What is the concept of KIBOR?

KIBOR, or Karachi Interbank Offered Rate, is the interest rate at which banks in Pakistan lend to one another for short-term loans. It serves as a benchmark for various financial products, including loans and mortgages, influencing the overall lending rates in the economy. KIBOR rates are calculated daily based on the rates submitted by a panel of banks, reflecting market conditions and liquidity. It plays a crucial role in the monetary policy framework of Pakistan.