Foreign investment in rupee-based government debt securities, including treasury bills (T-bills) and Pakistan Investment Bonds (PIBs), is steadily increasing due to higher returns and a stable rupee-dollar exchange rate.
According to the latest data from the State Bank of Pakistan (SBP), Pakistan has attracted a net inflow of $35.6 million from foreign investors into T-bills through Special Convertible Rupee Accounts (SCRA) from the beginning of the month until May 10.
SCRA allows foreign persons, institutions, and non-resident Pakistanis to invest in various instruments, such as equities, government bonds, and term finance certificates (TFCs). Funds are converted into Pakistani rupees and credited to the depositor’s Special Convertible Rupee account.
Last month, the net inflow into T-bills was $25.6 million, reflecting growing confidence in the country’s economic conditions and stable exchange rate.
SBP data shows that in the current fiscal year to date, there has been a net inflow of $192.6 million into T-bills through SCRA.
These bonds offer returns of 21% for three-month and six-month papers, and 20.1% for 12-month papers, paid in Pakistani rupees (PKR).
