KARACHI:
In a significant show of liquidity movement within the Shariah-compliant financial sector, the State Bank of Pakistan (SBP) reported total money market placements in Islamic modes worth Rs151.43 billion (realised amount) for February 26, 2026.
The data, released by the Domestic Markets & Monetary Management Department, highlighted robust inter-bank appetite, particularly through Musharka and Mudaraba instruments, as the market catered to short-term liquidity requirements.
The lion’s share of the activity occurred through transactions initiated by conventional banks with Islamic banks and their branches. This segment alone accounted for Rs69 billion, signalling strong reliance on Islamic windows for interbank liquidity management. The weighted average returns for these overnight transactions ranged between 10.50% and 11.10%, reflecting stable market conditions for secured and unsecured placements.
Within the pure Islamic interbank space, comprising trades strictly among Islamic banks and Islamic branches of conventional banks, a total volume of Rs42 billion was recorded. These trades were primarily concentrated in very short-term tenures, ranging from overnight to two-week durations. The weighted average returns for these transactions stabilised between 10.47% and 10.75%, suggesting a consistent pricing mechanism within the dedicated Shariah-compliant lending pool.
Beyond the banking sector, placements involving non-bank entities, including development finance institutions (DFIs), corporates, funds, insurance companies and microfinance banks, reached a realised total of over Rs40.43 billion.
This segment showcased a broader variety of instruments and tenures. While Mudaraba and Musharka remained the primary drivers for shorter weekly placements, secured-Musharka overnight transactions yielded returns of up to 11%. Separately, inter-bank placements also included longer-tenor activity such as three-month unsecured Bai-Muajjal at a weighted average return of 10.35%.
The data indicated that Islamic interbank profit rates largely ranged between 10.00% and 11.10% on the reporting date, suggesting stable liquidity conditions in Pakistan’s Shariah-compliant money market segment.
Meanwhile, the Pakistani rupee edged up 0.01% against the US dollar in the inter-bank market on Friday, closing at 279.47, up Rs0.03 from Thursday’s 279.50.
Gold prices in Pakistan were largely unchanged on Friday, as stability in the domestic bullion market tracked firm international rates amid persistent geopolitical tensions and softer US bond yields.
According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of 24-karat gold held steady at Rs540,562 per tola, while 10-gram gold remained unchanged at Rs463,444. On Thursday, the per-tola rate had declined by Rs700 to the same level.
In contrast, silver prices posted a sharp increase of Rs270, settling at Rs9,474 per tola.
In the international market, spot gold rose about 0.8% to around $5,227 per ounce, putting bullion on track for a seventh consecutive monthly gain, supported by ongoing geopolitical uncertainty surrounding US-Iran nuclear talks and easing US Treasury yields.
Adnan Agar, Director at Interactive Commodities, said gold traded between $5,168 and $5,240 during the session and was hovering near $5,220. He noted that developments in Iran and upcoming US economic data next week would determine the metal’s near-term direction.
