Karachi: The State Bank of Pakistan (SBP) announced a notable utilization of its overnight repo and reverse repo facilities on May 22, 2025. The central bank's figures showed that financial institutions accessed Rs. 25,000 million through the overnight repo facility, while Rs. 322,500 million was utilized via the overnight reverse repo facility.

According to the SBP's Domestic Markets and Monetary Management Department, one financial institution utilized the overnight repo facility, which acts as a short-term borrowing mechanism to provide liquidity. Conversely, four institutions took advantage of the overnight reverse repo facility, which is used to withdraw excess liquidity from the market.

The central bank regularly provides updates on such facilities to ensure transparency and inform stakeholders about the liquidity dynamics in the banking sector. The overnight repo and reverse repo figures highlight the ongoing monetary management activities by the SBP to maintain stability in domestic financial markets.

These figures are part of the SBP's broader efforts to regulate the money supply and interest rates, aligning with its monetary policy objectives. The regular monitoring and reporting of these facilities play a crucial role in understanding the liquidity conditions and financial health of the market.