Foreign Investment in PIBs Brought $256 Million to Pakistan: SBP

Foreign investments in the Pakistan Investment Bonds (PIBs) brought net inflows of $256 million during the fiscal year (FY) 2021, according to the data issued by the State Bank of Pakistan (SBP).

The PIBs attracted $227.5 million in FY2021 while the outflow was recorded at 21.5 million.

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However, despite being substantial, the inflows in equities and T-bills were less than the outflows, which resulted in negative figures for the two segments.

Long-term domestic bonds (PIBs) remained the most attractive investments for foreign investors because of their high returns as compared to government bonds internationally. Ten-year PIBs offered a 9.84 percent return in the auction on 9 June.

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The United States of America contributed the most to the PIBs inflow at $118.5 million, followed by Luxemburg at $115.3 million.

The inflows in equity and the T-bills were much higher than the PIBs but the outflows exceeded the inflows. For equities, the outflows and inflows were recorded at $1,101 million and $681 million respectively; and for the T-bills, they were recorded at $890 million and $688 million, respectively.

The total net inflows of PIBs, T-bills, and equities were $1,647 million as compared to the outflows of $2,013 million.