The State Bank of Pakistan (SBP) recorded Rs151.43 billion in Islamic interbank money market placements on February 26, 2026, underscoring active liquidity management within the country’s Shariah-compliant banking segment. The data was released by the central bank’s Domestic Markets and Monetary Management Department.
A major share of the activity—amounting to Rs69 billion—was carried out between conventional banks and Islamic banks or their Islamic banking branches. These transactions were primarily overnight placements, offering weighted average profit rates ranging between 10.50% and 11.10%, reflecting strong short-term funding demand in the market.
Transactions conducted strictly within the Islamic banking segment, including Islamic banks and Islamic windows of conventional banks, totalled Rs42 billion. Most of these placements were short-term in nature, spanning overnight to two weeks, with profit rates ranging from 10.47% to 10.75%.
Meanwhile, placements involving non-bank entities such as development finance institutions, corporates, mutual funds, insurance companies and microfinance banks reached Rs40.43 billion. In addition to short-term Musharaka and Mudaraba transactions, the market also recorded three-month unsecured Bai-Muajjal placements at a weighted average return of 10.35%.
Overall, Islamic interbank profit rates on the reporting date ranged from 10.00% to 11.10%, indicating stable liquidity conditions in Pakistan’s Shariah-compliant money market.