What T-bills and PIBs are
Treasury bills (T-bills) are short-term debt issued by the Government of Pakistan. They pay no coupon. You buy a T-bill below its face value and receive the full face value at maturity. The gap between the two is your return.
Pakistan Investment Bonds (PIBs) are longer-term government bonds. They come in fixed-rate versions, which pay a set coupon on a regular schedule, and floating-rate versions, whose coupon is reset against a benchmark.
Both are sold through auctions that the State Bank of Pakistan (SBP) runs for the government. Available tenors, auction calendars and cut-off yields are published by the SBP. Check the current calendar and results on the SBP website before you plan a purchase.
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How T-bill yield works
Yield is the return you earn, shown as an annual rate. For a T-bill, it comes from the discount. A deeper discount means a higher yield.
T-bill yields usually move with the SBP policy rate, which is the main interest rate the central bank sets. The latest decision on record: SBP policy rate raised by 50 bps to 12% with effect from 27.10.2026 (MPC). Auction cut-off yields can sit above or below the policy rate, depending on what the market expects rates to do next. For background on rate decisions, see SBP rates and economy.
Key terms:
| Term | Meaning |
|---|---|
| Face value | The amount paid back at maturity |
| Discount | How far below face value you pay |
| Cut-off yield | The highest yield the government accepts at an auction |
| Coupon | The periodic profit paid on a PIB |
| Maturity | The date the government repays the face value |
More definitions are in the trading glossary.
Risks to understand
- Price risk on PIBs. If market rates rise after you buy a fixed-rate PIB, its market price falls. You only avoid this loss if you hold it to maturity. If you sell early, you may get less than you paid.
- Reinvestment risk on T-bills. When a T-bill matures, the yield on a new one may be lower.
- Liquidity. Selling before maturity depends on your bank buying it back or on finding a buyer in the secondary market. The price you get may be lower than you expect.
- Tax. Profit is taxable. Withholding tax rates differ for filers and non-filers. Check the current rates with the FBR and your bank.
These are government obligations, so the risk differs from a bank deposit or a fund. It is not the same as having no risk.
How to buy T-bills in Pakistan
Through a bank (residents)
- Open an Investor Portfolio Securities (IPS) account with a bank that offers it. Banks acting as primary dealers bid in SBP auctions.
- Choose between a non-competitive bid and a secondary-market purchase. With a non-competitive bid, you accept the auction's cut-off yield. With a secondary-market purchase, you buy from the bank's own holdings at its quoted price.
- Fund the purchase from your account. The securities are then held in your IPS account.
Minimum amounts, bank charges and the documents you need differ from bank to bank. Ask your bank for its current terms in writing.
Through Roshan Digital Account (non-residents)
Non-resident Pakistanis with a Roshan Digital Account (RDA) can access government securities through participating banks. Eligible products, currencies and repatriation rules are set by the SBP and the bank. Confirm them with your RDA bank and on the SBP website.
Indirectly, through funds
Money market and income funds hold T-bills and PIBs. You buy fund units instead of the securities themselves. Fund returns and fees are published through MUFAP. See mutual funds in Pakistan.
Islamic alternative
T-bills and PIBs pay interest. Investors who want Shariah-compliant government paper usually look at Government of Pakistan Ijara Sukuk, which are issued through SBP auctions and sold by Islamic banks. Read more in Islamic finance and payments, tax, Islamic banking.
How they compare with other options
| Option | Who issues or offers it | Where to read more |
|---|---|---|
| T-bills / PIBs | Government, via SBP auctions | This page |
| National Savings certificates | CDNS | National Savings schemes |
| Bank term deposits | Commercial banks | Bank deposits |
| Money market funds | Asset management companies | Mutual funds |
None of these is a leveraged product. Leveraged forex and CFD trading is a different activity and can lose money fast. For the wider picture, see Saving, Investing, Loans and Law and regulators.
Frequent questions
What is the difference between a T-bill and a PIB?
A T-bill is short-term and sold at a discount with no coupon. A PIB is longer-term and pays periodic coupons, at either a fixed or a floating rate.
Where do I find the current T-bill yield?
In the auction results the SBP publishes on its website. Bank quotes in the secondary market can differ from the auction cut-off.
Can I buy T-bills without a bank?
Individuals normally buy through a bank's IPS account, or indirectly through a fund. Check with your bank for its current process.
Can I lose money on Pakistan Investment Bonds?
Yes, if you sell a fixed-rate PIB before maturity after market rates have risen. If you hold it to maturity, you receive the face value plus the coupons.
Is profit on T-bills taxed?
Yes. Withholding tax applies, and the rate depends on your filer status. Check the current rates with the FBR.