Foreign investors pull $36.6m from T-bills in a week

December 03, 2024 (MLN): Foreign investors have pulled out a substantial $36.58 million from Pakistani T-bills during the week ended November 22, 2024, State Bank of Pakistan (SBP) reported on Monday.

The sharp net outflow during the review week is attributed to the lost attractiveness among foreigners for these securities after the government further slashed yields on these securities in the auction held last week.

The cut-off yield for three-month T-bills fell to 12.9974%, the lowest level since April 6, 2022, while six-month and twelve-month yields dropped to 12.8948% and 12.3500%, respectively, marking their lowest levels since March 2022.

Following this divestment, the net outflow for the first twenty-two days of November has surged to $58.04m.

Nonetheless, foreigners have piled a net $283.47m in the current fiscal year to date through Special Convertible Rupee Accounts (SCRA) as the country continues to experience growing confidence amidst improved economic conditions and a stable exchange rate.

SCRA allows foreign persons, institutions, and non-resident Pakistanis to invest into various instruments such as equities, government bonds, and 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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