KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on August 22, 2023.
Following are the latest KIBOR rates:
| Tenor | Bid | Offer |
| 1 – Week | 21.53 | 22.03 |
| 2 – Week | 21.66 | 22.16 |
| 1 – Month | 21.97 | 22.47 |
| 3 – Month | 22.89 | 23.14 |
| 6 – Month | 22.91 | 23.16 |
| 9 – Month | 22.93 | 23.43 |
| 1 – Year | 22.93 | 23.43 |
The Karachi Interbank Offered Rate (KIBOR) is the benchmark interest rate at which banks lend unsecured funds to one another in Pakistan’s interbank market. It serves as a key reference for pricing a wide range of financial products, including corporate loans, trade finance facilities, and floating-rate financing arrangements.
Changes in KIBOR generally reflect liquidity conditions in the banking system and expectations regarding the State Bank of Pakistan’s monetary policy. Businesses, financial institutions, and investors closely monitor KIBOR movements because they directly influence borrowing costs, investment returns, and overall credit conditions in the economy. A rise in KIBOR typically leads to higher financing costs for borrowers, while a decline can reduce debt servicing expenses and encourage economic activity.
The benchmark remains an important indicator of short-term interest rate trends and market expectations in Pakistan’s financial sector.
Analysts also use KIBOR trends to assess inflation expectations, monetary policy direction, and future financing conditions across Pakistan’s banking industry and economy.