PAKISTAN

INVESTMENT BOND
Group Members:
Adil Farhan
Syeda Jafri
Ibtehaj
Rida Sohail

Pakistan Investment Bond

Overview of PIBs

Pakistan Investment Bonds are issued by SBP on

behalf of the federal Government.

PIBs are the only long term debt securities.

Benchmark for long tenure debt.

Risk free.

Inter bank/NBFIs transfer of PIBs is permissible.

Pakistan Investment Bond

TENURE:

Issued in five tenors of:

3 Years
5 Years
10 Years
15 Years
20-Years
30-Years maturity

Pakistan Investment Bond

Coupon Rate

SBP, SECP & Ministry of Finance announce

the coupon rates and the target amounts
after consulting each other.
Profit is Paid Semiannually.
With holding tax is levied @ of 10% on
interest of PIBs.

Pakistan Investment Bond

Essential Mechanism

SBP is acting as an agent on behalf of the

government for raising short term and long
term funds from the market.
Primary Dealer maintains a Subsidiary
General Ledger Account (SGLA) with SBP
for the settlement purpose.
The PIBs are sold by SBP to ten approved
Primary Dealers through multiple price
sealed bids auction.

Pakistan Investment Bond

These bonds are sold to Primary Dealers
through auctions. At present the following
institutions are declared as Primary Dealers:-

Pakistan Investment Bond

Commission is paid to Primary Dealers on sale
proceeds of Pakistan Investment Bonds (PIBs)
@ 0.5% on amount of bid accepted or 3.5% of
the target amount whichever is less.
Commission is paid to Primary Dealers by
debiting the Government Non-Food Account
and credits the amount to the respective
banks account.

Pakistan Investment Bond

Following are the current rate of profit on
bonds of various maturities: Three years 6.0%
Five years 7.0%
Ten years 8.0%
Fifteen years 9.0%
Twenty Years 10.0%

Pakistan Investment Bond

Calculation

Micros oft Excel

Works heet

Pakistan Investment Bond

Questions??