Karachi: The State Bank of Pakistan (SBP) announced adjustments in its overnight repo and reverse repo facilities on May 21, 2025, according to a recent press release from the central bank. The SBP reported activity involving one institution for each facility, with transactions amounting to Rs. 60,000 million and Rs. 24,400 million, respectively.

The overnight repo facility, which acts as a floor for short-term borrowing rates, saw a transaction totaling Rs. 60,000 million. This mechanism is typically used by financial institutions to obtain liquidity from the central bank in exchange for securities.

Simultaneously, the SBP’s overnight reverse repo facility, serving as a ceiling for short-term lending rates, recorded a transaction amounting to Rs. 24,400 million. This facility allows the central bank to absorb excess liquidity from the banking system.

The announcement underscores the SBP’s continued efforts to manage liquidity in the domestic financial markets. The transactions reflect the central bank’s ongoing operations to maintain stability within the financial system.

This latest move by the SBP is part of its monetary management strategy to ensure the smooth functioning of the financial markets. The central bank regularly adjusts these facilities as part of its broader economic policies.