Treasury Bills (T-Bills) in Pakistan are key short-term government securities issued to raise capital and manage liquidity. As of 2025, they play a crucial role in shaping the country’s monetary policy and investment outlook.
This guide covers everything you need to know about Treasury Bill rates in Pakistan, including definitions, latest rates, market trends, and economic context.
What Are Treasury Bills (T-Bills)?
- Definition: Short-term debt instruments issued by the Government of Pakistan via the State Bank of Pakistan (SBP).
- Tenors Available:
- 3 months (84 days)
- 6 months (182 days)
- 12 months (364 days)
- Features:
- Non-coupon (zero-interest)
- Discounted purchase, full-face value at maturity
- Minimum denomination: PKR 5,000
- Tradable in secondary markets
Who Can Invest in T-Bills?
- Commercial banks
- Development Finance Institutions (DFIs)
- Mutual Funds and Corporates
- Individuals (via non-competitive bidding)
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How T-Bills Work
| Term | Purchase Method | Return Type | Liquidity |
|---|---|---|---|
| 3, 6, 12 mo. | SBP Auction (fortnightly) | Discounted, no interest | Highly liquid |
Latest Treasury Bill Rates in Pakistan (As of May 15, 2025)
| Tenor | Cut-off Yield | Weighted Avg Yield |
|---|---|---|
| 3‑Month | 11.24% | 11.21% |
| 6‑Month | 11.28% | 11.25% |
| 12‑Month | 11.35% | 11.32% |
Source: State Bank of Pakistan (SBP)
Recent Market Trends (2025 Highlights)
- Feb 2025: Yields rose slightly – 3M at 11.82%, 6M at 11.67%, 12M at 11.64%
- Jan 2025: Major decline after SBP hinted at monetary easing
- May 2025: Stabilized yields around 11.2–11.3% as inflation slowed
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SBP Policy Rate & Impact on T-Bills
- SBP Key Interest Rate: Held steady at 11.0% (June 2025)
- Why It Matters: T-Bill yields move closely with the policy rate. Any changes signal shifts in short-term borrowing costs and inflation outlook.
Why T-Bill Rates Are Important
- Benchmarks for lending rates (e.g., KIBOR)
- Monetary policy indicators
- Safe investment for institutions & individuals
- Government fiscal tool for raising funds
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Key Factors Influencing T-Bill Yields
- SBP monetary policy decisions
- Inflation trends (currently 4–5% in 2025)
- Government borrowing needs
- Global commodity prices (e.g., oil)
- Exchange rate stability and IMF programs
T-Bill Investment Strategy for 2025
- Short-term stability: Ideal for conservative portfolios
- Post-inflation returns: Real yields positive in 2025
- Watch: Upcoming SBP meetings, CPI reports, and auction results
Summary: What You Need to Know
- Yields (May 2025): ~11.2–11.3%
- Safe, short-term investment backed by the Government of Pakistan
- Policy Rate Link: Closely tied to SBP’s 11.0% rate
- Liquidity: Easy to buy/sell in the secondary market
Conclusion
Treasury Bills remain a critical tool for managing Pakistan’s economic health and provide a secure investment avenue for short-term investors. With yields offering stability in 2025 and inflation under control, T-Bills are once again attracting attention from individuals and institutions alike. Stay tuned with Bloom Pakistan.
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