State Bank of Pakistan Reports on Overnight Repo Facilities Use

Karachi: The State Bank of Pakistan (SBP) reported that two financial institutions accessed its overnight repo facility on July 28, 2025, borrowing a total of Rs. 167 billion. The central bank confirmed that there were no transactions under the reverse repo facility on the same day.

The SBP’s overnight repo and reverse repo facilities are key tools used by financial institutions to manage short-term liquidity needs. Through these mechanisms, institutions can borrow funds overnight, with the repo facility providing liquidity and the reverse repo facility absorbing excess liquidity.

On the specified date, only the repo facility was utilized, indicating a demand for liquidity among the participating financial institutions. The absence of activity in the reverse repo facility suggests there was no excess liquidity that needed to be managed through this channel.

The State Bank of Pakistan regularly updates the market on the usage of these facilities, providing transparency and insights into the liquidity dynamics within the banking sector. The report is part of the central bank’s ongoing efforts to ensure stability and confidence in the financial system.