Karachi: Short-term lending rates in Pakistan continued to fluctuate, with the Karachi Interbank Offered Rate (KIBOR) showing mixed signals on August 12, 2025, according to data released by the State Bank of Pakistan. The one-week rate saw the most significant change, climbing to 10.86% bid and 11.36% offer.

This rise in short-term borrowing costs suggests potential liquidity pressures in the money market. Two-week rates also experienced an upward trend, reaching 10.84% bid and 11.34% offer.

Longer-term rates showed greater stability. One-month KIBOR settled at 10.80% bid and 11.30% offer. Both the three-month and six-month rates held steady at 10.81% bid and 11.06% offer.

The nine-month and one-year rates presented a slightly different picture. The nine-month KIBOR stood at 10.75% bid and 11.25% offer, while the one-year rate registered 10.76% bid and 11.26% offer. These figures indicate a degree of uncertainty in the market regarding longer-term funding costs.

The volatility in KIBOR has implications for various sectors of the economy, impacting borrowing costs for businesses and individuals. Market analysts will be closely watching these trends to gauge the overall health of the financial system and the potential impact on future economic activity.