KIBOR Rate Tracker Pakistan (Live SBP Rates 2026)
KIBOR (Karachi Interbank Offered Rate) is Pakistan's daily benchmark lending rate, fixed each business day across tenors from 1 week to 1 year by the Financial Market Association of Pakistan. Banks price floating-rate car, personal, and mortgage loans as KIBOR plus a spread, so KIBOR movements directly change variable loan installments, while fixed-rate loans stay unaffected.
Daily KIBOR Rates & Interest Simulator
Simulate how future SBP rate cuts (100 to 300 bps) reduce your monthly loan installment:
KIBOR Floating Rate Sensitivity Simulator
Model how upcoming State Bank of Pakistan monetary policy rate revisions will impact your monthly EMI
| Rate Scenario | 1Y KIBOR | Effective APR | Monthly EMI (PKR) | EMI Impact vs Current |
|---|---|---|---|---|
| -3.00% SBP Rate Cut | 9.16% | 12.16% | PKR 44,651 | -PKR 3,097 / mo |
| -2.00% Rate Cut | 10.16% | 13.16% | PKR 45,670 | -PKR 2,078 / mo |
| -1.00% Rate Cut | 11.16% | 14.16% | PKR 46,703 | -PKR 1,045 / mo |
| Current 1Y KIBOR (12.16%) | 12.16% | 15.16% | PKR 47,748 | Baseline |
| +1.00% Rate Hike | 13.16% | 16.16% | PKR 48,806 | +PKR 1,058 / mo |
| +2.00% Rate Hike | 14.16% | 17.16% | PKR 49,877 | +PKR 2,129 / mo |
| +3.00% SBP Tightening | 15.16% | 18.16% | PKR 50,961 | +PKR 3,213 / mo |
State Bank of Pakistan KIBOR Fixing Matrix (Bid/Offer Spreads)
Financial Market Association of Pakistan (FMAP) daily benchmark fixings as of August 2026:
| Tenure | Bid Rate (% p.a.) | Offer Rate (% p.a. - Lending Benchmark) | Spread (bps) | Primary Loan Usage |
|---|---|---|---|---|
| 1 Month | 11.45% | 11.70% | 25 bps | Short-Term Working Capital Lines |
| 3 Month | 11.47% | 11.72% | 25 bps | Commercial SME Running Finance |
| 6 Month | 11.56% | 11.81% | 25 bps | Corporate Facilities & Auto Loans |
| 1 Year (Consumer Standard) | 11.91% | 12.16% | 25 bps | HBL Car Loans, Mortgages, Solar Loans |
KIBOR vs SBP Policy Rate: Why They Don't Always Move Together
The SBP policy rate is a monetary policy tool set at scheduled MPC meetings; KIBOR is a market-determined interbank rate that reflects actual liquidity conditions and inflation expectations day to day. This means KIBOR can trade above or below the policy rate depending on how tight or loose interbank liquidity is at a given time — a gap that surprises borrowers expecting the two to track in perfect lockstep.
How Banks Use KIBOR to Price Your Loan
Your total floating rate is KIBOR (usually the 1-Year offer rate) plus a bank spread that varies by product and customer category, typically 2.5% to 4.5% for consumer car and home financing. Fixed-rate loans, where available, are locked at signing and don't move with KIBOR at all — check which structure your specific loan uses on the car loan calculator or relevant product page.
Most consumer loans reprice only once a year, on the loan's disbursement anniversary — not every time the daily published rate changes — so a KIBOR move today won't necessarily affect your installment until your next annual reset.
For a deeper explanation of KIBOR's role in Pakistani banking, see Understanding KIBOR Rates on HBL Loans.
Frequently Asked Questions
What is KIBOR and why does it affect my loan installment?
KIBOR (Karachi Interbank Offered Rate) is the official benchmark interest rate at which commercial banks lend funds to each other in Pakistan. Most Pakistani bank loans are floating (e.g. 1-Year KIBOR + 3% margin), meaning your monthly installment adjusts up or down whenever the KIBOR rate resets on your loan anniversary.
How often does my KIBOR rate reset on a car or home loan?
For consumer auto and mortgage loans, banks typically reset the KIBOR rate once every 12 months on the annual anniversary of your loan disbursement.
Which KIBOR tenor matters for my car or personal loan?
1-Year KIBOR is the tenor that matters for most consumer car and personal loans, since that's the benchmark banks use for annual repricing. Shorter tenors (1-month, 3-month) mainly matter for short-term working capital and interbank lending, not your household loan.
Does KIBOR affect every loan, or only floating-rate loans?
Only floating-rate loans. If you've chosen a fixed-rate product (some HBL personal and home financing options offer this), your installment stays the same regardless of KIBOR movement. Floating-rate loans priced as KIBOR plus a spread move whenever the benchmark resets.
Why doesn't KIBOR always move in lockstep with the SBP policy rate?
KIBOR reflects actual interbank liquidity conditions and inflation expectations, not just the announced policy rate. When banks expect tighter liquidity or persistent inflation, KIBOR can trade above the policy rate even without a fresh SBP announcement, and vice versa when liquidity is abundant.
How is my bank markup calculated from KIBOR?
Your total rate is KIBOR (usually 1-Year) plus a bank spread, which varies by product and your customer category — typically 2.5% to 4.5% for car and home loans. If 1-Year KIBOR is 12.16% and your spread is 3%, your effective rate is roughly 15.16%.
When is 1-Year KIBOR published, and when does my loan actually reprice?
1-Year KIBOR is fixed daily by the Financial Market Association of Pakistan, but your loan reprices only once a year, on your loan's specific anniversary date — not automatically every time the published rate changes.