FINANCIAL MANAGEMENT

Marketable Securities

M.Mateen Asif
Marketable Securities in Pakistan
Marketable securities or Bonds are issued by the governments or corporate sectors to provide
opportunities to the general public of investment. Aiding the Governments and Corporations to collect
money to be used for their intended purposes.

Risk Free: Issued by State Bank of Pakistan

Market Treasury Bills (MTBs)

 Issuer: Government of Pakistan

 Issued in accordance with Public Debt Act 1944
 Denomination: Issued in multiples of PKR 5,000
 Tenors: 3, 6 and 12 months
 Issued at discount
 MTBs are issued in a scrip less (without physical) form
 Auction schedule: Regular auctions of MTBs are held on fortnightly basis. A quarterly
schedule is published by SBP at the beginning of each quarter
 Income Tax: Income Tax will be deducted as per existing law
 Zakat: No compulsory deduction of Zakat at source
 Custodian: Ultimate custodian is the SBP, but banks maintain these securities in the
Investor Portfolio of Securities (IPS) Accounts on behalf of their customers
 MTBs are only redeemable at maturity. MTBs are only redeemable at maturity. However, any
investor can sell MTBs in secondary market through its bank

Pakistan Investment Bonds (POB)

 Paid Semi annually
 Tenure of the bond is three, five & ten years
 Investment in multiples of 100,000 PKR
 Shall not be redeemed before maturity
 They are tradeable in secondary Market
 Interest Rates ranges from 11.25 to 13.75 percent

Government of Pakistan Ijara Sukuk

 Tenure of three years

 Semiannually payment
 Investment in multiples of 100,000 PKR
 Shall not be redeemed before maturity
 They are transferable
Government of Pakistan International Bonds
Pakistan Banao Certificates

 Tenure of three to five years

 Profit Rates of 6.25 to 6.75 annually
 Payment of profit semiannually
 Maturity in UDS & PKR, Maturity in PKR has an added benefit of 1 percent
 Holders of Pakistan Origin Card, National Identity card can invest
 Minimum investment of USD 5000, with an integral multiple of 1000 USD with no
maximum limit.
 Encashment in USD within one year bears a penalty of 1 percent on the final premium,
Encashment in rupees has no penalty.
Panda Bonds
Panda bonds are the bonds that are issued in the market of China,. Pakistan will issue $1 billion
worth of panda bonds in the first quarter of 2020.