P

Glossary · PSX term

Pakistan Investment Bonds (PIBs).

PIBs are longer-term government bonds issued by Pakistan, typically 3 to 30 years.

Definition

PIBs pay periodic coupons and are used by the government to borrow long term, with fixed or floating rate variants. Their prices move with interest-rate expectations, so they carry more rate risk than short T-bills.

Worked example

An investor may hold a 10-year fixed-rate PIB to lock in a coupon for the long term.

Related on PSX Clarity

Treasury bills (T-bills)

Yield to maturity

Interest-rate risk

More glossary terms

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