June 05, 2025 (MLN): The State Financial institution of Pakistan (SBP) performed a reverse repo and Shariah Compliant Modarabah based mostly Open Market Operation (OMO) in the present day, wherein it cumulatively injected a complete of Rs855 billion into the market of which Rs655bn have been injected by reverse repo OMO.  

In the meantime, the remaining Rs200bn was injected by
Shariah-compliant Modarabah-based OMO.

Explanatory Observe

Open Market Operation is a software utilized by SBP to inject or mop-up funds, based mostly on the liquidity necessities, from the banking system through the acquisition or sale of eligible securities.

Operationally, in case of OMO (Injections), SBP lends funds to banks/Main Sellers (PDs) towards eligible collateral to deal with liquidity
scarcity within the system.

For OMO (Injections), marketable authorities securities, i.e. Market Treasury Payments (MTBs) and Pakistan Funding Bonds (PIBs) are eligible securities.

In OMO (Mop-up), SBP sells MTBs to banks towards funds to take away surplus liquidity from the system.

Eligible collateral for OMO (Mop-up) contains promoting MTBs (on repo or outright foundation) to banks for eradicating extra liquidity from the system.

In case of Bai-Muajjal, a Shariah compliant software for
managing liquidity within the Islamic banking system, GOP Ijara Sukuk are eligible securities.

Banks and PDs are eligible counterparties to OMO
transactions. For Bai Muajjal transactions, Islamic banks and specialised
Islamic home windows of typical banks are eligible counterparties.

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Posted on: 2025-06-05T15:23:54+05:00

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