Foreigners pull out largest T-Bill amount in 30 months

September 06, 2024 (MLN): Foreign investors pulled a record amount of money from Pakistani T-Bills in the first half of August, the largest monthly outflow since March 2022, with 15 days still to go.

T-Bills through Special Convertible Rupee Accounts (SCRA) showed a net outflow of $78.15 million as of August 16, 2024, according to the central bank data.

The yields on these bonds have decreased in the last few months as the central bank continues monetary easing in a bid to spur growth that has lagged behind its potential.

The State Bank of Pakistan (SBP) has slashed interest rates by a cumulative 250 basis points in the last two meetings and is scheduled to meet again on September 12.

Cut off yields now stand at 17.4799% for 3 month papers, 17.7399% for 6 month papers, and 16.9989% for 12 month papers.

Despite the outflow, foreign investment in Pakistani bonds has been on the rise since January as the country continues to experience growing confidence amidst improved economic conditions and a stable exchange rate.

In the last fiscal year that ended in June 2024, the debt-ridden nation witnessed a notable net inflow of $580.85m in T-Bills through SCRA.

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