Pakistan continues to attract foreign hot capital in T-bills

July 01, 2024 (MLN): Foreign investors maintained strong interest in Pakistani T-Bills, injecting an additional $57 million in the first week of June.

Last month, Foreign investors had parked a significant $229.6m into T-Bills, the highest monthly net inflow since 2020.

Moreover, according to latest data from the State Bank of Pakistan (SBP), in the current fiscal year-to-date, the debt-ridden nation has witnessed a notable net inflow of $443.6 million in T-Bills through Special Convertible Rupee Accounts (SCRA).

This surge in investment comes as the country continues to experience growing confidence amidst improved economic conditions and a stable exchange rate.

Furthermore, foreign investors have also capitalized on higher interest rates ahead of the SBP's recent policy decision.

To note, these bonds offer attractive returns of around 20% for three-month and six-month papers, and 18.5% for 12-month papers, payable in Pakistani rupees (PKR).

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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