- Highest inflows of $50 million come from the UAE, while the largest outflow of $62 million was recorded to Britain
Foreign investment in Pakistan’s treasury bills reached $73.6 million in May, despite the conflict with India. In contrast, the equity market saw higher outflows than inflows during the same period, with $64.6 million leaving the market.
The State Bank’s latest data shows that up to May 23, 2025, foreign inflows in T-bills were $73.5 million, while outflows totaled $66 million. The highest inflow of $50 million came from the UAE, while the largest outflow of $62 million went to Britain.
In the equity market, inflows amounted to $38.7 million, while outflows were $64.6 million. Despite the rising tensions, investors appear to have remained confident in the T-bills market, though the equity market faced challenges.
Pakistan’s foreign direct investment has stagnated around $2 billion annually for over a decade. The country continues efforts to attract foreign investment through incentives, but results have been modest.
For the July-May period of FY25, T-bill inflows totaled $1.247 billion, while outflows amounted to $1.447 billion. The decline in returns on T-bills, following the State Bank’s interest rate cut to 11% from 22%, has contributed to the higher outflows.
The government has also raised funds through the stock exchange by issuing Sukuk bonds, and borrowing from banks stood at Rs3.7 trillion during the period, lower than Rs7.76 trillion borrowed last year.
