State Bank of Pakistan Provides Substantial Overnight Liquidity Support

Karachi: The State Bank of Pakistan extended significant liquidity support to financial institutions through its overnight reverse repo facility, according to a recent release by the central bank’s Domestic Markets and Monetary Management Department. On October 15, 2025, a total amount of Rs. 142,500 million was accessed by one institution under the reverse repo facility, indicating the ongoing demand for liquidity in the banking sector.

The data revealed no institutions accessed the overnight repo facility, which serves as the floor for monetary policy rates. This suggests that banks were not in need of depositing excess funds with the central bank on that particular day.

The reverse repo facility, which acts as a ceiling, allows financial institutions to borrow funds from the central bank against eligible securities. The facility is a critical tool used by the State Bank to manage liquidity conditions in the market and ensure stability within the financial system.

These transactions are part of the State Bank’s broader monetary policy strategy to maintain an appropriate balance of liquidity in the financial markets. The use of the reverse repo facility highlights the central bank’s role in providing necessary funds to accommodate the liquidity demands of financial institutions.

The latest figures underscore the State Bank’s commitment to stabilizing the financial market by using its monetary instruments effectively. As the economic landscape continues to evolve, the central bank remains vigilant in its efforts to manage monetary conditions in the country.