T-bills | Pakistan

KARACHI: The war in the region has almost wiped out foreign investment in Pakistan’s domestic bonds, leaving little chance of recovery if the current situation prevails, said financial experts. The State Bank of Pakistan (SBP) data showed that foreign investors have almost left the domestic bonds, which had been their preferred choice, as returns were highest in the region and very high compared with most other countries. A day ago, the central bank further increased the yields on Treasury Bills by up to 83 basis points to almost 12pc, making them more attractive to investors. The SBP data showed that over 94pc of foreign investment in T-bills left the country by April 17. Mideast war drives 94pc outflow from treasury bills This could be a result of destabilisation due to war in the region, which is still ongoing without knowing the final outcome of this deadlock in the talks between Iran and the United States. Threats and counter-threats between the two countries have created a broad range of uncertainties, ...

KARACHI: The Indian aggression against Pakistan has not hurt, strangely enough, the inflow of foreign investment into treasury bills, while outflows from the equity market has been much higher than inflows during the same period. The State Bank’s latest update for May shows that foreign inflows in T-bills during the month (up to May 23 of FY25) reached $73.6 million. This was strange since India attacked Pakistan on May 6. It is believed that foreign investment quickly leaves a country during an international crisis. The war did not hurt inflows in t-bills, but outflows from the equity market reflected its negative impact. The State Bank data for May shows that while inflows in T-bills were $73.5m, outflows amounted to $66m. The highest inflow of $50 million came from UAE, while Britain received the biggest outflow of $62m But figures for foreign investment in equity market show that during May, inflows were $38.7m and outflows totaled $64.6m. Although the situation has remained calm in Pakistan so far despit...