PIBs attract net inflow of $256m in 12MFY21

Foreign investment in Pakistan Investment Bonds (PIBs) witnessed a cumulative net inflow of $256 million during the outgoing financial year as opposed to the trend in Treasury bills (T-bills) and equities.

As per a local media report based on latest data issued by the State Bank of Pakistan’s (SBP) on Wednesday, inflows in equities and T-bills were less than the outflows resulting into negative figures for the two segments.

The long-term domestic bonds PIBs remained attractive for foreign investors as the returns were much higher than the investments in government bonds internationally. Ten-year PIBs offered 9.84 per cent return in the auction held on June 9.

During FY21, inflows in PIBs were $277.5 million while the outflows reached $21.5m. The cumulative net inflow was $256m.

The highest inflows in PIBs were from the United States which reached $118.5m in FY21. The inflows from Luxemburg were the second highest with $115.3m but an outflow of $11.7m was also noted from the country.

Net inflow in equities was $681m against the outflow of $1,101m during the entire fiscal year, recording a net outflow of $420m. Similarly, the inflows in T-bills during FY21 were $688m while outflows were $890m. Net outflow was $202m.

The total net inflows of PIBs, T-bills and equities were $1,647m compared to the outflows of $2,013m during FY21. Net outflow of $366.6m was witnessed in FY21.