The 6-Month Karachi Inter-Bank Offered Rate (KIBOR), a key benchmark for lending rates, has dropped to its lowest level in 17 months. This decline is attributed to the recent performance of domestic bonds, particularly the successful T-Bill auction.
The KIBOR decreased by 37 basis points to 18.91 percent, marking the lowest rate since February 2023. The government raised a significant amount of debt through the T-Bill auction, which contributed to lower borrowing costs.
In addition to the three-month T-Bill, the government also raised funds through six-month and twelve-month T-Bills. Overall, the government successfully raised Rs. 354.67 billion through both competitive and non-competitive bids.
The decline in KIBOR is a positive indicator for the economy, as it suggests lower borrowing costs for businesses and consumers. It also reflects the government’s success in managing its debt through the T-Bill auction.