High returns drive foreign interest in Pakistani T-bills

WEB DESK: Foreign investors continue to exhibit strong interest in Pakistani Treasury Bills (T-bills), injecting an additional $57 million in the first week of June.

This follows a significant investment of $229.6 million in May, marking the highest monthly net inflow since 2020.

According to the latest data from the State Bank of Pakistan (SBP), the current fiscal year has seen a substantial net inflow of $443.6 million into T-bills through Special Convertible Rupee Accounts (SCRA). This surge reflects growing confidence in Pakistan’s economic conditions and a stable exchange rate.

Investors have been drawn to the high returns offered by these bonds, with interest rates of approximately 20 per cent for three-month and six-month papers, and 18.5 per cent for twelve-month papers, payable in Pakistani rupees (PKR).

This comes ahead of the SBP’s recent policy decisions, which have maintained higher interest rates.

SCRA enables foreign individuals, institutions, and non-resident Pakistanis to invest in various instruments, including equities, government bonds, and Term Finance Certificates (TFCs).

Under this scheme, the funds are converted into Pakistani rupees and credited to the depositor’s Special Convertible Rupee Account.

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