KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on July 19, 2022.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 14.41 | 14.91 |
| 2 – Week | 14.50 | 15.00 |
| 1 – Month | 14.63 | 15.13 |
| 3 – Month | 14.89 | 15.14 |
| 6 – Month | 15.44 | 15.69 |
| 9 – Month | 15.50 | 16.00 |
| 1 – Year | 15.53 | 16.03 |
The updated KIBOR rates indicate prevailing liquidity conditions in the banking sector and provide guidance for commercial lending activities across Pakistan’s financial markets. Banks and financial institutions use KIBOR as a benchmark for pricing corporate loans, trade financing, and various consumer credit products.
Market analysts noted that the upward trend in rates reflects expectations of tighter monetary policy amid rising inflationary pressures and global economic uncertainty. Borrowing costs for businesses are likely to remain elevated, particularly for industries dependent on bank financing and working capital facilities. The benchmark rates are also closely monitored by investors to assess future policy direction of the State Bank of Pakistan.
Economists believe inflation, exchange rate movements, and external financing requirements will continue influencing money market conditions in the coming months. Any further policy rate adjustments by the central bank may lead to corresponding changes in KIBOR across different tenors.
