A relative of mine retired last year and put her gratuity into a bank term deposit, simply because that was the only product the branch officer mentioned. Months later she learned that the same government that backs her bank’s largest borrowings sells its own debt directly to ordinary savers, through auctions anyone with a bank account can join. Treasury Bills and Pakistan Investment Bonds are not an institutional secret. They are a product most retail investors have never been shown. This article helps you know how to buy T-Bills and PIBs in Pakistan.
The timing makes this worth understanding now. In January 2026, the 12-month T-bill yield fell to about 10 percent, a four-year low. By the end of September it had climbed to roughly 12.5 percent. Anyone who understood how these instruments work could see both moves coming from the SBP policy path. This guide explains how T-bills and PIBs work, how to buy them yourself, and an honest look at what they actually earn once tax and inflation are counted.
Table of Contents
What T-Bills and PIBs Are
Before we deep dive into how to buy T-Bills and PIBs in Pakistan, you need to learn what T-bills and PIBs are. Both are loans you make to the Government of Pakistan, sold through auctions run by the State Bank of Pakistan. They differ in how they pay you.
| Feature | Market Treasury Bill (T-bill) | Pakistan Investment Bond (PIB) |
|---|---|---|
| Tenor | 1, 3, 6, and 12 months | Several years, with recent auctions covering 2, 3, 5, and 10 years |
| How it pays | Sold at a discount, redeemed at face value; no coupon | Fixed or floating coupon paid twice a year, with principal at maturity |
| Return source | The gap between your purchase price and face value | Coupon income, plus any price change if you sell early |
| Main risk | Reinvestment risk when it matures | Price risk if you sell before maturity and rates have risen |
Both are held electronically, with SBP as the ultimate custodian, in an account called an IPS account. That custody setup is why government securities sit in a different risk category from broker-held shares, a point connected to the investor protection discussion elsewhere in this series.
What They Are Paying Right Now
All figures below are from SBP auctions and move at every auction. At the time of writing in early October 2026, the next scheduled T-bill auction was on 14 October.
| Auction | 3-Month | 6-Month | 12-Month |
|---|---|---|---|
| 21 January 2026 (four-year low) | 9.90% | n/a | 10.00% |
| 16 September 2026 | 11.38% | 11.70% | 12.00% |
| 30 September 2026 (cut-off yields) | 11.99% | 12.45% | 12.49% |
At the 30 September auction, SBP raised PKR 853 billion against a target of PKR 700 billion, a sign of strong demand. For PIBs, the 18 September 2026 auction produced cut-off yields of roughly 12.4 to 12.5 percent across the 2-year to 10-year range, which means the curve was nearly flat: you were paid almost the same to lend for ten years as for two.
The rise from January’s 10 percent to September’s 12.5 percent follows the rate path described in the SBP monetary policy article in this series: a cutting cycle that paused, followed by renewed upward pressure from the oil shock. T-bill yields move with expectations about that policy rate, which is why they react within days to a change in the SBP’s stance.
How to Buy: The IPS Account and InvestPak
SBP says an IPS account is compulsory for buying government securities. It is a custodial account held at your bank, and you do not need a broker.
In November 2025, SBP launched the InvestPak portal and mobile app, which digitized the process. Individuals, joint account holders, and corporates with a PKR bank account can register using their IBAN, request an IPS account through the portal, place bids in auctions, and buy or sell in the secondary market without visiting a branch. Banks that reject a registration must give SBP a justification.
Step by step:
- Check your eligibility. Any individual with a PKR bank account qualifies.
- Register on InvestPak at investpak.sbp.org.pk or through the mobile app, using your IBAN. Declare whether you already hold an IPS account; if not, request one through the portal.
- Check the SBP auction calendar for T-bills and PIBs, published as PDFs on the SBP website.
- Place a non-competitive bid before the cut-off. Banks typically need it one working day before the auction, and some need more notice, so confirm your bank’s deadline.
- Wait for the result. SBP announces results after the auction. If your bid is accepted, your bank debits your account and credits the security to your IPS account.
- Collect at maturity. A T-bill’s face value is credited to your account at maturity; a PIB pays coupons twice a year and principal at the end.
- Sell early if you must, through your bank in the secondary market at the prevailing yield, which may be above or below your purchase price.
Competitive vs Non-Competitive Bids
| Competitive Bid | Non-Competitive Bid | |
|---|---|---|
| What you submit | An amount and the yield you want | An amount only |
| What you get | Allotment only if your yield is accepted, so execution is uncertain | The auction’s weighted average yield |
| Suited to | Institutions and experienced bidders | Retail investors |
| Limits | None specific | Sized in relation to the auction target; one bid per investor per tenor |
When I compare these for beginners, the point most people miss is this: the cut-off yield in the news headline is not what a retail bidder earns. A non-competitive bidder receives the weighted average, which is usually a little lower. On 30 September, the 12-month cut-off was 12.49 percent while the weighted average was about 12.35 percent. Plan around the lower number.
Some third-party guides report a minimum of PKR 5,000 for T-bills on InvestPak, but banks can set their own minimums and fees on IPS accounts, so confirm both in writing before you open one.
A Worked Example: A 12-Month T-Bill
At the 16 September 2026 auction, non-competitive bids for the 12-month bill were accepted at a price of PKR 89.3887 per PKR 100 of face value, matching a weighted average yield of about 11.9 percent.
- You buy PKR 1,000,000 of face value.
- You pay about PKR 893,887 (1,000,000 multiplied by 0.893887).
- At maturity you receive PKR 1,000,000.
- Your gain is PKR 106,113, about 11.87 percent on your outlay for the year.
There is no coupon and no monthly income. Your entire return arrives at maturity, which suits a lump sum you do not need for a year. If you need regular income instead, a PIB’s twice-yearly coupons or a National Savings monthly-income certificate fits better.
The Risk People Overlook: PIB Prices Move
Holding a T-bill to maturity involves almost no price risk. A PIB is different, because its price changes with market yields if you sell before maturity.
Consider a 10-year PIB with a 12.5 percent coupon, bought at par (PKR 100), using approximate figures:
| If market yields… | The bond’s price becomes about | Change |
|---|---|---|
| Rise 2 points to 14.5% | PKR 89.6 | About 10% loss |
| Stay at 12.5% | PKR 100 | None |
| Fall 2 points to 10.5% | PKR 112.2 | About 12% gain |
This is the same dynamic that hit anyone who locked into long bonds near January’s lows, only to see yields climb 2.5 points by September. If you hold to maturity, the price swings do not matter, because you collect the coupons and full principal. If you may need the money early, they matter a great deal. This is why long PIBs suit money you will not touch, and short T-bills suit money you might.
Honest Math: What You Actually Keep
Government backing removes credit risk in the sense that matters here: the state is the borrower. It does not remove inflation or tax. Here is the retail reality using the 12-month weighted average of 12.35 percent from 30 September, inflation of roughly 11.1 percent from the mid-2026 reading discussed elsewhere in this series, and an assumed 15 percent withholding on the profit:
| Step | Rate |
|---|---|
| Weighted average yield | 12.35% |
| Real yield before tax (minus 11.1% inflation) | about +1.25 points |
| Yield after an assumed 15% tax | about 10.50% |
| Real yield after tax | about negative 0.6 points |
Tax on profit from government securities is withheld at source, and the rate depends on your filer status. The Finance Act 2026 also raised withholding on capital gains from selling debt securities off-exchange through IPS accounts from 15 to 20 percent, as noted in the budget article in this series. Confirm the exact rate that applies to you with your bank, because they deduct it for you.
My assessment: at current yields, T-bills and PIBs roughly protect your purchasing power after tax but do not grow it. They are a strong place to park money safely for a defined period, comparable in role to the fixed deposits and National Savings certificates discussed earlier in this series. They are not a substitute for the growth assets in a long-term plan.
How They Compare to the Alternatives
| Option | Indicative Yield | Liquidity | Note |
|---|---|---|---|
| 12-month T-bill | 12.35% weighted average (30 Sep 2026) | Sell through the bank, at the prevailing yield | Sovereign backing; tax withheld |
| 3-year PIB | 12.49% cut-off (18 Sep 2026) | Price changes if sold early | Coupon every six months |
| National Savings Regular Income Certificate | 11.82% (mid-2026 revision; verify current) | Early encashment rules apply | Monthly income; government-backed |
| Bank term deposit | Roughly 12 to 14% for one year (mid-2026 range; varies by bank) | Premature break reduces the rate | Protection limits apply per depositor |
| Money market fund | Floats with market yields | Typically redeem within a day or two | Fund-level fees and tax apply |
These are pre-tax and drawn from different dates, so they are a starting point for comparison, not a ranking. Check each current rate before you decide.
A Simple Way to Use T-Bills: Build a Ladder
Instead of putting everything into one 12-month bill, split the amount across 3, 6, and 12-month tenors. As each matures, you can reinvest at the prevailing yield or take the cash. This reduces the risk of reinvesting your entire amount on one unlucky day, the same idea behind laddered fixed deposits and National Savings certificates.
Common Mistakes Retail Investors Make
Treating “government-backed” as meaning “no risk.” Credit risk is the state’s, but rate risk, inflation risk, and tax all remain, particularly for long PIBs.
Buying a long PIB with money they may need within a few years. Price risk turns a safe-looking asset into a possible loss if you must sell after yields have risen.
Planning around the headline cut-off yield. Retail non-competitive bidders earn the weighted average, which is lower.
Missing the bank’s cut-off for a non-competitive bid. The bid usually has to be in before the day of the auction, and a missed deadline means waiting for the next one.
Comparing pre-tax figures across products. The filer status, withholding rate, and product-specific rules change the real outcome.
Forgetting what happens at maturity. Your money comes back as cash, and the yield on the next auction may be higher or lower than the one you locked in.
In Summary
Treasury Bills and Pakistan Investment Bonds give ordinary savers direct access to the same securities banks and funds buy, through an IPS account and, since late 2025, a digital portal run by the State Bank itself. They are straightforward, sovereign-backed, and, in a year when yields rose by roughly 2.5 points, a reminder of how much the interest rate environment moves under your feet.
The relative in the opening story eventually opened an IPS account and now rolls part of her savings through T-bills, keeping a National Savings certificate for monthly income. The lesson is not that T-bills beat everything else. It is that the choice should be made knowingly, with the after-tax, after-inflation numbers in front of you rather than only the one the bank officer happens to mention.
Further reading and official sources:
- State Bank of Pakistan InvestPak portal for government securities: investpak.sbp.org.pk
- SBP Market Treasury Bill auction calendar: sbp.org.pk
- SBP investor guide to Pakistan Investment Bonds: sbp.org.pk
