Equity, treasury bills (T-Bills), and Pakistan Investment Bonds (PIBs) witnessed foreign investment outflows almost three times higher than the inflows in October of FY22.
Cumulatively, the inflows added up to $58.5 million, whereas the outflows were recorded at $178.58 million, bringing the net outflows to $120 million. This trend reflects the dwindling interest of investors despite attractive returns.
Equity registered the highest outflow in October, with a total of $134.5 million withdrawn by investors compared to an inflow of $34.2 million. Similarly, in PIBs, the outflow was recorded at $30.2 million, far greater than the inflow of only $7.7 million.
However, T-Bills experienced a higher inflow than outflow. The inflows were recorded at $16.6 million against an outflow of $13.8 million during the month.
The data from four previous months (July FY22–Oct FY22) also shows that the outflows have been relatively greater than the inflows. Collectively, the three investments saw a net outflow of $565.9 million against a net inflow of $304.4 million.
During this period, the biggest outflow was seen in equity, as a total of $369 million was withdrawn by investors. A total of $142 million was also invested in equity during the same period.
Furthermore, the outflows in PIBs during these four months were $50.6 million compared to an inflow of $27.5 million. Similarly, the outflows for T-bills were $146.2m against an inflow of $134.7m during the same period.
The great increase in the outflows and the increasing gap between the inflows and outflows have been credited to the uncertain and volatile exchange rate.
