Karachi: The State Bank of Pakistan (SBP) recently reported the usage of its overnight repo and reverse repo facilities on July 22, 2025. The data indicates that one financial institution accessed the SBP's overnight repo facility, borrowing 51,000 million Pakistani rupees.

Simultaneously, another institution utilized the SBP's overnight reverse repo facility, amounting to 166,600 million rupees. These facilities are part of the central bank's monetary policy tools, aimed at managing liquidity in the banking system.

The repo facility, often referred to as the "floor," allows banks to borrow funds from the SBP, while the reverse repo facility, known as the "ceiling," enables banks to lend surplus funds to the central bank. These transactions are typically short-term, often overnight, and play a critical role in maintaining financial stability.

The data was sourced from the Domestic Markets and Monetary Management Department of the State Bank of Pakistan.