Market Treasury Bills

Is a negotiable debt instrument issued by State Bank of Pakistan on behalf of the Government of Pakistan and backed by its full faith and credit. Treasury bills are usually sold through auctions on a discount basis with a yield equal to the difference between the purchase price and the maturity value.

Salient Features are

  • Issuer: Government of Pakistan
  • Coupon: Zero Coupon (Issued at discount)
  • Tenor: 3, 6 & 12 Month
  • Denominations : Multiple of 5,000 Pak rupees
  • Withholding Tax : Deducted at source (Currently at 10%)
  • Sale of Bills : Through designated Primary Dealers
  • Redemption: Bills shall not be redeemable before maturity
  • Tradable: Bills are script less & traded freely in the Secondary Market and are transferable.
  • Custodianship As the T-Bills are script less instruments, client’s holding are held in the Investor Portfolio Services (IPS) Account managed through Subsidiary General Ledger Accounts with banks.