Pakistan recorded its largest monthly net foreign inflows into sovereign bonds in 19 months, reported Bloomberg.
Net inflows into government bonds reached $176 million in January, compared with net outflows of $50 million in the same month last year, according to data from the State Bank of Pakistan (SBP).
About 85 percent of the inflows were directed toward short-term bonds with maturities of one year or less.
The inflows coincide with a sustained recovery in the Pakistani rupee, which has rebounded from its July low and is on track to post gains against the US dollar for an eighth consecutive month.
Market analysts attribute the increased foreign participation to currency stability and improving macroeconomic indicators. BMI, a unit of Fitch Solutions, expects policymakers to maintain the rupee at around 280 per US dollar in 2026.
Government officials have cited currency stability, strengthening external balances, and policy continuity as key factors supporting renewed foreign investor interest in local debt markets.
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