In another positive development, Pakistani Rupee rise Against US dollar attracts $2 for Pakistani economy

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In another positive development, Pakistani Rupee rise Against US dollar attracts $2 for Pakistani economy

*KARACHI: **In another positive development, Pakistani Rupee rise Against US dollar attracts $2 for Pakistani economy.*

Foreigners have continued to step up investment in Pakistan’s debt instruments, helped strengthen the country’s foreign exchange reserves to over $8 billion at the beginning of November.

The return of stability to the rupee-dollar parity coupled with high rates of return on debt instruments encouraged foreigners to resume investment in Pakistan.

They invested a net $678 million in the debt instruments in the past around five months – July-November 2019, the State Bank of Pakistan (SBP) reported earlier this week.

“The investment has partly helped strengthen the country’s foreign currency reserves (held by the SBP),” Arif Habib Limited Head of Research Samiullah Tariq 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 bank reported last week.

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 the reserves later in the month and subsequently in the current fiscal year.

“Foreigners are expected to invest a net $2 billion in T-bills in the current fiscal year,” Tariq anticipated.

Breakdown of the investment suggested that foreigners had invested $675 million in three, six and 12-month T-bills, which offered a rate of return of up to 13.28%. They have invested another $3 million in three-year Pakistan Investment Bonds (PIBs), which give a return of 11.8%.

Economy