KARACHI: Foreign investment in treasury bills (T-bills) reached a recordhigh of $712.8 million in the first four months of this fiscal year.
The return of stability to the rupee-dollar parity coupled with high ratesof return on debt instruments encouraged foreigners to resume investment inPakistan.
Foreign investment in the treasury bills reached a new high of $267 millionduring November 1-12. The US, UK and the UAE have increased theirportfolios of government T-bills and Pakistan Investment Bonds. Investmentfrom the UK clocked in at $169.5 million, followed by the US ($92.6million) and the UAE ($5 million). Since the start of the current fiscalyear, foreign investment in the government securities stood at $711 million.
In a recent press conference, State Bank Governor Dr Reza Baqir rejectedthe perception that foreign investment in T-bills would fall once theinterest rates go down. He said some investors might leave but they willreturn when the economy achieves stability.
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The central bank let the rupee depreciate 52% from December 2017 toRs160.05 against the US dollar on June 30, 2019.
The rupee has largely remained stable since then. Rather, it recovered2.88% or Rs4.65 to Rs155.40 on Wednesday compared to Rs160.05 on June 30and the stability has pushed the investors to pour investment into Pakistan.
