*KARACHI: **In another positive development, Pakistani Rupee rise AgainstUS dollar attracts $2 for Pakistani economy.*
Foreigners have continued to step up investment in Pakistan’s debtinstruments, helped strengthen the country’s foreign exchange reserves toover $8 billion at the beginning of November.
The return of stability to the rupee-dollar parity coupled with high ratesof return on debt instruments encouraged foreigners to resume investment inPakistan.
They invested a net $678 million in the debt instruments in the past aroundfive months – July-November 2019, the State Bank of Pakistan (SBP) reportedearlier this week.
“The investment has partly helped strengthen the country’s foreign currencyreserves (held by the SBP),” Arif Habib Limited Head of Research SamiullahTariq said while talking to The Express Tribune.
Foreign currency reserves, held by the central bank, surged $443 million to$8.35 billion in the week ended on November 1, 2019, the central bankreported last week.
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In the current month of November, the foreigners have so far invested a net$235 million. The investment is expected to give a further boost to thereserves later in the month and subsequently in the current fiscal year.
“Foreigners are expected to invest a net $2 billion in T-bills in thecurrent fiscal year,” Tariq anticipated.
Breakdown of the investment suggested that foreigners had invested $675million in three, six and 12-month T-bills, which offered a rate of returnof up to 13.28%. They have invested another $3 million in three-yearPakistan Investment Bonds (PIBs), which give a return of 11.8%.
