- August 31, 2026
- Posted by: Tresmark
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Foreign investors invested around $171 million in Pakistan’s government securities during the first 50 days of FY27, with short-term Treasury bills (T-bills) receiving the majority of the inflows, according to latest data from the State Bank of Pakistan (SBP).
T-bills attracted approximately $126.9 million during the period, while long-term Pakistan Investment Bonds (PIBs) received around $44 million.
Foreign investment remained heavily tilted towards short-term securities during August. T-bills attracted an additional $46.7 million in the first 21 days of the month, while PIBs recorded no fresh inflows during the same period.
Market participants attributed the renewed interest in domestic debt largely to Pakistan’s relatively attractive yields, with returns of around 12% offering competitive opportunities compared with several international markets.
PIBs had struggled to attract significant foreign investment over the past two years. Their return to the radar of international investors during FY27 is therefore being viewed as a positive development, particularly as some maturing investments are reportedly being rolled over.
Foreign investors also invested around $82.8 million in Pakistan’s equity market during the first 50 days of FY27, taking combined inflows into equities, T-bills and PIBs to approximately $253 million. Total outflows during the period stood at around $214 million.
Despite the gross inflows, T-bills recorded outflows of $81.4 million, compared with inflows of $126.9 million. PIBs registered $64 million in outflows against $44 million in fresh inflows.
Analysts said renewed foreign participation in long-term PIBs was encouraging and could indicate improving investor confidence in Pakistan’s domestic debt market.
Gulf investors have traditionally played an important role in Pakistan’s government securities market. However, regional economic conditions have been affected by the prolonged US-Iran conflict, which has also created pressure on oil-producing economies.
Investment patterns from the UAE remained relatively balanced, with $10 million entering T-bills against $10.4 million in outflows. PIBs recorded $20 million in inflows and an equal amount in outflows during the period.
The UK remained among the more active participants in the T-bill market, investing $51.4 million against outflows of $28.5 million. It made no fresh investment in PIBs.
US investors placed $23 million in T-bills without any reported outflows, while another $6 million was invested in PIBs against outflows of $1.9 million.
Bahrain invested $20 million in T-bills but recorded outflows of $42.5 million. It made no new investment in PIBs, while PIB outflows reached $40.2 million, suggesting withdrawals of matured holdings.
