Pakistan's central bank moved to inject liquidity into the country's struggling financial system on Saturday by cutting the amount of cash commercial banks must hold in reserve. The bank lowered the cash reserve ratio two percentage points to six percent, and said it would be cut to five percent on November 15, as it sought to ease tight credit conditions that have hit economic demand around the globe. Shamshad Akhtar, governor of the State Bank of Pakistan (SBP), said the move would inject 180 billion rupees (2.2 billion dollars) into the system and that the overall package would total 270 billion rupees. "The State Bank will monitor the liquidity flow after the injection of massive liquidity into the banking system," she said. "We would like judicious use of liquidity," she said, adding Pakistan's banking sector was "quite resilient and fully capable of withstanding market shocks and adverse macro economic conditions." The country's biggest stock market, the Karachi Stock Exchange, announced this week it would on October 27 remove the "floor" it imposed two months ago. The bottom limit for the benchmark KSE-100 was put in place following a 40 percent fall in prices since April due to political uncertainty, terrorism and economic instability. The government denies that the country is at risk of defaulting on its foreign loans or suffering a balance of payments crisis.