KARACHI, March 25: The State Bank of Pakistan again pumped Rs22.8 billion into the banking system on Tuesday to save banks from a prolonged severe dry spell.

This injection of liquidity temporarily supported the market as rates eased up during the day. During the last couple of weeks, it most of the time remained at 10.4 per cent, just close to the discount rate of 10.5 per cent.

The SBP announced to raise Rs45 billion through auction of treasury bills on Wednesday.

The decision was taken to wipe out the entire liquidity scheduled to come through maturity of government papers the same day.

Dealers said about Rs49 billion are expected to join the market on Thursday, the settlement day of T-bills.

The SBP injected Rs22.8 billion for seven days at the rate of 9.85 per cent.