KARACHI, October 10, 2023: The State Bank of Pakistan (SBP) on Tuesday released the updated Karachi Interbank Offered Rates (KIBOR) applicable for October 10, 2023, reflecting the ongoing tight monetary stance aimed at containing inflation and stabilizing the exchange rate.
The KIBOR, which serves as a benchmark for lending and borrowing among banks, remains significantly high across all tenors, highlighting the cautious outlook of the financial markets and continued liquidity pressures. The elevated KIBOR rates also influence commercial lending rates, directly affecting businesses and consumers seeking financing.
Financial analysts note that the current KIBOR levels are reflective of the SBP’s tight monetary policy, which remains focused on curbing inflationary pressures. The KIBOR is used widely by banks in pricing corporate loans, and movements in this benchmark often lead to a ripple effect across the economy, impacting sectors reliant on credit.
According to the SBP data, the KIBOR for short-term tenors such as 1-week and 2-week ranged from 21.70% to 22.25%, while medium-term tenors such as 1-month and 3-month stood between 21.83% and 22.35%. Longer tenor rates remained elevated, with the 6-month KIBOR reaching up to 22.78% on the offer side and the 1-year rate hitting a peak of 23.01%.
The following table presents the official KIBOR rates issued by the SBP:
| Tenor | Bid (%) | Offer (%) |
| 1 – Week | 21.70 | 22.20 |
| 2 – Week | 21.75 | 22.25 |
| 1 – Month | 21.83 | 22.33 |
| 3 – Month | 22.10 | 22.35 |
| 6 – Month | 22.53 | 22.78 |
| 9 – Month | 22.50 | 23.00 |
| 1 – Year | 22.51 | 23.01 |
Market participants are closely monitoring the KIBOR trend as it plays a key role in determining the cost of borrowing in the country. A continued high KIBOR environment may tighten credit availability and raise financing costs for the private sector, influencing economic activity.
The SBP will continue to update the KIBOR daily in line with prevailing market conditions and interbank transactions.