A principal role of SBP is to maintain confidence in the banking system in times of systemic illiquidity. In light of this, internally SBP needs to define clearly Lender of Last Resort (LOLR) functions and the supportive liquidity arrangements.
Currently SBP provides liquidity for solvent banks facing temporary liquidity problems using different instruments, like repos, access the discount window, or using other monetary policy instruments like outright securities purchases (OMOs or directed) or changes in the cash reserve ratio (CRR).