Karachi, July 18, 2025 – The State Bank of Pakistan (SBP) has officially notified the latest Karachi Interbank Offered Rates (KIBOR) applicable for Friday, July 18, 2025.
These KIBOR rates, which serve as a benchmark for commercial lending across the banking sector, are updated daily to reflect current market conditions.
According to the SBP, the KIBOR is a vital reference point used by banks and financial institutions to determine interest rates on corporate and commercial loans. The rates are based on the average quotes submitted by leading banks in the interbank market, and they serve as a barometer of short-term borrowing costs in the country.
Below are the KIBOR rates released by the SBP for various tenors:
| Tenor | Bid | Offer |
| 1 – Week | 10.93% | 11.43% |
| 2 – Week | 10.89% | 11.39% |
| 1 – Month | 10.83% | 11.33% |
| 3 – Month | 10.80% | 11.05% |
| 6 – Month | 10.76% | 11.01% |
| 9 – Month | 10.71% | 11.21% |
| 1 – Year | 10.66% | 11.16% |
The SBP emphasized that these rates are intended to guide the banking industry and commercial borrowers in determining loan pricing and deposit structures. The KIBOR is particularly relevant for floating-rate loan agreements, where the interest rate fluctuates based on movements in the market.
Financial analysts note that the current KIBOR structure reflects relative market stability and moderate expectations of interest rate movements. The spread between bid and offer rates also suggests a healthy level of liquidity within the banking system.
As the central regulator, the SBP plays a critical role in monitoring and maintaining transparency in interbank lending. Regular publication of KIBOR rates helps build market confidence and ensures a standardized benchmark for credit markets.
In the broader context of monetary policy, the SBP’s ongoing efforts to maintain transparency and regulate interest rate dynamics are crucial in supporting economic growth and fostering financial discipline.