Pakistan attracts $75.5 million foreign investment in T-bills

WEB DESK: Pakistan has continued to draw substantial foreign investment into its Treasury bills (T-Bills), with a notable net inflow of $75.5 million from overseas investors within the first 17 days of May, according to the latest data released by the State Bank of Pakistan (SBP).

The country attracted a net flow of $25.6 million into T-Bills during May, reflecting a growing confidence among investors spurred by improving economic conditions and a stable exchange rate.

The SBP data reveals that in the current fiscal year to date, Pakistan has witnessed a significant net inflow of $232.5 million into T-Bills through Special Convertible Rupee Accounts (SCRA).

This scheme allows foreign individuals, institutions, and non-resident Pakistanis to invest in various instruments, including equities, government bonds, and Term Finance Certificates (TFCs). Under this programme, the invested funds are converted into Pakistani rupees and credited to the investor’s Special Convertible Rupee account.

T-Bills remain particularly attractive to foreign investors due to their high returns. The bonds offer an impressive yield of 21 per cent for three-month and six-month papers, and 20.1 per cent for 12-month papers, with returns paid in Pakistani rupees.

This influx of hot capital highlights a renewed confidence in Pakistan’s financial instruments, driven by the allure of high returns and a stable macroeconomic environment.

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