State Bank Reports Overnight Repo Activity Amid Financial Adjustments

Karachi: The State Bank of Pakistan disclosed details of its recent overnight repo transactions, indicating that on October 8, 2025, three financial institutions accessed the central bank’s repo facility, borrowing a total of 72,300 million rupees. No institutions utilized the reverse repo facility on the same day, as reported by the central bank.

The overnight repo facility, often referred to as the floor, is a mechanism through which financial institutions can borrow money from the central bank, typically to meet short-term liquidity needs. This transaction allows the State Bank to manage the money supply and stabilize the financial market.

The lack of activity in the reverse repo facility, or the ceiling, suggests that institutions did not find it necessary to park excess funds with the central bank overnight. This facility generally serves as an option for institutions to earn interest on surplus money they do not wish to invest elsewhere immediately.

These repo transactions are a part of the central bank’s monetary management strategy. By adjusting the volume of borrowing and lending through these facilities, the central bank aims to keep the financial system stable and the interest rates within a targeted range.

The State Bank of Pakistan, through these disclosures, provides transparency about its operations, offering insights into its monetary policy implementation. Such data can be crucial for analysts and stakeholders who monitor the country’s economic and financial health.