Islamabad: One financial institution accessed the State Bank of Pakistan's (SBP) overnight repo facility on August 12, 2025, borrowing 45 billion rupees. This suggests a potential tightening of liquidity in the money market.
Concurrently, one institution availed itself of the SBP's overnight reverse repo facility, parking 56.75 billion rupees. This indicates some institutions had surplus funds.
The SBP's repo facility acts as a short-term loan for banks facing liquidity shortages, while the reverse repo lets banks deposit excess cash with the central bank. The difference in usage between the two facilities illustrates the varied liquidity positions within the banking sector. The figures are reported by the central bank's Domestic Markets and Monetary Management Department.