Domestic bonds attract $171m in 50 days

Foreign investors injected roughly $171 million into government securities over the first 50 days of FY27, according to Dawn, which cited State Bank data. Treasury bills drew most of that money at $126.9m, while long-term Pakistan Investment Bonds took in $44m. In August, however, short-term paper kept the lead, as T-bills gained another $46.7m in the first 21 days and PIBs received no fresh foreign money.

Foreign equity buying added $82.8m, lifting total inflows across equities, T-bills and PIBs to about $253m against outflows of roughly $214m. The UK was one of the more active T-bill buyers with $51.4m, while the United States put $23m into T-bills and $6m into PIBs. Gulf flows were mixed, with Bahrain recording $40.2m of PIB outflows that the report said reflected matured holdings being withdrawn, while UAE PIB inflows and outflows were equal at $20m each.

The report attributed the renewed interest in domestic bonds to relatively high returns, with yields around 12 per cent viewed as attractive next to many international markets. Market analysts called the return of foreign money to long-term PIBs encouraging, noting that a portion of matured amounts was being reinvested.