State Bank of Pakistan Reports Overnight Repo Activities

Karachi: The State Bank of Pakistan has released figures detailing overnight repo and reverse repo transactions conducted on July 3, 2025. The report outlines the participation of financial institutions in these monetary facilities, indicating a balanced engagement with three institutions participating in both repo and reverse repo transactions.

The State Bank’s overnight repo facility, often referred to as the “floor,” saw three institutions borrowing a total of 99,600 million Pakistani Rupees. This facility allows institutions to manage their short-term liquidity needs by borrowing cash from the central bank.

In parallel, the overnight reverse repo facility, known as the “ceiling,” also saw participation from three institutions. These institutions collectively placed 198,000 million Pakistani Rupees with the central bank. This facility is used to absorb excess liquidity from the banking system by allowing institutions to lend cash to the central bank.

The data underscores the State Bank’s ongoing role in facilitating liquidity management for financial institutions, ensuring stability in the domestic money markets. These facilities are integral to the central bank’s monetary policy toolkit, enabling it to maintain control over short-term interest rates.