The 6-month Karachi Inter-Bank Offered Rate (KIBOR) has fallen to 10.86% as of July 25, 2025. This is the lowest rate in the last 41 months (more than 3 years), according to Arif Habib Limited.
Just a day earlier, the rate was 10.87%. The small drop comes after S&P Global upgraded Pakistan’s credit rating from ‘CCC+’ to ‘B-’ with a stable outlook. The upgrade was given due to better financial conditions in the country, improved foreign reserves, and ongoing help from the International Monetary Fund (IMF).
KIBOR is a major benchmark in the lending of money among banks. It currently stands at 14 basis points below the policy rate of the State bank of Pakistan, now at 11%.
This decline in KIBOR is good news to the country in terms of borrowing and investment.
