Pakistan’s stock market witnessed a surge of foreign investment via Specially Convertible Rupee Accounts (SCRA) in the week ended on January 19, 2024.
According to the State Bank of Pakistan (SBP), the net purchase of securities by foreign investors amounted to Rs 18.56 billion in the period under review, the highest level since February 14, 2020.
The gross sale of securities was recorded at Rs 12.2 billion which is higher than $3.72 billion during the last week, while the total purchase of securities was recorded at Rs 30.76 billion, higher Rs 27.17 billion from prior week.
The inflow of foreign funds through SCRA reflects the growing confidence of overseas investors in Pakistan’s economic prospects, amid a positive current account balance, a stable exchange rate, and a gradual recovery of the industrial sector.
The SCRA mechanism allows non-resident investors to invest in Pakistani securities without opening a bank account in the country. The remittance into these accounts stood at Rs 19.4 billion, while the outflow was Rs 1.55 billion. The closing balance of SCRA was Rs24.78 billion.
