KARACHI: The State Bank of Pakistan (SBP) has injected liquidity of Rs526.6 billion into the banking system in the third open market operation (OMO) of 2015.
The cash injection was aimed at addressing the shortage of liquidity that has affected the banking system for the last three months.
According to data released by the SBP’s Domestic Markets and Monetary Management Department, the liquidity-injecting OMO had a tenor of four days with the accepted rate of return clocking up at 9.3% per annum.
The latest injection follows OMOs on January 2 and January 9 that injected Rs513.1 billion and Rs694.1 billion, respectively, into the banking system.
The SBP conducted as many as six cash injection operations last month that provided the banking sector with a cumulative liquidity of Rs2.1 trillion.
In contrast, the cumulative liquidity injection in the same month of 2013 was only Rs241.1 billion. In fact, the SBP had to mop up Rs2.4 trillion from the interbank market in July-March of the last fiscal year, as the interbank market had excess liquidity for the most part of 2013-14.
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