Karachi: The State Bank of Pakistan (SBP) announced that on June 4, 2025, there was significant activity in its Overnight Reverse Repo Facility, with nine institutions engaging in transactions amounting to Rs. 418,500 million. In contrast, there were no recorded transactions in the Overnight Repo Facility for that date.
The announcement from the SBP's Domestic Markets and Monetary Management Department highlighted the robust use of the Reverse Repo facility, which serves as a ceiling for overnight interest rates. This level of activity indicates a substantial liquidity requirement among financial institutions.
The Karachi Interbank Offered Rate (KIBOR) showed the following rates: the one-week bid and offer rates stood at 10.92% and 11.42%, respectively. The one-month rates were slightly lower, with bids at 10.84% and offers at 11.34%. For the three-month period, the rates were 10.90% bid and 11.15% offer. The six-month and nine-month tenors saw similar rates, with bids at 10.91% and 10.92%, and offers at 11.16% and 11.42%, respectively. The one-year KIBOR rates were recorded at 10.93% for bids and 11.43% for offers.
The data underscores the prevailing interest rate environment in Pakistan, providing insights into the short-term lending and borrowing trends within the financial sector. The figures reflect the ongoing economic dynamics and the SBP's role in managing liquidity and interest rates in the market.