KARACHI - Shaukat Tarin, Advisor to PM on Finance, has asked commercial banks' presidents to trim the rate of Karachi Interbank Offer Rates (KIBOR) to provide relief to the borrowers, to gear up economic activity and to reduce the cost of doing business, The Nation learnt. Tarin raised this issue with the top bankers in a meeting held at State Bank's premises in Karachi on Monday. It is pertinent to mention here that SBP had already warned the commercial banks to reduce the widening gap between the discount rate and banks' average ask offer rates to the borrowers. On Monday, Tarin held an important meeting with the heads of domestic commercial banks and asked them scale down KIBOR at appropriate level, banking sources told The Nation. While the other day major stock brokers met with Tarin and demanded him to ask the commercial banks to reduce interest rate further by 200 basis points to 11pc amid provide ease in banks' lending and liquidity positions. However, the commercial banks raised their reservations about the "money" made by the investors during the stock-boom period. According to the SBP daily KIBOR statistics, currently, the KIBOR, based on 6-month tenure is around 15pc while the short-term KIBOR for the one week has moved up to 13.12pc in line with hike in discount rate.   It must be noted here that due to current liquidity crunch being faced by the local capital markets over the last few weeks, the industrialists and business community is frequently demanding reduction in KIBOR as the present tight monetary policy has affected the banks' lending ability which resultant to increase in KIBOR.