Foreign investment in Pakistan surpasses $3.3 billion mark in the first eight months of FY19/20

The positive change has been due to the lucrative interest rates.

According to the latest data revealed by the Central Bank, the foreign investment in Pakistan’s short-term debts has crossed the $3.3 billion mark in the first eight months of FY 2019/20. The positive change has been due to the lucrative interest rates, which continued to increase the interest of international funds in local currency bonds.

The State Bank of Pakistan’s (SBP) latest data further showed that the treasury bills having a maximum holding period of one year successfully $3.356 billion worth of investment for the period under consideration.

”The decade-high interest rate that stands at 13.25 per cent kept interest of foreign funds in short-term government debts intact over the last couple of months. Analysts are concerned over the impending impact of outflows driven by the maturity of short-term papers on foreign exchange reserves.” (THE NEWS)

Brokerage BMA Capital Executive Director Saad Hashmi, however, ruled the impact out, adding that ”as far as Pakistan is under IMF program with real exchange rate broadly in line with fundamentals”.

What are your views on this? Share in the comments bar below.

  • It is not an investment as such. It is hot money which comes for a few months and then when it goes out, a new wave of inflation and depreciation of rupee follows. It is not a blessing but a kind of poison in a gift wrap.


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