State Bank of Pakistan Adjusts Overnight Repo and Reverse Repo Access

Karachi: The State Bank of Pakistan (SBP) has provided updated figures for its overnight repo and reverse repo facilities, revealing significant financial activities on April 21, 2025. According to the SBP’s Domestic Markets and Monetary Management Department, one financial institution accessed the SBP overnight repo facility, drawing an amount of Rs. 185,000 million. Concurrently, another institution utilized the SBP overnight reverse repo facility for Rs. 109,000 million.

The repo and reverse repo facilities are essential tools used by the central bank to manage liquidity in the financial system. The repo facility acts as a floor, allowing institutions to borrow money overnight at a specified interest rate, thereby injecting liquidity into the market. In contrast, the reverse repo facility functions as a ceiling, enabling the SBP to absorb excess liquidity from financial institutions.

These operations reflect the SBP’s ongoing efforts to maintain stability in domestic markets by adjusting liquidity levels as needed. The data indicates the bank’s role in balancing the financial ecosystem by facilitating short-term borrowing and lending among financial institutions.

The figures were released as part of the SBP’s routine disclosure of its monetary management activities. The central bank’s interventions via these facilities are critical for ensuring smooth monetary operations and effective transmission of its monetary policy.