FLASHNEWS:

State Bank of Pakistan Announces Overnight Repo and Reverse Repo Transactions

Karachi: The State Bank of Pakistan (SBP) has released its latest figures for overnight repo and reverse repo facilities, indicating significant transactions conducted on July 21, 2025. According to the official data, the central bank facilitated one institution with an overnight repo transaction amounting to Rs. 67,000 million. Meanwhile, an overnight reverse repo transaction was extended to another institution, totaling Rs. 160,200 million.

The overnight repo and reverse repo facilities are key tools employed by the SBP to manage liquidity in the banking system. By providing these options, the central bank aims to ensure stability and efficient functioning of the domestic financial markets.

The repo facility, also known as the floor, allows financial institutions to borrow funds from the central bank by pledging securities. Conversely, the reverse repo facility, referred to as the ceiling, enables the central bank to withdraw excess liquidity from the market by selling securities with an agreement to repurchase them at a later date.

These transactions are part of the SBP's ongoing efforts to maintain monetary stability and support economic activity. The figures for July 21 reflect the central bank's strategic approach to managing short-term interest rates and providing liquidity to the banking sector.

The release of these figures underscores the SBP's commitment to transparency and its role in safeguarding the stability of Pakistan's financial system.