Foreign investors withdrew 149.5 million dollars from the Treasury in the market in January 2025, while the new investments amounted to 117.1 million dollars, which led to a net flow of 32.4 million dollars, according to the data issued by the State Bank in Pakistan (SBP) .
For the current fiscal year (July 1, 2024-24 January 2025), foreign investors bought $ 1.028 billion from T-BILS, while the total withdrawals amounted to $ 880.4 million, leaving a net flow of $ 148.2 million.
SBP recently reduced the standard interest rate by 100 basis to 12 %, noting that inflation and the need to support economic growth. This recent reduction has led to a decrease in borrowing costs to 1000 basis points since June 2024, making T-BILs less attractive to foreign investors.
Market analysts suggest that the external flow of $ 156.1 million in December 2024, followed by $ 32.4 million in January 2025, indicating a transformation in investor feelings after months of strong flows.
Meanwhile, PIBS investment bonds, which provide long -term investment opportunities, have failed to attract new foreign flows during the month. Instead, they recorded an external flow of $ 0.875 million in January 2025.
Despite these external flows, foreign investment in government securities is still positive for the fiscal year 2015. Between 1 July 2024 and January 24, 2025, foreign investors bought $ 1.028 billion from T-BILS, while the total withdrawal reached 880.4 million dollars, This led to a net flow of $ 148.2 million.
In the long -term bond sector, PIBS showed greater flexibility, with a total foreign investment reached $ 19.6 million in the first seven months of the 25th fiscal year, despite external flows of $ 2.04 million.
