KARACHI: State Bank of Pakistan (SBP) on Monday issued the Karachi Interbank Offered Rates (KIBOR) as on September 18, 2023.
Following are the latest KIBOR rates:
| Tenor | Bid | Offer |
| 1 – Week | 21.29 | 21.79 |
| 2 – Week | 21.53 | 22.03 |
| 1 – Month | 21.84 | 22.34 |
| 3 – Month | 22.54 | 22.79 |
| 6 – Month | 22.84 | 23.09 |
| 9 – Month | 22.89 | 23.39 |
| 1 – Year | 22.90 | 23.40 |
The Karachi Interbank Offered Rate (KIBOR) is widely used as a benchmark for determining lending rates between banks and for pricing various commercial and consumer financing products in Pakistan. Financial institutions rely on these rates for short-term and long-term borrowing decisions, making KIBOR an important indicator of overall liquidity conditions in the banking sector.
Analysts said the prevailing high rates were aligned with the State Bank of Pakistan’s tight monetary policy stance aimed at controlling inflationary pressures and stabilizing the external account. The elevated borrowing costs continued to impact businesses seeking working capital financing and expansion-related credit facilities.
Market participants closely observe fluctuations in KIBOR as changes often signal expectations regarding future monetary policy adjustments. The interbank market also plays a critical role in maintaining financial stability by enabling banks to efficiently manage liquidity requirements on a daily basis.
Investors and corporate entities generally use KIBOR trends to assess borrowing conditions, financing costs, and the broader economic outlook in the country.
