T-Bills & Sukuk
Two ways to put your money behind the Government of Pakistan — one conventional, one Shariah-compliant. Both are now open to individual investors through the Pakistan Stock Exchange.
Two Ways to Lend to the Government
Treasury Bills and Ijarah Sukuk both put the Government of Pakistan on the other side of your money — but they are built on different principles.
Governments borrow, and Pakistan borrows by issuing securities. Treasury Bills cover the short term, Pakistan Investment Bonds cover the long term, and GoP Ijarah Sukuk are the Shariah-compliant alternative. All three carry the backing of the federal government.
For years these instruments were effectively closed to individuals. Banks and primary dealers bought them, and everyone else reached the market indirectly through a fund. That has changed. GoP Ijarah Sukuk auctions moved to the Pakistan Stock Exchange in December 2023, with T-Bill and PIB auctions following — so you can now bid directly and trade what you hold.
Two of these instruments matter most to individual investors. This page covers both: what they are, how they differ, and how to buy them.
Treasury Bills (T-Bills)
Short-term government paper, sold at a discount and redeemed at full face value.
A T-Bill is a short-dated security issued by the Government of Pakistan through the State Bank. You buy it below its face value and receive the full face value when it matures — the difference is your return. There is no periodic payment along the way.
The State Bank auctions T-Bills fortnightly in three tenors. The minimum denomination is PKR 5,000, and once you hold a bill you can sell it before maturity on the PSX government securities market rather than waiting it out.
Cut-off yields from the State Bank of Pakistan auction of 2 September 2026, shown as an illustration only. Yields are set afresh at every auction and move with market conditions — check the current cut-offs before you bid.
Please note: Treasury Bills are conventional, interest-based instruments and are not Shariah-compliant. Investors seeking a permissible placement with a comparable government-backed profile should consider GoP Ijarah Sukuk below.
GoP Ijarah Sukuk (GIS)
Shariah-compliant certificates that pay rental income from real assets — not interest.
Sukuk are certificates representing ownership in a tangible asset, a usufruct, or a service. Instead of interest, a Sukuk holder receives a share of the rental income that asset earns. The word comes from the Arabic sakk, meaning a legal instrument or deed.
The Government of Pakistan issues mainly Ijarah Sukuk. The structure is what makes them permissible: the government identifies a real asset — a motorway, an airport, an energy project — and that asset, rather than a promise to repay with interest, stands behind your certificate.
How the Structure Works
Five steps from a government asset to rental income in your account.
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An asset is identified
The government selects a tangible, revenue-generating asset from its own holdings.
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The asset moves to a Special Purpose Vehicle
An SPV is set up to hold the asset on behalf of the investors who will subscribe.
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Certificates are issued
The SPV issues Sukuk to investors, each certificate representing a proportionate ownership share in the asset.
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The asset is leased back
The government leases the asset from the SPV and pays rent for its use.
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Rentals are distributed
Investors receive their share of the rental income at the agreed intervals. At maturity the asset is bought back and your principal is returned.
Tenors and Access
GoP Ijarah Sukuk are issued in four tenors, with the same PKR 5,000 minimum as a T-Bill.
Rental rates from recent PSX Sukuk auctions, shown as an illustration only. Rates are struck at each auction and move with market conditions. Sukuk auctions are open to individuals, non-resident Pakistanis and foreign investors; bids may be competitive (you name your rate) or non-competitive (you accept the rate the market sets).
Other Sukuk Structures
Ijarah is the structure the government uses most, but it is one of several recognised forms.
Ijarah — Lease
Investors own a tangible asset and earn the rent it generates. The clearest structure to understand, and the one the Government of Pakistan issues.
Musharakah — Partnership
All parties contribute capital and share profit and loss in agreed proportions. Usually tradable on the secondary market.
Murabaha — Cost-Plus Sale
The issuer buys a commodity and sells it on at a disclosed mark-up. Because it represents a receivable, it generally cannot be traded on the secondary market and changes hands at face value.
Istisna — Construction
Funds an asset that does not yet exist, with capital released in stages as work progresses. Common in infrastructure and project financing.
T-Bills & Sukuk at a Glance
The same market, the same minimum — but a different principle behind each one.
| Feature | Treasury Bills | GoP Ijarah Sukuk |
|---|---|---|
| What you hold | A short-term claim on the Government of Pakistan. | Ownership in a tangible asset, held through a Special Purpose Vehicle. |
| Where the return comes from | The gap between the discounted purchase price and the face value paid at maturity. | Rental income earned by the underlying asset. |
| Shariah-compliant | No — conventional and interest-based. | Yes — asset-backed and structured to avoid riba. |
| Typical tenors | 3, 6 and 12 months. | 1, 3, 5 and 10 years. |
| Minimum investment | PKR 5,000. | PKR 5,000. |
| When you are paid | At maturity, as a single payment. | Periodic rentals, at the frequency set by the issue. |
| Where it trades | The PSX government debt securities market, through a Bills and Bonds enabled broker. | The PSX government debt securities market, through a Bills and Bonds enabled broker. |
How to Invest
Both instruments are bought and sold the same way — through a broker on the Pakistan Stock Exchange.
Open a brokerage account
Choose a broker enabled for Bills and Bonds trading on PSX. Rafi Securities is one, and can open the account for you.
Sign the Facilitation Agreement
A one-time agreement with your broker that establishes your ability to deal in government securities.
Open your CDC IPS account
Your Investor Portfolio Securities account at the Central Depository Company is where the securities are actually held, in your name.
Fund your account
Make sure enough funds are in place a day before the trade or auction date so your bid can be accepted.
Bid, or buy in the market
Take part in a primary auction — naming your own rate or accepting the market rate — or buy in the secondary market through your broker.
Collect your returns
Rentals and maturity proceeds are settled directly between you and the CDC. Your broker executes the trade but never holds your securities or your money.
Watch: How to Invest in GoP Ijarah Sukuk
A walkthrough from the Pakistan Stock Exchange on buying government Sukuk through the exchange.
Video courtesy of Pakistan Stock Exchange Limited, published 12 November 2025.
Common Questions
The things investors ask before their first government securities trade.
What is the difference between a T-Bill and Sukuk?
Both are government securities, but they work on different principles. A T-Bill is a short-term obligation you buy at a discount and redeem at full face value, so your return is the difference between the two. A Sukuk is a certificate representing ownership in a real asset, and your return is the rental that asset earns. In practice the difference that matters most is that T-Bills are interest-based while Ijarah Sukuk are structured to be Shariah-compliant.
Are Treasury Bills Shariah-compliant?
No. Treasury Bills are conventional, interest-based instruments. If you are looking for a Shariah-compliant placement with a similar government-backed risk profile, GoP Ijarah Sukuk are the equivalent route — they are asset-backed and pay rental income rather than interest.
What is the minimum investment?
PKR 5,000 for both Treasury Bills and GoP Ijarah Sukuk. That is the minimum denomination at auction — the same floor applies whether you are buying in the primary auction or on the secondary market.
How and when do I receive my return?
A T-Bill pays nothing during its life. You receive the full face value at maturity, and your return is the difference between what you paid and what you were paid back. Ijarah Sukuk pay rentals at intervals set by the individual issue — commonly every six months — with the principal returned when the Sukuk matures.
Can I sell before maturity?
Yes. Both T-Bills and Ijarah Sukuk trade in the secondary market on the PSX government debt securities platform through a Bills and Bonds enabled broker, so you are not locked in until maturity. The price you receive depends on market conditions at the time — selling early can return more or less than holding to maturity would have.
Can non-resident Pakistanis invest?
Yes. GoP Ijarah Sukuk are open to non-resident Pakistanis, including through Roshan Digital Accounts, as well as to foreign investors. The account setup runs through a custodian bank authorised by the State Bank of Pakistan or through the CDC. Talk to us and we will walk you through which route fits your situation.
Who holds my securities and my money?
Settlement runs directly between you and the Central Depository Company through your Investor Portfolio Securities account, which is held in your own name. Your broker executes the trade on your instruction but does not hold your securities or your funds at any point. Payments for settled trades move between you and the CDC.
Start Investing in Government Securities
Whether you want the short-term certainty of a Treasury Bill or a Shariah-compliant Sukuk, our team can open the account, set up your CDC IPS account and place the bid with you. Reach us through any channel below.
Rafi Securities (Private) Limited — more than 40 years of market legacy · PSX TREC holder · PMEX member · Regulated by the SECP. Yields and rental rates shown on this page are illustrative, are drawn from published auction results, and change at every auction. They are not a forecast of future returns. The value of an investment can fall as well as rise, and past performance does not indicate future results.