State Bank of Pakistan Announces Access to Overnight Repo Facilities

Karachi: The State Bank of Pakistan has announced the availability of its Overnight Repo and Reverse Repo Facilities for financial institutions, reflecting its ongoing efforts to manage liquidity in domestic markets. The announcement details the amounts accessed by institutions under these facilities.

According to a statement by State Bank of Pakistan, on February 11, 2025, two institutions accessed the Overnight Repo Facility, amounting to 240,200.00 units. The same number of institutions utilized the Overnight Reverse Repo Facility, with a total amount of 74,500.00 units.

The Overnight Repo and Reverse Repo Facilities are tools used by central banks to manage the money supply and ensure liquidity in the financial system. These facilities allow financial institutions to borrow or lend money overnight, with securities as collateral, to meet short-term funding needs.

The recent data release underscores the central bank’s role in stabilizing the financial markets by providing necessary short-term funds to financial institutions. This action is part of the broader monetary policy framework aimed at maintaining economic stability.

Financial analysts and institutions closely monitor such releases to gauge the central bank’s stance on market liquidity and interest rate directions. The data serves as an indicator of prevailing market conditions and the central bank’s responsiveness to financial fluctuations.

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