How to Buy a Pakistan Investment Bond (PIB): IPS Account, Rs 100,000 Lots and Non-Competitive Bids

Short answer: To buy a Pakistan Investment Bond (PIB) as an individual, open an Investor Portfolio Securities (IPS) account at a bank that offers one, then ask the bank to place a bid in an SBP auction or to buy in the secondary market. A PIB is issued in lots of Rs 100,000, and a small investor bids "non-competitively" at the auction average.

A PIB is a loan you give the Government of Pakistan. It pays a fixed profit, called a coupon, twice a year, and returns your face value on a set date. It is the longer cousin of the treasury bill, which runs for a year or less.

We read the State Bank of Pakistan (SBP) investor guide for PIBs and the SBP financial markets page on 13 October 2026. The guide is undated and still lists the primary dealers of FY2019-20, so check every figure with your bank before you commit money.

You need an IPS account to hold a PIB

SBP says an IPS account is necessary for investing in PIBs. Primary dealers and scheduled banks hold the bonds in IPS accounts for their customers. You are the legal owner of the bond, and the bank keeps it in scripless form, with no paper certificate.

Anyone who holds a rupee account with a primary dealer or a scheduled bank that offers the facility can open an IPS account. SBP's guide tells you to contact the bank's treasury department or your branch. Bank charges on IPS accounts are listed in the bank's own schedule of charges.

SBP's page also describes InvestPak, a digital platform for individuals and companies to invest in treasury bills and PIBs. We did not test it, so ask your bank whether it is open to you.

Small investors bid at the average yield

You do not name a price. SBP's guide describes a "non-competitive" bid, which is accepted at the weighted average yield decided in the auction. This is the usual route for an individual.

The limit for one investor is 0.25 per cent of the pre-announced auction target, or Rs 25 million, whichever is higher, up to a maximum of Rs 500 million. One investor should submit one bid for each tenor, because the guide says more than one bid for a single tenor can lead to rejection.

The guide lists tenors of 3, 5, 10 and 20 years. SBP's current financial markets page describes PIBs in tenors from 2 to 30 years, in fixed, floating and zero coupon types. Ask your bank which are on offer in the next auction.

Auctions run on a published calendar

SBP's page says the government sets the auction calendar, and SBP circulates it on its website. Auctions are on Wednesdays, and payment settles the next day. The calendar is issued monthly for the next three months.

Our report on the PIB auction on 7 October 2026 shows what a recent auction looked like. The annual borrowing plan explains how much the government plans to raise this year.

Because a bond price moves with interest rates, selling before maturity can give you more or less than you paid. Only a hold to maturity returns the face value.

Check the tax before you buy

SBP's guide says income tax is deducted as per existing law. We did not find a single rate on SBP's page. FBR's circular on the Finance Act 2026 says withholding tax on the capital gain from disposing of debt securities rose from 15 to 20 per cent, under section 151A.

The same circular says a 10 per cent rate applies to profit on a government bond bought exclusively through a non-resident rupee or foreign currency account. Our guide to tax on bank profit shows how other savings are taxed, for comparison. Ask the bank in writing which rate applies to you.

1. Choose the amount in lots of Rs 100,000.
2. Ask the bank for its IPS account form, charges and cut-off time before an auction.
3. Open the IPS account and link your rupee account.
4. Check SBP's auction calendar for the next PIB auction and tenor.
5. Instruct the bank to place a non-competitive bid before the cut-off.
6. Keep the quarterly IPS statement the bank sends you.

If you only want a short lock-in, the guide to investing in treasury bills covers the one year option.

Common questions

What is the smallest PIB I can buy?

SBP's investor guide says PIBs are issued in multiples of Rs 100,000. Ask your bank, because it may set its own minimum.

Can an individual buy a PIB without a broker?

Yes, through a bank that offers an IPS account. The guide names primary dealers and scheduled banks as the route, not brokers.

How often does a PIB pay profit?

Every six months, according to the guide, at a fixed rate on the face value. It is credited to your account through the bank.

Is zakat deducted from a PIB?

No compulsory deduction at source is made, says SBP's guide. Whether zakat is due on your holding is your own decision.

Can I sell a PIB before maturity?

Yes, in the secondary market through your bank. The price depends on market yields, so you may not get your face value back.

How we verified this

What we checked, where we read it, and what we could not confirm.

Last checked on 13 October 2026, Pakistan time. We read SBP's Pakistan Investment Bond investor guide and its financial markets page, and FBR's Circular No. 02 of 2026-27. The investor guide is undated and lists FY2019-20 dealers, so its figures may be out of date. We did not read the government securities scheme of any bank, and we could not test InvestPak.