KIBOR Rate Today in Pakistan: 1-Year at 12.68% and What It Does to Your Loan

The 1-year KIBOR offer rate is 12.68%, the 6-month rate is 12.39% and the 3-month rate is 11.97%. These are the rates the State Bank of Pakistan (SBP) shows "as on 5 October 2026" on its home page, which we read on 6 October. Most car and home loans in Pakistan are priced as 1-year KIBOR plus a bank's own margin.

So when a bank quotes you "KIBOR plus 4%", today that means about 16.68% 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. On 6 October 2026, SBP's home page showed these rates as on 5 October, next to a policy rate of 11.50%.

The same page shows SBP's interest rate corridor: a ceiling of 12.50% and a floor of 10.50% around the 11.50% policy rate. The 1-year KIBOR offer sits 1.18 points 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.

We read these spreads on each bank's own page on 6 October 2026, and added them to today's KIBOR. 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 12.68% plus Bank Alfalah's 3-year spread of 4%:

1. Today's rate is 12.68% plus 4%, which is 16.68% a year, or 1.39% a month.
2. The standard instalment formula on Rs 2,000,000 over 36 months gives Rs 70,987 a month.
3. At 17.68%, one point higher for the whole loan, the instalment is Rs 71,984. That is Rs 997 more a month and Rs 35,885 more over 3 years.
4. If the rise only comes at the first yearly reset, about Rs 1,440,237 is still owed. Spread over the last 24 months at 17.68%, the instalment becomes Rs 71,680, which is Rs 693 more.
5. A 1 point cut at that reset brings it down to Rs 70,298, which is Rs 689 less.

Home loans feel it much more. On Rs 10,000,000 over 20 years, 15.68% gives Rs 136,730 a month and 16.68% gives Rs 144,252, a gap of Rs 7,521. Try your own numbers in the car loan calculator or the home loan calculator.

The next SBP rate decision is on 26 October 2026

SBP's Monetary Policy Committee next meets on 26 October 2026. It held the policy rate at 11.5% on 14 September, as SBP's home page still shows. A cut or a rise would move KIBOR, and from there your next reset.

What a hold or a cut would mean for borrowers is set out 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?

On 6 October 2026, SBP showed 1-year KIBOR at 12.68%, 6-month at 12.39% and 3-month at 11.97% (offer side), as on 5 October.

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 11.50%, set by SBP. KIBOR is the market rate between banks and was 12.68% for 1 year.

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 the home page of sbp.org.pk, in the KIBOR table under the policy rate. It shows bid and offer for 3, 6 and 12 months.

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, where we read it, and what we could not confirm.

Last checked on 6 October 2026 at about 14:05 PKT. KIBOR, the policy rate and the corridor were read on the State Bank of Pakistan home page, where the KIBOR table was still dated 5 October. Spreads and reset rules were read 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.