Foreign investors have put more than a billion dollars of T-Dills bills during the first eight months of the 25th fiscal year, although the return is low. However, data from the State Bank in Pakistan (SBP) show that 84 % of this flow has been withdrawn during the same period.
The returns on T-Bells began to decrease in the 25th year, driven by a sharp decrease in inflation and interest rates. The SBP policy rate has been reduced from 22 % to 12 %, and the return on T-BILS followed a similar decrease.
According to SBP, T-BILS attracted $ 1.147 billion of investment during July-February from July 25, with strong monthly flows remaining despite the decrease in revenues. However, withdrawals were great during this period.
Foreign investors have focused on short -term T boxes, taking advantage of high returns, while largely avoiding long -term investments such as investment bonds in Pakistan.
Financial experts suggest that many capital of these countries probably belong to Pakistanis abroad, as the revenues on T -lds were much higher than those in the United Kingdom and the United Arab Emirates, where the revenues range in 3-5 %.
The UK constituted the largest share of flows, with $ 701 million, or 61 % of the total, followed by $ 222 million from the United Arab Emirates. Other prominent flows included $ 71 million from Bahrain and $ 64 million from Australia.
However, the UK also led withdrawals, with $ 552.5 million, including the manager and profit. The United Arab Emirates and Australia have followed $ 137 million and $ 41 million, respectively. In total, 969 million dollars, or 84.5 % of the flows were withdrawn during this period.
The high revenues had previously attracted foreign investments in government securities, but the 2019 pandemic has strongly affected this trend. Since then, foreign investors have been reluctant to adhere to long investments, which led to a continued alignment of a document of flows and external flows in T-BelLs.
