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KARACHI, Oct 8: The State Bank of Pakistan on Monday injected Rs87.3 billion into the banking system.
The amount was injected for four days at the rate of 9.2 per cent. The liquidity injected was much less than the gap appeared in the wake of massive government borrowing.
The State Bank recently said the liquidity gap is huge and indicated the banks were short of liquidity of over Rs600 billion compared to Rs350 billion the previous fiscal year.
The rapid increase of liquidity gap is directly linked to the government borrowing during the first three months of this fiscal year, which makes about 60 per cent of what it had borrowed in the entire FY12.
