KIBOR Rate Today in Pakistan: 1-Year at 12.94% and What It Does to Your Loan

The daily figures are in KIBOR on 6 November. So when a bank quotes you "1-year KIBOR plus 4%", that now means about 16.94% a year. That single number decides your monthly instalment, and it can change at your loan's reset date.

KIBOR rates today in Pakistan

SBP publishes two KIBOR figures for each period, a bid and an offer. Loans use the offer side. These are the rates on SBP's sheet for 6 November 2026. SBP's policy rate has been 12% since 27 October 2026.

SBP's interest rate corridor is a ceiling of 13% and a floor of 11% around the 12% policy rate, as we reported from SBP's circular in the 26 October rate rise. The 1-year KIBOR offer sits 0.94 point above the policy rate.

KIBOR is the rate banks charge each other

KIBOR stands for Karachi Interbank Offered Rate. It is the rate at which banks say they will lend to each other for a set period, such as 3 months, 6 months or 1 year. SBP publishes it every working day.

The bid is the rate at which banks would borrow. The offer, also called the ask, is the rate at which they would lend. Your loan is built on the offer, because that is the bank's cost of lending money out.

KIBOR is not the same as the policy rate. The policy rate is SBP's own rate, set by its Monetary Policy Committee. KIBOR follows it closely but moves every day with the market. How a policy rate decision feeds into your instalment is explained in what the SBP policy rate does to your loan EMI.

Banks set car, home and personal loan rates as KIBOR plus a spread

Your loan rate is KIBOR plus a spread, the bank's own margin. KIBOR is the same for everyone on the same day. The spread is what differs between banks and between customers.

These spreads are from each bank's own page on 6 October 2026, so check them with the bank for the current figure. We added them to the KIBOR of 6 November. Not every loan is variable. Meezan's Car Ijarah has a fixed table of 13.38% to 13.46%, and HBL shows a promotional fixed 11.99% on its car loan. More banks are compared in what a car loan in Pakistan costs, and personal loan rates in personal loans from 8 banks compared.

A variable loan resets on a fixed date, not every day

A daily KIBOR move does not change your instalment the next day. A variable loan picks up a new KIBOR only on its reset date, usually once a year or every 6 months, and the date is in your loan papers.

Here is what the banks' own pages say:

• Meezan Easy Home charges KIBOR plus 3% for the first year, using the KIBOR announced on the first working day of the month. After that it reprices once a year on 1-year KIBOR plus the same margin, with a floor of 8% and a cap of 30%.
• HBFC's Ghar Sahulat Scheme uses the KIBOR of the last working day of the previous month and reprices yearly.
• Allied Bank's car finance is variable and resets once a year.
• BankIslami's auto finance example in its Key Fact Statement uses 6-month KIBOR with a reset every 6 months.

The fixing date matters. A loan approved this week may still use the KIBOR from the start of the month, not today's figure.

A 1 point KIBOR rise adds about Rs 700 to Rs 1,000 a month on a Rs 2 million car loan

On a Rs 2 million car loan over 3 years, each 1 point of KIBOR is worth roughly Rs 700 to Rs 1,000 a month. On a Rs 10 million home loan over 20 years, it is worth about Rs 7,500 a month.

Our calculation, using 1-year KIBOR of 12.94% plus Bank Alfalah's 3-year spread of 4%:

1. The rate is 12.94% plus 4%, which is 16.94% a year, or 1.41% a month.
2. The standard instalment formula on Rs 2,000,000 over 36 months gives Rs 71,246 a month.
3. At 17.94%, one point higher for the whole loan, the instalment is Rs 72,245. That is Rs 999 more a month and Rs 35,959 more over 3 years.
4. If the rise only comes at the first yearly reset, about Rs 1,441,829 is still owed. Spread over the last 24 months at 17.94%, the instalment becomes Rs 71,940, which is Rs 694 more.
5. A 1 point cut at that reset brings it down to Rs 70,555, which is Rs 691 less.

Home loans feel it much more. On Rs 10,000,000 over 20 years, 15.94% gives Rs 138,676 a month and 16.94% gives Rs 146,224, a gap of Rs 7,548. Try your own numbers in the car loan calculator or the home loan calculator.

The next SBP rate decision is on 14 December 2026

SBP's Monetary Policy Committee next meets on 14 December 2026, on SBP's schedule. It raised the policy rate by 0.5 point to 12% on 26 October, with effect from 27 October. A cut or a rise would move KIBOR, and from there your next reset.

The rise is covered in SBP's move to 12%, and the next date in SBP's next monetary policy meeting. If you are about to sign a variable loan, ask the bank which KIBOR date it will use and when the first reset falls.

Common questions

What is the KIBOR rate today in Pakistan?

SBP's sheet for 6 November 2026 shows 1-year KIBOR at 12.94%, 6-month at 12.57% and 3-month at 12.37% (offer side).

Which KIBOR do car and home loans use?

Most use 1-year KIBOR, offer side. MCB's home loan and BankIslami's auto finance use 6-month KIBOR.

Is KIBOR the same as the SBP policy rate?

No. The policy rate is 12%, set by SBP. KIBOR is the market rate between banks and was 12.94% for 1 year on 6 November 2026.

Does my instalment change when KIBOR changes?

Only on a variable loan, and only on its reset date. A fixed rate loan stays the same for its whole term.

Where can I check KIBOR myself?

On sbp.org.pk. SBP's home page has shown a KIBOR table with bid and offer for 3, 6 and 12 months, and SBP also posts a daily KIBOR sheet with seven tenors from 1 week to 1 year.

Can I negotiate the spread?

Banks publish different spreads for existing and new customers, salaried and self-employed. Ask which group you fall in.

How we verified this

What we checked and where we read it.

Last checked on 7 November 2026. KIBOR was read on the State Bank of Pakistan's sheet for 6 November 2026, and the 12% policy rate in its Monetary Policy Statement of 26 October 2026. The corridor and the next meeting date are from SBP's pages as published in October. Spreads and reset rules were read on 6 October 2026 on the banks' own product pages, Key Fact Statements and FAQs: Bank Alfalah, MCB, UBL, Meezan Bank, HBL, Allied Bank, BankIslami and HBFC. The instalment figures are our own calculations.