How to buy T-bills and PIBs through InvestPak

Straight to it: Register on InvestPak, link a PKR bank account, request or link an IPS account, and use the portal for eligible primary- or secondary-market instructions. The financial institution still verifies the account and processes requests.

Government securities can be bought at SBP auctions or in the secondary market and held in an IPS account. InvestPak digitises registration, IPS requests, auction bids and secondary-market requests for eligible bank-account holders. This guide explains the workflow and the risks without ranking it against another product.

01What are T-bills and PIBs?

Market Treasury Bills (T-bills) are short-term government debt, commonly issued in 3-month, 6-month and 12-month tenors. They are zero-coupon instruments sold at a discount to face value; the annualised difference between purchase and maturity value is the yield. The InvestPak instrument pages provide current denominations and auction data.

Pakistan Investment Bonds (PIBs) are longer-term securities. Fixed-rate PIBs and several floating-rate structures have different coupon, reset, tenor and auction rules. Use the current instrument page for the exact series rather than assuming every PIB has the same cash-flow schedule.

These are obligations of the Government of Pakistan, not bank deposits. Sovereign credit does not remove inflation, market-price, liquidity, reinvestment, operational or tax risk. A security sold before maturity may realise more or less than its purchase price.

02How yields track the SBP policy rate

Auction yields are market outcomes, not the SBP policy rate. Compare the relevant cut-off yield, weighted-average yield, issue date and maturity in InvestPak's auction results. A difference between a longer-tenor yield and the policy rate can reflect many expectations and risk premiums; it is not a certain forecast of the next policy decision.

Tenor changes the risk profile. Document these scenarios before comparing instruments:

• Reinvestment: a short security matures sooner, and the next available yield may be higher or lower.
• Price sensitivity: a longer fixed-rate security generally moves more when market yields change.
• Cash-flow timing: maturity and coupon dates must match the date funds may be needed.

Do not choose a tenor from a single rate forecast. Stress-test higher and lower yields, early sale, inflation and the inability to reinvest at the original rate.

03What is an IPS account?

Government securities are held in book-entry form through an Investor Portfolio of Securities (IPS) account. InvestPak's FAQ describes the IPS account as mandatory for buying government securities and says it can be opened through a commercial bank, with the request initiated on the portal.

Participating institutions, conventional and Islamic instruments, minimum denominations and fees vary. Use the current institution and instrument information on InvestPak and obtain the bank's written fee schedule before submitting a request.

The official individual-investor guidelines describe portal registration, IBAN validation, contact verification, two-factor authentication and the bank's acceptance or follow-up process. The bank may require additional KYC evidence.

Do not assume the account is free or that every bank applies the same minimum. Include custody, transaction, spread and transfer charges in the net-return calculation.

04Primary auctions vs the secondary market

There are two ways to acquire government securities, and your bank handles both through the same IPS account.

1. Primary auctions

InvestPak publishes active auctions, calendars, results and bid guidance. Competitive and non-competitive bids have different eligibility, pricing and limits, which also vary by instrument. Read the portal's current auction guidelines and the terms of the exact security before entering an instruction.

2. Secondary market purchase

InvestPak can route buy or sell requests to the investor's bank and publishes indicative quotes and benchmarks. A quote is not the face value: price, accrued profit, yield, settlement date, spread and fees all affect cash paid or received. Confirm the executable terms before submitting.

05InvestPak onboarding and transaction flow

1. Register on the official portal. Use contact details associated with the bank account and complete the required verification.
2. Add the PKR bank account. InvestPak validates the IBAN and sends the onboarding request to the financial institution.
3. Request or link an IPS account. The bank may accept, reject with a reason or request further action.
4. Read the exact instrument page. Record denomination, auction method, bid limits, cash-flow rules, tax and maturity.
5. Review live market data. Use the current auction calendar, results and indicative quotes; save the observation date.
6. Enter the instruction. Confirm security, face amount, bid type, funding balance, portal cut-off and any bank fee before authorising with the required security controls.
7. Keep the confirmation. Reconcile cash debited, securities credited, price, yield, settlement date and tax records.
8. Plan maturity or sale separately. A new purchase, rollover or secondary-market sale is a new decision at then-current rates and prices.

06T-bills vs National Savings vs money market funds

Direct securities, National Savings products and money market funds have different legal structures. Populate this table from disclosures dated on the day of comparison:

A money market fund may hold T-bills alongside bank placements and other permitted instruments; it is not identical to owning one T-bill. Compare its current portfolio, total expense ratio, rating and redemption terms in the offering documents and MUFAP data. For CDNS products, use the current profit-rate page. No fixed account-size threshold makes one structure universally preferable.

07Taxes on T-bill and PIB profit

Returns on government securities are taxed as profit on debt under the Income Tax Ordinance. Your bank deducts withholding tax at source, so the amount hitting your account is already net of tax. Two things to keep in mind:

• ATL status can change withholding. The applicable rate depends on current law and the taxpayer's facts; withholding is not necessarily the final liability.
• Rates change. Use the FBR Tax Year 2027 withholding card and the current Income Tax Ordinance instead of a percentage copied from an older article.

Capital gains on securities sold before maturity are taxable too, under different treatment. Keep your bank's transaction confirmations for return-filing time.

08The risks: what can actually go wrong

Reinvestment risk

A short security matures sooner and its proceeds must be reinvested at whatever yield is then available. That yield may be higher or lower. A longer fixed-rate instrument reduces that reinvestment frequency but adds greater price sensitivity and a longer commitment.

Price risk on PIBs sold before maturity

A fixed-rate PIB held to maturity follows its contractual cash flows, subject to issuer terms. Sold early, it receives the market price. When market yields rise, an existing fixed-rate bond's price generally falls, with greater sensitivity at longer duration. Floating-rate instruments have different reset and spread risks rather than eliminating risk.

Inflation risk

A nominal rupee cash flow does not guarantee purchasing power. Compare cash flows with CPI from the Pakistan Bureau of Statistics over matched periods and model multiple future inflation paths. This calculation does not by itself establish an allocation to another asset.

09Frequently asked questions

What is the minimum amount needed to buy T-bills in Pakistan?

Use the current InvestPak page for the exact instrument denomination and confirm any bank transaction rule or fee. Different government securities and participating institutions can have different practical requirements, so this page does not state one universal minimum.

Are T-bills safer than National Savings certificates?

Both are direct obligations of the Government of Pakistan, so the credit risk is essentially the same. The differences are practical: T-bills are tradable market instruments held in an IPS account, while National Savings certificates are non-tradable CDNS products with their own early-encashment rules. Neither protects you from inflation eroding real returns.

Can I sell my T-bills or PIBs before maturity?

Yes - through your bank in the secondary market. T-bills are short-dated, so their prices move little. PIBs are different: if rates have risen since you bought, a fixed-rate PIB will be worth less than you paid; if rates have fallen, you may sell at a gain. Held to maturity, you receive full face value regardless.

Do I pay tax on T-bill and PIB profit?

Yes. Profit is treated as profit on debt and withholding tax is deducted at source by your bank - at a significantly higher rate if you are not on the FBR's Active Taxpayer List. Capital gains on early sales are also taxable. Rates change with federal budgets, so verify the current schedule at fbr.gov.pk rather than relying on any fixed figure.

How do direct T-bills differ from a money market fund?

An IPS account holds a specific government security with stated cash flows. A money market fund holds a changing portfolio, issues units at NAV, charges expenses and applies its own redemption terms. Compare current documents, fees, liquidity and risks; no account-size rule makes one universally better.

What is an IPS account and how do I open one?

An Investor Portfolio Securities (IPS) account is the record-keeping account a bank maintains with the State Bank of Pakistan to hold your government securities such as T-bills and PIBs. You open one through a commercial bank that offers the service, usually by submitting standard KYC documents like your CNIC and an existing bank account. Eligibility, fees, and paperwork vary by bank, so confirm the exact requirements with your branch.

What tenors are available for T-bills in Pakistan?

Treasury bills are short-term instruments, typically issued in three-month, six-month, and twelve-month tenors. They are sold at a discount to face value and pay no separate coupon - your return is the difference between the purchase price and the face value received at maturity. For longer fixed-income exposure, Pakistan Investment Bonds (PIBs) run for several years instead.

Can overseas Pakistanis buy T-bills?

Non-resident Pakistanis can generally invest in government securities, often through Roshan Digital Accounts or non-resident accounts offered by Pakistani banks, which channel funds into the relevant instruments. The specific products, currency options, and tax treatment differ from those for resident investors. Check the current terms with a participating bank and verify tax details on fbr.gov.pk.

How are T-bill auctions conducted in Pakistan?

The State Bank of Pakistan holds periodic auctions on behalf of the government, where banks and primary dealers submit competitive bids. The cut-off yield is set by the accepted bids, and retail investors usually participate indirectly by placing orders through their bank rather than bidding at the auction themselves. Auction calendars and results are published by the State Bank, so check sbp.org.pk for the current schedule.

What is the difference between T-bills and a bank fixed deposit?

A T-bill is a direct obligation of the Government of Pakistan, while a fixed deposit is a liability of the bank that holds it. T-bills are tradable in the secondary market and held in an IPS account, whereas a fixed deposit is held with the bank and typically has its own early-withdrawal penalties. Both have their profit taxed as profit on debt, so verify the applicable withholding rates on fbr.gov.pk.