The interest rates the Pakistani government pays to borrow money via Treasury Bills (short-term) and Pakistan Investment Bonds (long-term).
3-Year PIB Yield
13.25%
3Y − 3M Spread
0.94 pp
3-Month T-Bill Yield — 24-Month Trend
Source: SBP EasyData, weighted average yield from periodic T-Bill auctions.
Treasury Bills (T-Bills) are short-term government debt instruments maturing in 3, 6, or 12 months, sold at a discount and redeemed at face value. PIBs (Pakistan Investment Bonds) are longer-term, ranging from 3 to 30 years.
The 3-month T-Bill yield is Pakistan's key short-term benchmark rate, closely tracking the SBP policy rate. The spread between long and short-term yields (the yield curve) reflects what markets expect for future interest rates.
When PIB yields are below T-Bill yields, the curve is 'inverted' — markets expect rate cuts ahead. When PIB yields are higher, it's a 'normal' curve reflecting a stable outlook.
Bond yields directly affect the government's debt servicing costs — Pakistan's banking sector also holds large amounts of these securities, so yield movements significantly impact bank profitability.
The yield curve shape (the 3Y-3M spread) is a useful, market-based signal of where investors expect interest rates and inflation to head over the next few years.
What is Pakistan's current 3-month T-Bill yield?
Pakistan's 3-month T-Bill yield is currently 12.31%, based on the most recent SBP auction data.
What is the difference between a T-Bill and a PIB?
T-Bills are short-term (up to 12 months) government debt sold at a discount to face value. PIBs are medium-to-long-term bonds (3-30 years) that pay periodic coupon interest.
What does the yield curve tell us about the economy?
An inverted yield curve (short-term yields above long-term yields) typically signals that markets expect interest rate cuts ahead, often associated with an economic slowdown. A normal upward-sloping curve suggests a stable outlook.
Who buys Pakistani government bonds?
T-Bills and PIBs are primarily bought by commercial banks, though individuals can invest through Investor Portfolio Securities (IPS) accounts, and foreign investors can participate via Special Convertible Rupee Accounts.
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