28 Jul 2026
What is Kibor and why does it matter?
Kibor stands for Karachi Interbank Offered Rate. It is the average rate at which banks in Pakistan lend unsecured funds to each other in the interbank money market.
Each banking day KIBOR is published across several tenors, from Overnight to 5 Years. Because it reflects the cost of money between banks, it is the most widely used benchmark for pricing loans, bonds, deposits and derivatives in Pakistan.
Who uses Kibor?
Corporate treasuries use KIBOR to price working capital and term loans. Banks use it to price Treasury Bills, Term Finance Certificates and interbank deals. Regulators and analysts watch it as a signal of liquidity and policy stance.
Why does it move?
Kibor reacts to the policy rate, liquidity in the banking system, and demand for short-term funds. When the central bank raises rates, KIBOR typically follows. When liquidity is tight, the spread between bid and offer widens.
Want the latest figures? Visit our Today's Rates page.