Karachi: The State Bank of Pakistan released data on its overnight repo and reverse repo facilities, providing insights into the country's financial liquidity landscape. On May 5, 2025, one institution accessed the SBP's overnight repo facility, borrowing 156,000 million Pakistani Rupees. Meanwhile, two institutions utilized the overnight reverse repo facility, with a total amount of 63,800 million Pakistani Rupees.

The repo and reverse repo facilities are tools used by the central bank to manage liquidity in the financial system. The overnight repo facility allows institutions to borrow funds by selling securities with an agreement to repurchase them the next day, effectively providing liquidity to the market. Conversely, the reverse repo facility allows institutions to lend funds by purchasing securities, which helps absorb excess liquidity.

These measures are part of the State Bank's strategy to ensure stability in the domestic financial markets. The data reflects the current demand and supply dynamics of short-term funds among financial institutions in Pakistan.