In positive development, $6 billion to be injected in the Pakistani economy

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In positive development, $6 billion to be injected in the Pakistani economy

*ISLAMABAD - As signs of economic stabilization emerge, financial expert anticipates foreign investment in Pakistan to hit $6 billion by the end of this fiscal year.*

“At the beginning of the current fiscal year, we were anticipating foreign investment of up to $3 billion to $4 billion, but looking at the present scenario, these figures seem quite low, we could now hit $5bn to $6bn," said CEO Topline Securities, Mohammad Sohail .

The financial expert said that international investor has no better option elsewhere as interest rates are declining globally, Pakistan is the only exception where one can reap double digit returns.

“The international investors, are not only confident on the stabilization of Pakistan economy, they are also optimistic that the IMF quarterly monitoring would keep the economy on track, and lastly the investor believes that the PKR would not depreciate further," said Sohail.

Foreign investment in the government's debt instruments, including Market Treasury Bills (T-bills) and Pakistan Investment Bond (PIBs) surged to $2.26 billion during this fiscal year (FY20).

According to State Bank of Pakistan (SBP), foreign investment in T-bills has recorded largest single day inflows of $536 million on January 16, 2019 in Special Convertible Rupee Account (SCRA). With the arrival of these inflows total net foreign investment in T-bills and PIBs reached $2.26 billion.