Karachi, March 31, 2026 – The Karachi Interbank Offered Rates (KIBOR) recorded a significant upward trend during March 2026, reflecting tightening liquidity conditions and increasing pressure on borrowers across Pakistan’s financial sector.
The rise in KIBOR rates directly impacts corporate and consumer lending, as most floating-rate loans in Pakistan are benchmarked against these rates. The increase indicates a higher cost of borrowing, which may slow down investment and economic activity if the trend continues.
KIBOR Rates – March 31, 2026
| Tenor | Bid | Offer |
| 1 Week | 10.39 | 10.89 |
| 2 Week | 10.41 | 10.91 |
| 1 Month | 10.65 | 11.15 |
| 3 Month | 11.24 | 11.49 |
| 6 Month | 11.34 | 11.59 |
| 9 Month | 11.49 | 11.99 |
| 1 Year | 11.52 | 12.02 |
KIBOR Rates – February 27, 2026
| Tenor | Bid | Offer |
| 1 Week | 10.32 | 10.82 |
| 2 Week | 10.32 | 10.82 |
| 1 Month | 10.30 | 10.80 |
| 3 Month | 10.34 | 10.59 |
| 6 Month | 10.36 | 10.61 |
| 9 Month | 10.35 | 10.85 |
| 1 Year | 10.37 | 10.87 |
Analysis
The comparison between February and March 2026 shows a clear upward shift across all tenors. The 1-month tenor rose by approximately 35 basis points, while the 1-year tenor increased by around 65 basis points. This broad-based rise suggests tightening monetary conditions and expectations of sustained inflation or policy rate adjustments.
Financial experts believe that rising KIBOR rates may lead to higher loan repayments for businesses and individuals, potentially affecting housing loans, corporate financing, and consumer credit. Banks may also adjust lending rates accordingly, making borrowing more expensive in the near term.
Disclaimer
This report is for informational purposes only and does not constitute financial advice. Rates are subject to change based on market conditions and regulatory policies.