MCB Bank limited is offering Investor Portfolio Securities Accounts (IPS) to customers. IPS accounts are custodial accounts maintained for buying and holding government securities (T-Bills, PIBs, Sukuks) on behalf of their customers. The types of government securities that customers can invest through IPS account are:

Market Treasury Bills (T-Bills)

Market Treasury bills are zero coupon instruments issued by the Government of Pakistan and sold through the SBP via fortnightly auctions. Salient features are:

• Currently issued in tenors of 1, 3, 6 and 12 months etc;
• Denominated in multiples of PKR 5,000;
• Withholding tax is deducted at source by SBP upon maturity as per FBR applicable rules & regulations;
• The profit on such securities is subject to prevailing government taxes;
• Non-paper instrument;
• Negotiable instruments and have an active secondary market as well;
• Redemption of the face value upon maturity is guaranteed by GoP;

Pakistan Investment Bonds (PIBs)

PIBs are long-term bonds issued by the Government of Pakistan and sold through SBP via periodic auctions. Salient features are:

• Currently issued in tenors of 2, 3, 5, 7, 10, 15 and 20 years etc.;
• Denominated in multiples of PKR 100,000;
• PIBs of different tenors bear different coupon rates (fixed & floater) which are payable periodically whereas profit on zero coupon bond is paid at maturity;
• Withholding tax is deducted at source by SBP on the interim coupon payments made as per FBR applicable rules & regulations;
• The profit on such securities is subject to prevailing government taxes;
• Non-paper instrument;
• Negotiable instruments and are traded in the secondary market as well;
• Redemption of the face value upon maturity and periodic coupon payments are guaranteed by GoP;

Government of Pakistan ljarah Sukuk (GoP ljarah Sukuk)

GoP ljarah Sukuks are medium term Shariah compliant bonds issued by the Government of Pakistan and sold through Pakistan Stock Exchange (PSX) via periodic auctions. Salient features are:

• Currently issued with 3, 6 & 12 months and 3, 5, 10 years to maturity etc.;
• Customer must have CDC investor sub-account for participation in PSX auction or secondary market trades;
• Denominated in multiples of PKR 5,000;
• Sukuks of different tenors bear different coupon rates (FFR & VRR) which are payable periodically whereas profit on discounted bond paid at the time of maturity;
• Currently coupon rate is linked to a weighted average of the 6-month T-Bill rate and is payable semiannually;
• Withholding tax is deducted at source by NCCPL on the interim coupon payments made as per FBR applicable rules & regulations;
• The profit on such securities is subject to prevailing government taxes;
• Non-paper instrument;
• Central Depository Company (CDC) is the custodian;
• Negotiable instruments and are traded in the secondary market through broker or CDC;
• Redemption of the face value upon maturity and periodic coupon payments are guaranteed by GoP;

How to Invest in Government Securities

Customers interested in buying Government of Pakistan Securities, need to follow the steps stated below:

• In order to open an IPS account, customer must have a bank account with MCB or with any scheduled Bank.
• After an account is opened with MCB, the customers will submit a duly filled IPS Account Opening Form Form A along with the required documents to their account maintaining branch (Please see the attached “List of Required Documents attached as Annexure - A”), or customer can open through MCB Live application or customer can open through SBP InvestPak portal/application.
• After the IPS account has been opened, the customers can invest in GoP securities through one of the following modes:
• Primary Market – Competitive Bid (CB) / Non-Competitive Bid (NCB) through the Form B via branch and Treasury sales or through digitally SBP InvestPak portal.
• Secondary Market - through filling the Form C via branch and Treasury sales or through digitally SBP InvestPak portal.
• After selection of desired investment mode, the customer will submit a duly filled respective form to his/her account maintaining branch.
• In case the customer intends to sell holdings in GoP securities, customer will contact Treasury sales directly or through account maintaining branch and digitally through SBP InvestPak portal for a price quote. In case the customer accepts the price quoted by Treasury Sales, customer will submit duly filled Form C to Treasury sales or account maintaining branch for further processing and digitally accept the price quote through SBP InvestPak portal.
• Terms and conditions apply. (As mentioned in the IPS account opening form).