KARACHI – Karachi Interbank Offered Rate Rates saw changes after tweak in interest rate. It remains in limelight over flow of money between banks, serving as key benchmark, and also impact lending between financial institutions.
As policy rate moved down to 11pc, Karachi Interbank Offered Rate (KIBOR) one-week rate plunged by 91 BPS to 11.43%, while the two-week rate declined by 87 basis points to 11.44%. The one-month rate decreased by 77 basis points to 11.47%, and the three-month KIBOR slid 75 basis points to 11.33%.
For 6-month, 9-month, and 12-month rates falling by 64, 73, and 75 basis points respectively—ending at 11.44%, 11.53%, and 11.51%.
New KIBOR Rates in Pakistan 2025
| Tenor | Change | New KIBOR Rate |
|---|---|---|
| 1 Week | -91 bps | 11.43% |
| 2 Week | -87 bps | 11.44% |
| 1 Month | -77 bps | 11.47% |
| 3 Month | -75 bps | 11.33% |
| 6 Month | -64 bps | 11.44% |
| 9 Month | -73 bps | 11.53% |
| 12 Month | -75 bps | 11.51% |
State Bank of Pakistan slashed its policy rate by 1% to 11%, bringing the total cut to 10 percentage points since June 2024. This decision comes amid sharply declining inflation, which fell to 0.3% year-on-year in April—mainly due to lower prices of essential food items, electricity, and fuel. Core inflation also eased to 8% in April, reflecting weaker demand and a favorable comparison with last year’s high base.
Economic indicators have shown signs of recovery, with GDP growth revised upward to 1.3% in Q1 and 1.7% in Q2 of FY25. The external sector also improved, with a $1.2 billion current account surplus in March driven by record-high remittances.
Despite some pressure from debt repayments, SBP’s foreign reserves remained supported by market purchases. However, the Monetary Policy Committee (MPC) cautioned about global uncertainties, including trade tensions and geopolitical risks. Inflation may rise slightly in the coming months, central bank expects it to stay within the 5–7% target range. The central bank emphasized maintaining a balanced policy approach to support both price stability and sustainable economic growth.
