KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on May 16, 2023.
Following are the latest KIBOR rates:
| Tenor | Bid | Offer |
| 1 – Week | 20.49 | 20.99 |
| 2 – Week | 20.67 | 21.17 |
| 1 – Month | 20.91 | 21.41 |
| 3 – Month | 21.74 | 21.99 |
| 6 – Month | 21.78 | 22.03 |
| 9 – Month | 21.82 | 22.32 |
| 1 – Year | 21.84 | 22.34 |
Market participants closely monitor KIBOR rates as they serve as a key benchmark for lending and borrowing costs in Pakistan’s banking sector. Changes in these rates directly influence financing costs for businesses, corporate borrowing, consumer loans and investment decisions across the economy. Higher KIBOR levels generally reflect a tighter monetary policy stance adopted by the State Bank of Pakistan to control inflationary pressures and stabilize the external account.
Analysts said the prevailing interest rate environment continues to impact demand for private sector credit, while banks remain cautious in extending financing amid economic uncertainty. Businesses dependent on working capital financing are also facing higher borrowing costs, adding pressure on operational expenses.
The interbank market remained active during the session as financial institutions adjusted liquidity positions in line with monetary policy expectations. Investors and traders are expected to keep a close watch on upcoming SBP policy announcements and inflation data, which may influence the future direction of KIBOR rates in the coming weeks.
