Benefits Of Investment In Government Bonds

Major benefits are;
  1. Government securities are relatively safer investments
  2. An active secondary market of government securities allows investors to buy/ sell securities at any time in the secondary market.
  3. Regular and predictable income stream in form of periodic coupon payments
  4. Less risk/ volatility in prices/ returns compared to other investments like equity
  5. Cater to investors needs and preferences, by offering flexibility of tenor of investment, interim cash flows, and both Conventional and Islamic investment options

Note: Although, the government bonds carry no default risk, in case of selling the bond before maturity the price of bond may change (upward/ downward) in the market due to interest rate movement and market liquidity condition.

Government of Pakistan (GOP) Securities

Government of Pakistan (GOP) offers several types of securities that suit the needs of different investors. Government securities can be purchased by investors from the auctions conducted by State Bank of Pakistan (primary market), or from other investors (e.g. Banks) who hold the securities already issued in previous auctions (secondary market).

Government Securities currently being offered are as follows: