KIBOR Rate Today in Pakistan: 1-Year Offer 12.77% on 21 October, Up 0.09 Points Since 5 October
KIBOR in Pakistan on 21 October 2026: 3-month 12.01%, 6-month 12.44%, 1-year 12.77% offer. See the change since 5 October and what it means for your loan rate.
The 1-year KIBOR offer rate was 12.77% on 21 October 2026, the 6-month rate was 12.44% and the 3-month rate was 12.01%, according to the State Bank of Pakistan (SBP). All three are 0.04 to 0.09 percentage points higher than the rates SBP showed for 5 October. The policy rate is unchanged at 11.50%.
KIBOR, the Karachi Interbank Offered Rate, is the rate banks quote to lend to each other, and most variable car and home loans are priced as KIBOR plus a bank's margin. We read the rates on the SBP home page on the evening of 21 October, where they are labelled "KIBOR as on 21 Oct 26". The earlier figures come from our KIBOR explainer, which read SBP on 6 October.
KIBOR rates on 21 October: 3 months 12.01%, 6 months 12.44%, 1 year 12.77%
SBP shows a bid and an offer for each period. Loans use the offer side, because that is the rate at which banks would lend. On 21 October the offers were 12.01% for 3 months, 12.44% for 6 months and 12.77% for 12 months.
| KIBOR period | Bid, 21 Oct | Offer, 21 Oct | Offer, 5 Oct | Change in offer |
|---|---|---|---|---|
| 3 months | 11.76% | 12.01% | 11.97% | +0.04 points |
| 6 months | 12.19% | 12.44% | 12.39% | +0.05 points |
| 12 months | 12.27% | 12.77% | 12.68% | +0.09 points |
The change column is our arithmetic from SBP's two readings. The 5 October bids were 11.72%, 12.14% and 12.18%. Longer periods rose most, so the gap between the 3-month and 12-month offers widened from 0.71 to 0.76 points.
The policy rate stays at 11.50% and the overnight rate is below it
SBP's page still shows an 11.50% policy rate, with a ceiling of 12.50% and a floor of 10.50% around it. The weighted average overnight repo rate was 11.17% on 20 October, about 0.33 points under the policy rate. The 1-year offer is 1.27 points above the policy rate.
KIBOR is not the policy rate. It follows the policy rate loosely, but it also reflects what banks expect and how much cash they hold. The mechanics are in the SBP policy rate and corridor explainer, and the history of changes is in every policy rate change since 2023.
A loan priced at 1-year KIBOR plus 4% now costs 16.77%
A loan quoted as 1-year KIBOR plus a margin has a rate that moves with the offer. At 12.77%, a margin of 4% gives 16.77%, a margin of 3.5% gives 16.27% and a margin of 3% gives 15.77%. On 5 October the same margins gave 16.68%, 16.18% and 15.68%.
For a Rs 1,000,000 loan repaid over 5 years, the rise of 0.09 points adds about Rs 48 to the monthly instalment. At 16.68% the instalment is about Rs 24,681 and at 16.77% it is about Rs 24,729. These are our calculations from the standard instalment formula, not a bank quote.
- Find the KIBOR tenor your loan uses, 3 months, 6 months or 1 year.
- Find your loan's reset date in the loan papers.
- Add your margin to the offer rate that applies on that date.
- Compare the result with your current rate.
A daily KIBOR move changes your loan only on its reset date
A variable loan picks up a new KIBOR on its reset date, often once a year or every 6 months, not each day. So the 0.09 point rise changes nothing for you today unless your reset falls near now. The date and the KIBOR tenor are in your loan papers.
The wider effect of rate changes on instalments is set out in what the policy rate does to your loan instalment. Your rights if you want to repay a fixed-rate loan early are in the early repayment guide.
Treasury bill and bond yields stay near 12.4% to 12.5%
SBP's latest auction cut-off yields are 11.5003% for 1-month, 11.9999% for 3-month, 12.3989% for 6-month and 12.4999% for 12-month treasury bills, as on 14 October. Fixed-rate PIB cut-offs, as on 18 September, were 12.3990% for 2 years and 12.5% for 10 years.
The 12-month bill yield of 12.4999% sits 0.27 points under the 12-month KIBOR offer, which shows the bank rate carries a premium over the government's borrowing cost. The auction itself is in the 14 October auction result. SBP's page lists the next bills and bonds auctions on its calendar, and we did not read future dates.
Common questions
What is the KIBOR rate today?
On 21 October 2026 the 1-year offer was 12.77%, the 6-month 12.44% and the 3-month 12.01%, per SBP.
Which side of KIBOR do loans use?
The offer side. SBP shows a bid and an offer, and a loan is priced off the offer.
Did KIBOR go up or down?
It went up slightly. The offers are 0.04 to 0.09 percentage points above the 5 October readings.
Is KIBOR the same as the policy rate?
No. The policy rate is 11.50% and is set by SBP's committee. KIBOR is a market rate that moves daily.
Will my instalment change tomorrow?
Not unless your loan resets tomorrow. Variable loans reprice on a set date.
How we verified this
What we checked, where we read it, and what we could not confirm.
We read SBP's home page panel on 21 October 2026, including KIBOR, the policy rate corridor, the overnight repo rate and the latest auction cut-off yields. The 5 October figures come from our earlier KIBOR report, which read the same SBP panel on 6 October. We read no bank's loan page for this report, so the margins here are examples. SBP updates KIBOR every working day, so the figure can change after we checked.
About the author
Public Services and Education Journalist
Fajr Riaz is a journalist and content writer at Pakistan Era, based in Lahore. She covers the questions people meet in everyday life in Pakistan: how a public service works, what a change in the rules means, and where to find a reliable answer.
