Pakistan Investment Bonds (PIBs): Latest Yields, Tax and How to Buy
A Complete Guide for Smart Investors in Pakistan
Last updated: 27 October 2026 by Ahmed. Yields below are from the State Bank of Pakistan’s fixed-rate PIB auction of 7 October 2026.
Pakistan Investment Bonds (PIBs) are one of the most trusted long-term investment options offered by the Government of Pakistan. Designed for stability, predictable returns, and wealth preservation, PIBs play a vital role in financial planning and can be a strong stepping stone toward financial freedom — especially for investors seeking safe, Shariah-aligned, and long-term returns.
What Are Pakistan Investment Bonds?
Pakistan Investment Bonds are long-term, fixed-rate government securities issued by the Government of Pakistan through the State Bank of Pakistan (SBP).
Their primary purpose is to:
- Raise funds for national development
- Offer investors a secure, stable source of income
- Provide long-term saving instruments for risk-averse individuals
Because they are backed by the government, PIBs are considered one of the safest investment products in Pakistan.
Latest PIB Yields (October 2026)
The State Bank of Pakistan auctions fixed-rate PIBs roughly once or twice a month. At the 7 October 2026 auction the government raised about Rs 376.7 billion, and yields rose by 26 to 41 basis points compared with the previous auction on 18 September:
| PIB tenor | Coupon (fixed) | Cut-off yield, 7 Oct 2026 | Cut-off yield, 18 Sep 2026 |
|---|---|---|---|
| 3-year | 12.00% | 12.7460% | 12.4900% |
| 5-year | 12.25% | 12.8998% | 12.4900% |
| 10-year | 12.50% | 12.8500% | 12.5000% |
| 15-year | – | All bids rejected | – |
The coupon is the fixed profit the bond pays every six months. The cut-off yield is the return investors actually locked in at the auction price. When yields are above the coupon, the bond sells below its face value, so your effective return is higher than the coupon.
How Pakistan Investment Bonds Work
PIBs operate on a simple, transparent model:
1. Fixed Profit (Coupon)
Each PIB carries a fixed annual profit rate, which is paid semi-annually.
Examples include:
- 3-year
- 5-year
- 10-year
- 15-year
- 20-year bonds
These profit rates remain unchanged throughout the life of the bond.
Example: the 3-year PIB sold on 7 October 2026 carries a 12% coupon. On Rs 1,000,000 of face value, that is Rs 120,000 a year, paid as Rs 60,000 every six months (before tax).
2. Long-Term Maturity
You invest once and receive consistent profits until the maturity date.
When the bond matures, you receive your full principal amount back.
3. Tradable in the Secondary Market
PIBs can also be bought or sold before maturity through the Pakistan Stock Exchange (PSX) bond market or through a bank acting as a Primary Dealer.
This gives investors flexibility and liquidity.
How to Purchase and Sell Pakistan Investment Bonds
Where to Buy PIBs
You can purchase PIBs through:
1. Commercial Banks (Primary Dealers)
Certain banks are designated as Primary Dealers by SBP. They facilitate:
- Buying PIBs in auctions
- Purchasing existing PIBs from the secondary market
2. Pakistan Stock Exchange (PSX)
Investors can buy/sell PIBs through their brokerage account, similar to trading stocks.
3. Licensed Financial Institutions
Investment companies and specialized financial service providers often offer PIB investment services.
Purchase Process
- Open an account with a bank or broker
- Fill out PIB subscription documents
- Deposit your investment amount
- Receive confirmation of your PIB holding in your CDC or bank account
You can invest as an:
- Individual
- Business
- Institution
- Non-resident Pakistani (NRP)
How to Sell PIBs Before Maturity
If you want early liquidity, you can:
- Sell your PIBs through your broker in the secondary market, or
- Redeem them via your bank, depending on market rates
The sale price depends on:
- Market interest rates
- Remaining maturity
- Demand in the bond market
How to Purchase Pakistan Investment Bonds Through SBP’s Online Portal (InvestPak)
With the launch of the InvestPak portal by the State Bank of Pakistan (SBP), formally launched on 6 July 2026 as a web portal and mobile app, individual investors now have a convenient and fully digital way to purchase Pakistan Investment Bonds (PIBs) without relying solely on banks or brokers. This initiative promotes transparency, accessibility, and financial inclusion, empowering Pakistanis to invest directly in government securities.
Below is a step-by-step guide on how to register, get onboarded, and participate in the online bidding process for PIBs.
1. General Guidelines for Investors
Before beginning the process, investors should understand a few important points about how the InvestPak platform works:
✔ Registration Is Mandatory
Only registered users can access the transactional portal and bid in government security auctions.
✔ Two-Factor Authentication (2FA)
Security on the portal is strict. Every login, registration, and transaction requires verification through:
- One-Time Password (OTP) via mobile
- OTP via email
✔ Limited Access
Only users who have completed onboarding and verification can place bids or make requests.
2. Registration & Onboarding Process on InvestPak
Here is a detailed, simplified walkthrough of the onboarding steps:
Step 1: Enter Basic Personal Information
To begin registration, the investor fills in:
- Full name
- Mother’s name
- CNIC details
- Active mobile number
- Email address
- Bank account information (IBAN)
- Information about IPS (Investor Portfolio Securities) account availability
This step establishes the user’s identity on the system.
Step 2: Bank Details Are Automatically Verified
When the investor enters their IBAN:
- The system automatically fetches the bank name and whether it is Islamic or Conventional, using the Raast API.
- If the bank account is valid, the system proceeds to the next step.
This automatic validation ensures accuracy and prevents errors.
Step 3: Mobile & Email Verification
After confirming the IBAN details, the system sends OTPs to:
- The investor’s mobile number
- The investor’s email address
Both codes must be entered correctly to continue registration.
Step 4: Confirm IPS Account Status
The investor must declare whether they already have an IPS account (a mandatory account used for holding government securities).
Two possibilities:
✔ A. IPS Account Already Exists
The user enters their IPS account details.
✔ B. No IPS Account Yet
The system automatically sends a request to the investor’s bank to open an IPS account on their behalf.
Step 5: Bank Verification & Response
After registration, the investor’s bank reviews the submitted details. The bank may respond with one of the following:
1. Approval (Onboarding Accepted)
The bank verifies all details and approves the request.
2. Rejection
The bank rejects the onboarding with a mandatory explanation.
3. Further Information Required
The bank requests additional documents or clarification, specifying what is needed.
Step 6: Login Credentials Issued
If the onboarding request is approved, the system sends:
- Login ID
- OTP
to the investor’s registered email and mobile number.
This allows the investor to access the InvestPak transaction portal.
Step 7: First Login & Password Change
Upon signing in for the first time, the user must immediately:
- Enter the temporary login details
- Create a new secure password
Only after changing the password does the investor gain full access to the dashboard.
Step 8: Adding Additional Bank Accounts (Optional)
A registered investor can link more bank accounts, even from different banks, by:
- Going to Profile Management
- Adding account details
- Completing the same OTP and verification process as initial registration
This feature allows investors to diversify funding and settlement options.
InvestPak Portal: A Modern, Accessible Way to Buy PIBs
The InvestPak portal is a milestone in Pakistan’s financial ecosystem. Whether you’re a first-time investor or an experienced one, this system makes it easier to:
✔ Participate in PIB auctions
✔ Eliminate middlemen
✔ Use multiple bank accounts
✔ Access secure, transparent investment options
✔ Build a disciplined, long-term financial plan
By enabling online access to government securities, the State Bank of Pakistan has taken an important step toward promoting financial freedom and investment literacy across the country.
Tax on PIB Profit
For individuals, withholding tax on profit from government securities is 15% for filers and 30% for non-filers (those not on FBR’s Active Taxpayers List), deducted at source when each coupon is paid. If you sell a PIB before maturity, tax may also be withheld on the gain under section 151A. Check the latest FBR withholding tax rate card or ask your bank before investing.
Benefits of PIBs for Financial Freedom and Financial Planning
1. Guaranteed, Predictable Income
PIBs pay fixed profit every six months, helping you:
- Cover monthly expenses
- Build a stable passive income stream
- Protect your wealth from market volatility
2. Capital Safety
Because PIBs are backed by the Government of Pakistan, your principal remains secure even during economic uncertainty.
3. Long-Term Wealth Building
PIBs support long-term goals such as:
- Retirement planning
- Children’s education
- Building an emergency fund
- Creating generational wealth
4. Portfolio Diversification
Adding PIBs to your portfolio reduces overall risk, balancing:
- High-return investments (stocks, gold, real estate)
- Low-risk instruments (government bonds)
5. Battling Inflation
Long-term fixed returns help preserve purchasing power when markets fluctuate.
6. Liquidity and Flexibility
You can exit before maturity through the PSX bond market.
7. Ideal for Conservative Investors
PIBs suit:
- Retirees
- Salaried individuals
- Beginners
- Pakistanis seeking low-risk financial growth
How PIBs Support the Journey to Financial Freedom
Build Consistent Passive Income
Regular profit payouts help create financial stability and a reliable income stream — key pillars of financial freedom.
Low-Risk Wealth Protection
PIBs shield savings from:
- Stock market volatility
- Currency depreciation
- Economic uncertainty
Long-Term Goal Setting
Their long maturities align perfectly with:
- Retirement plans
- Long-term investments
- Family security planning
Foundation for a Balanced Portfolio
Smart investors use PIBs as the stable backbone of their investment plan, while other assets provide growth.
Conclusion: Why PIBs Should Be Part of Your Financial Plan
Pakistan Investment Bonds are more than just government securities — they are a strategic tool for financial growth, wealth security, and long-term independence. Whether you are a beginner or an experienced investor, PIBs offer:
✔ Stability
✔ Predictable returns
✔ Capital protection
✔ Long-term financial confidence
In a changing economic environment, PIBs help Pakistanis build financial freedom with certainty and discipline.
Frequently Asked Questions
What is the current PIB rate in Pakistan?
At the 7 October 2026 auction, cut-off yields were 12.7460% for the 3-year PIB, 12.8998% for the 5-year and 12.85% for the 10-year. Yields change at every auction, so check the State Bank of Pakistan’s latest results before you invest.
Can an individual buy PIBs directly?
Yes. Individuals with a rupee bank account can register on SBP’s InvestPak portal or app, open an Investor Portfolio Securities (IPS) account and bid in PIB auctions or buy in the secondary market. You can also invest through your bank.
How often is profit paid on PIBs?
Fixed-rate PIBs pay their coupon every six months until maturity, when your full face value is returned.
Are PIBs better than National Savings?
PIBs currently offer similar or slightly higher yields than most National Savings schemes and can be sold before maturity in the secondary market. National Savings schemes are simpler to buy at a branch, and some (like the Pensioners’ Benefit Account) are tax-exempt for eligible investors. Compare the after-tax return for your situation.
Can I lose money in PIBs?
If you hold a PIB to maturity, you get your full face value back because it is backed by the Government of Pakistan. If you sell early when market yields have risen, the price may be lower than what you paid.