State Bank of Pakistan Reports Activity in Overnight Repo Facility

Karachi: The State Bank of Pakistan (SBP) reported the utilization of its overnight repo facility by a single institution on September 3, 2025, with a transaction involving Rs. 40,000 million. No activity was recorded for the SBP’s overnight reverse repo facility on the same date.

The SBP’s overnight repo and reverse repo facilities are key tools used by financial institutions to manage liquidity. The repo facility allows institutions to borrow funds from the central bank with government securities as collateral, while the reverse repo facility enables them to deposit surplus funds at the SBP.

According to the data released by the Domestic Markets and Monetary Management Department of the SBP, only one institution accessed the overnight repo facility. The amount involved in the transaction was Rs. 40,000 million.

The report indicates that there was no utilization of the overnight reverse repo facility, which suggests that financial institutions did not engage in depositing excess funds with the central bank on that date.

These transactions play a significant role in maintaining liquidity in the banking system, ensuring that financial institutions can meet their short-term funding needs. The SBP regularly provides updates on these activities to ensure transparency and inform market participants.