KARACHI: September 28, 2022 – The State Bank of Pakistan (SBP) on Wednesday released the latest Karachi Interbank Offered Rates (KIBOR), a key benchmark used by banks to determine lending rates for commercial transactions. The newly issued KIBOR reflects interbank borrowing costs across various tenors, from one week to one year.
KIBOR is a critical tool in Pakistan’s financial system, used extensively in commercial loan agreements, trade financing, and business contracts. The rates are determined based on average interest rates at which major banks lend unsecured funds to one another in the Karachi money market.
As per the SBP’s release, the KIBOR rates as on September 28, 2022, are as follows:
Tenor
Bid (%)
Offer (%)
1 – Week
14.64
15.14
2 – Week
14.77
15.27
1 – Month
15.00
15.50
3 – Month
15.60
15.85
6 – Month
15.72
15.97
9 – Month
15.77
16.27
1 – Year
15.81
16.31
The updated KIBOR rates show continued tight liquidity in the banking sector, reflecting prevailing monetary policy conditions and inflationary pressures.
Businesses and financial institutions rely on KIBOR as a reference for pricing loans and credit facilities. Changes in KIBOR directly impact the cost of borrowing, especially for corporate clients and government contractors.
The next KIBOR update by SBP will offer further insight into the direction of interbank lending trends amid Pakistan’s evolving economic conditions.