In a significant move to address the ongoing liquidity crunch, the State Bank of Pakistan (SBP) conducted one of its largest Open Market Operations (OMOs) on June 20, 2025, injecting Rs14.3 trillion into the banking system. The operation was aimed at fulfilling both temporary and structural liquidity requirements.
According to official figures, the SBP accepted Rs13.93 trillion through a conventional reverse repo operation at an 11.03% annual return rate, based on 36 quotes. Additionally, a Shariah-compliant Mudarabah-based injection of Rs375 billion was executed at a return rate of 11.11% with three accepted quotes.
Sana Tawfiq, Head of Research at Arif Habib Limited, described the liquidity injection as “among the highest single-day OMOs by the central bank,” pointing to temporary Eid-related currency demand and structural challenges like debt repayments and delays in inflows. She emphasized that IMF restrictions on direct government borrowing from the SBP have increased reliance on commercial banks and government securities.
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Analysts expect liquidity injections to remain high until inflows align with outflows and the post-Eid cash demand subsides.
Meanwhile, the Pakistani rupee continued its marginal decline against the US dollar in the interbank market, closing at 283.70, down six paisas from the previous day. The US dollar was buoyed globally by safe-haven demand as investors responded cautiously to tensions in the Middle East.
Gold prices in Pakistan also saw a dip in line with international trends. The price of 24-karat gold per tola dropped by Rs1,595 to Rs357,000, while 10 grams of gold fell by Rs1,368 to Rs306,069, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
Globally, gold remained steady but faced a weekly loss amid uncertainty over US involvement in the Israel-Iran conflict. Spot gold was flat at $3,369.63 per ounce by late Friday.
Adnan Agar, Director at Interactive Commodities, noted that gold remained range-bound between $3,340 and $3,375, with key support levels near $3,320, as traders awaited clarity on geopolitical tensions.
