6 and March 11, with each auction targeting Rs 450 billion. The amount will be spread evenly over periods of two, three, five and 10 years at Rs 100 billion each, along with Rs 50 billion for the 15-year portion. Coupon rates are set at zero for the two- and 15-year maturities, 10.25% for the three-year, 10.50% for the five-year and 11.00% for the 10-year.

The 10-year floating rate PIBs will be auctioned on a bi-weekly basis from January 7 to March 16, with each auction targeting Rs 50 billion at a benchmark coupon of 10.4639%. For short-term financing needs, six MTB auctions are planned between January 7 and March 16, with targets ranging from Rs 350 billion to Rs 850 billion to meet due dates and expected provincial investments.

Meanwhile, the rupee appreciated by one paise against the US dollar in interbank trade on Friday, closing at Rs 280.11 compared to Rs 280.12 a day earlier.

Gold prices, however, rose sharply in the local market. The price of 24 carat gold rose by Rs 5,700 per tola to settle at Rs 460,262, while the price of 10 grams rose by Rs 4,887 to Rs 394,600, according to the All Pakistan Sarafa Gems and Jewelers Association.