AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The State Bank of Pakistan (SBP) has reported the latest figures for its overnight Repo and Reverse Repo facilities, revealing a single transaction in the overnight Repo facility on October 10, 2025, amounting to Rs. 25,000 million. No transactions were recorded under the Reverse Repo facility.
The data, released by the Domestic Markets and Monetary Management Department of the SBP, highlights the continued utilization of the central bank’s financial instruments to manage liquidity in the banking system. The Repo facility, often referred to as the “floor” of the interest rate corridor, allows financial institutions to borrow funds overnight against government securities.
The absence of transactions in the Reverse Repo facility, which acts as the “ceiling” of the interest rate corridor, indicates a lack of excess liquidity in the market that requires absorption by the central bank. This reflects a stable demand and supply balance in the domestic money market.
The SBP’s management of these facilities is crucial in maintaining short-term interest rates and ensuring the smooth functioning of the financial system. The central bank’s operations play a critical role in influencing economic conditions and the cost of borrowing in the country.
The figures provide insight into the current monetary policy environment, where the central bank continues to monitor and respond to market needs to bolster economic stability.