T-bills regain confidence of foreign investors

For the first time since the Covid-19 pandemic made its way to Pakistan in March 2020, the inflow of foreign investment in Treasury bills (T-bill) has surpassed the outflow in August despite a drastic cut in rates.

Latest data shared by the State Bank of Pakistan (SBP) shows the inflow of foreign investment in T-bills in the month up to August 16 reached $15.98 million against the outflow of $12.14m.

With the emergence of Covid19 in March 2020, foreign investment in T-bills and the Pakistan Investment Bonds (PIBs) flew back to its origin within a few months.

However, prior to the coronavirus pandemic, the inflows in the T-bills and PIBs were so rapid that these were termed ‘hot money’. The inflows reached about $3.5b within nine months since the government allowed foreign investment in domestic bonds in July 2019.