{"id":4078,"date":"2025-06-25T13:41:01","date_gmt":"2025-06-25T08:41:01","guid":{"rendered":"https:\/\/youdigital.pk\/en\/?p=4078"},"modified":"2025-06-25T13:41:01","modified_gmt":"2025-06-25T08:41:01","slug":"t-bill-inflows-stay-strong-despite-india-pakistan-conflict","status":"publish","type":"post","link":"https:\/\/youdigital.pk\/en\/2025\/06\/25\/t-bill-inflows-stay-strong-despite-india-pakistan-conflict","title":{"rendered":"T-Bill Inflows Stay Strong Despite India-Pakistan Conflict"},"content":{"rendered":"

ISLAMABAD: Despite heightened tensions with India, Pakistan has continued to see robust foreign investment in treasury bills.<\/strong><\/p>\n

The State Bank of Pakistan (SBP) reported $73.6 million in foreign inflows into T-bills during May 2025.<\/p>\n

India launched an attack on May 6, but investment behavior in government debt instruments remained stable.<\/p>\n

Foreign investment is generally expected to retreat during times of conflict.<\/p>\n

However, the opposite occurred in Pakistan\u2019s case.<\/p>\n

Equity markets, on the other hand, showed signs of stress with higher outflows than inflows.<\/p>\n

Equity Investors Exit, T-Bill Investors Stay<\/strong><\/p>\n

According to SBP data, May saw $38.7 million in equity inflows but $64.6 million in outflows.<\/p>\n

T-bills recorded $73.6 million in inflows and $66 million in outflows.<\/p>\n

The UAE contributed the highest T-bill inflow at $50 million.<\/p>\n

The UK saw the largest outflow at $62 million.<\/p>\n

Analysts believe Pakistan\u2019s secure T-bill instrument remains attractive to overseas investors.<\/p>\n

Despite international uncertainty, confidence in short-term sovereign debt remains intact.<\/p>\n

Falling Returns Impact Long-Term Outlook<\/strong><\/p>\n

The overall FY25 (July\u2013May) T-bill inflows reached $1.247 billion.<\/p>\n

However, outflows exceeded inflows at $1.447 billion due to falling returns.<\/p>\n

The SBP has cut interest rates from 22% to 11% since June last year, making T-bills less lucrative.<\/p>\n

Pakistan has been struggling to boost foreign direct investment, which has stagnated at around $2 billion annually.<\/p>\n

A special investment council has been formed but has yet to yield significant results.<\/p>\n

Meanwhile, the government borrowed Rs3.7 trillion from banks in FY25, down from Rs7.76 trillion last year.<\/p>\n","protected":false},"excerpt":{"rendered":"

ISLAMABAD: Despite heightened tensions with India, Pakistan has continued to see robust foreign investment in treasury bills. The State Bank of Pakistan (SBP) reported $73.6 million in foreign inflows into T-bills during May 2025. India launched an attack on May 6, but investment behavior in government debt instruments remained stable. Foreign investment is generally expected …<\/p>\n","protected":false},"author":6,"featured_media":4080,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[1371,271,1310,348,302,1959],"class_list":["post-4078","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international","tag-china","tag-economy","tag-investment","tag-oil","tag-sanctions","tag-treasury"],"_links":{"self":[{"href":"https:\/\/youdigital.pk\/en\/wp-json\/wp\/v2\/posts\/4078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/youdigital.pk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/youdigital.pk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/youdigital.pk\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/youdigital.pk\/en\/wp-json\/wp\/v2\/comments?post=4078"}],"version-history":[{"count":1,"href":"https:\/\/youdigital.pk\/en\/wp-json\/wp\/v2\/posts\/4078\/revisions"}],"predecessor-version":[{"id":4081,"href":"https:\/\/youdigital.pk\/en\/wp-json\/wp\/v2\/posts\/4078\/revisions\/4081"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/youdigital.pk\/en\/wp-json\/wp\/v2\/media\/4080"}],"wp:attachment":[{"href":"https:\/\/youdigital.pk\/en\/wp-json\/wp\/v2\/media?parent=4078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/youdigital.pk\/en\/wp-json\/wp\/v2\/categories?post=4078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/youdigital.pk\/en\/wp-json\/wp\/v2\/tags?post=4078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}