The State Bank of Pakistan — File Photo
The State Bank of Pakistan — File Photo

KARACHI: Pakistan's central bank said it would buy government paper from commercial banks on Tuesday in a three-day reverse repo to inject funds into the money market.

The State Bank of Pakistan did not say how much money it would inject through the open market operation.

The result of the auction will be announced at 10:45 am (0545 GMT) and settlement will be later in the day.

More From This Section

Dar’s statement helps dollar gain 1pc

Dar’s statement that the dollar will be kept around Rs98 to support the export industry created panic-like situation.

Ecnec okays Rs62bn projects

The Executive Committee of the National Economic Council has approved Rs62 billion worth of development projects.

Cotton output rises to 13.39m bales

Figures compiled by CGA, Aptma and KCA during outgoing fortnight show around 4,953 cotton bales reached ginning units.

OICCI seeks integrated tax collection

The OICCI has asked Sindh to integrate all revenue collection under one roof and also raise tax from agriculture sector.

Comments are closed.

Comments (3)

August 7, 2012 10:31 am
would you mind the reason behind your view ?
August 7, 2012 8:28 am
in my view it will not be better for us that the central bank purchased the govt papers
August 8, 2012 1:49 pm
Afzaal is right. Here's why SBP buying Govt paper is bad. 1. Its the same as printing new money to prop of Govt debt. 2. It puts pressure on the Rupee in the forex market. 3. It encourages the Govt to borrow more by keeping interest rates artificially low. To learn more, google up "Pakistan's Looming Currency Crisis" in TheNew's blog section
Explore: Indian elections 2014
Explore: Indian elections 2014
How much do you know about Indian Elections?
How much do you know about Indian Elections?
From The Newspaper