ISLAMABAD -;Foreign investors from the UK and the USA are making handsomeinvestments in the government’s papers, particularly T-Bills, due tolucrative and short-term profits.
According to the State Bank of Pakistan, investors from the UK remained atthe top for T-bills with an investment of more than $1.5 billion in thepast seven months of the current financial year.
Investors from the USA also invested an amount of $0.75 billion in T-Billsduring the same period with foreign investment pouring in the country at arecord level. Investors from these countries were focusing on Pakistan’sdebt instruments as major global fund managers were mostly operating in thetwo developed countries.——————————
Market Treasury Bills or T-Bills are the instruments that the central bankfloats in the market to raise the money for a period of three to 12 months.Usually, financial institutions make the investment in such governmentpaper and books guaranteed and easy returns, however, this timeoverwhelming foreign investment is being witnessed.
Moreover, the central bank waved off taxes on the investment on thegovernment’s papers earlier in January.
According to analysts, foreign investors have booked at least 20% on suchinvestments so far in Pakistan—which is highly attractive in terms ofinvestment throughout the world. They will continue to make handsomereturns even if the interest/profit rates drop gradually in the comingmonths.
Read Top Stories
Besides investors from UK and USA, fund managers from other countries,including Luxembourg, the UAE, Bahrain, Cayman Islands and Ireland havealso started making investments in Pakistan.
These investors are also making investments in the stock market andlong-term Pakistan Investment Bonds as early $2.5 billion foreigninvestment has been received so far in T-Bills, PIBs, and equity markets bythe country in the last seven months.
The inflows of investments significantly improved the level of foreignexchange reserves of the country stabilizing the exchange rate of Dollarversus Rupee and impacted positively on the current account situation aswell.
