Foreign investment in T-Bills hits $148.6 million in May, highest since 2020

Foreign investors poured $148.6 million into Market Treasury Bills in the first 25 days of May, according to the latest data from the State Bank of Pakistan (SBP). 

This is the highest investment in T-bills since 2020. 

The current fiscal year has seen a net inflow of $300.5 million in T-Bills through Special Convertible Rupee Accounts (SCRA).

Foreign investors have been attracted by improving investor confidence and high interest rates, with T-Bills offering returns of 21% for three-month and six-month papers, and 20.1% for 12-month papers, payable in Pakistani rupees.

Last week, the SBP slashed the policy rate by 150 basis points to 20.5%. Consequently, the return on T-Bills decreased to 20.15% for three months, 19.97% for six months, and 18.95% for 12 months.