Pakistan Investment Bonds [PIBs] lured the highest foreign investment of over $100 million in March alone, reflecting rising attraction for foreign investors keen to profit from returns unto 10 percent.
On Wednesday, The latest data issued by the State Bank of Pakistan on Wednesday showed that the foreign investors invested $240.69m in the PIBs during July-March FY21.
Bankers recalled how investments in PIBs and treasury bills (up to $3.5 billion) flew out quickly within three months once the Covid-19 pandemic made it to Pakistan last year.
The coronavirus cases have been rising since last month and the government has imposed smart lockdowns in many areas but kept trade and industries open. The inflows in PIBs reflect that the investors are not scared about the worsening pandemic in the country.
The PIBs attracted $103.09m in March which was the single highest inflow during the current fiscal year. The PIBs attracted $37.6m in February this year.
For the bankers, the rising inflow in the PIBs is a reflection of improved confidence in Pakistan’s economy, particularly the current account surplus that provided additional support to their confidence.