KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as on October 20, 2022.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 14.98 | 15.48 |
| 2 – Week | 15.01 | 15.51 |
| 1 – Month | 15.08 | 15.58 |
| 3 – Month | 15.51 | 15.76 |
| 6 – Month | 15.55 | 15.80 |
| 9 – Month | 15.58 | 16.08 |
| 1 – Year | 15.60 | 16.10 |
The Karachi Interbank Offered Rate (KIBOR) is a key benchmark used by banks and financial institutions in Pakistan to price loans and other financial products. It reflects the average lending rates quoted by commercial banks in the interbank market for different maturities.
Changes in KIBOR often mirror the State Bank of Pakistan’s monetary policy stance and prevailing liquidity conditions in the banking system. Businesses, corporate borrowers, and investors closely monitor KIBOR movements as they influence borrowing costs, financing decisions, and returns on floating-rate instruments.
A higher KIBOR generally results in increased financing costs for borrowers, while a lower benchmark can reduce debt servicing expenses. Financial institutions also use KIBOR as a reference for pricing corporate loans, trade finance facilities, and other variable-rate credit products across Pakistan’s banking sector.
Market participants also watch KIBOR trends to gauge expectations regarding future interest rate movements, inflation outlook, and overall liquidity conditions in the domestic financial market.