Foreign investors pour $171 million into Pakistan government securities in 50 days

According to Profit, foreign investors placed roughly $171 million into Pakistan's government securities during the first 50 days of FY27, and most of it went into short-term T-bills. Latest State Bank of Pakistan data show T-bills drew $126.9 million while Pakistan Investment Bonds received $44 million. In the first 21 days of August, another $46.7 million flowed into T-bills, while PIBs recorded no fresh investment.

Market participants credited the renewed appetite for domestic debt to yields of around 12 per cent, which Profit says compares well with several overseas markets. Analysts also welcomed the return of foreign money to PIBs, since long-term bonds had drawn little interest over the past two years. Part of the recent buying appears to reflect reinvestment of maturing holdings.

Equities also drew $82.8m from foreign investors, taking combined inflows across stocks, T-bills and PIBs to about $253 million against roughly $214 million in outflows. Gulf investors have long been significant in the domestic debt market, but regional conditions have shifted amid the prolonged US-Iran conflict that has affected oil producers. UK investors stayed a large T-bill presence, with $51.4 million coming in and $28.5 million going out, while Bahrain's $20 million in T-bill purchases was outweighed by $42.5 million of withdrawals.