State Bank of Pakistan Reports on Overnight Repo and Reverse Repo Facilities

Karachi: The State Bank of Pakistan (SBP) provided an update on its overnight repo and reverse repo facilities, revealing the activity levels for June 16, 2025. The report indicates that three institutions accessed the SBP’s overnight repo facility, utilizing a total of Rs. 105,000 million. Concurrently, seven institutions made use of the SBP’s overnight reverse repo facility, amounting to Rs. 120,150 million.

The repo facility, often referred to as the floor, is a mechanism through which institutions can borrow funds overnight from the central bank, using securities as collateral. The reverse repo facility, or the ceiling, allows institutions to lend funds to the central bank, again using securities as collateral.

These transactions are part of the SBP’s broader monetary management strategy, aimed at regulating liquidity in the banking system. By offering these facilities, the central bank seeks to ensure stability in short-term interest rates and support efficient functioning of the financial markets.

The data was sourced from the State Bank of Pakistan’s Domestic Markets and Monetary Management Department, underscoring the institution’s role in maintaining monetary policy and financial stability.