State Bank of Pakistan Grants Rs. 12 Billion in Overnight Repo Facility

Karachi: The State Bank of Pakistan (SBP) recently provided financial institutions with Rs. 12 billion through its overnight repo facility. The transaction, which took place on October 21, 2025, involved one institution availing itself of this liquidity support.

The overnight repo facility is a monetary tool used by the central bank to manage short-term liquidity in the banking system. It operates as a borrowing arrangement where banks can obtain funds from the central bank using government securities as collateral.

According to the State Bank of Pakistan, there were no transactions under the overnight reverse repo facility, which serves as the ceiling for short-term borrowing rates. This indicates that financial institutions did not require additional liquidity from the central bank at the higher rate offered by this facility.

The SBP’s use of the repo facility underscores its role in ensuring liquidity and stability in the domestic financial markets. By providing these targeted interventions, the central bank aims to support the banking sector’s operational needs while maintaining control over interest rates.

The provision of Rs. 12 billion reflects the ongoing efforts of the State Bank to navigate the complexities of the financial system and address the liquidity needs of institutions in a controlled manner.