India War: T-Bill Inflows Unaffected – Business News
- KARACHI, Pakistan - Despite recent Indian aggression, Pakistan's treasury bills (T-bills) have seen a surprising influx of foreign investment, according to State Bank data.
- The state Bank reported that foreign inflows into T-bills reached $73.6 million up to May 23 of fiscal year 2025.
- May data indicates T-bill inflows totaled $73.5 million, while outflows reached $66 million.
defying geopolitical tensions, Pakistan’s T-bills witnessed a surge of foreign investment, totaling $73.6 million, even amidst Indian aggression. This influx of foreign investment into T-bills reveals a resilient financial landscape, contrasting with equity market outflows. The United Arab Emirates led inflows with $50 million, while Britain experienced the largest outflows. Despite declining returns and reduced interest rates, the government continues to leverage T-bills and Sukuk bonds for financing. The financial sector highlights the perceived security of T-bills for investors.News Directory 3 provides a extensive analysis of market dynamics. Discover what’s next as the government navigates these economic currents and seeks to attract further investment.
Pakistan Investment: T-Bills Defy Indian Aggression, Equity Impacted
Updated June 25, 2025
KARACHI, Pakistan – Despite recent Indian aggression, Pakistan’s treasury bills (T-bills) have seen a surprising influx of foreign investment, according to State Bank data. though, the equity market experienced critically importent outflows during the same period.
The state Bank reported that foreign inflows into T-bills reached $73.6 million up to May 23 of fiscal year 2025. This occurred despite india’s attack on pakistan May 6. Typically, international crises trigger rapid capital flight.
May data indicates T-bill inflows totaled $73.5 million, while outflows reached $66 million. In contrast, the equity market saw inflows of $38.7 million against outflows of $64.6 million.
The highest inflow of $50 million came from UAE,while Britain received the biggest outflow of $62m
While the situation within Pakistan has remained relatively stable,continued threats from India have not deterred all investors. Foreign direct investment in Pakistan has remained stagnant at approximately $2 billion annually for over a decade. Efforts to attract foreign investments through incentives have yielded limited results.
During the July-May period of fiscal year 2025, T-bill inflows totaled $1.247 billion,but outflows reached $1.447 billion,largely due to declining returns.The State Bank has reduced the interest rate from 22% to 11% since June of last year, diminishing the attractiveness of T-bills.
The financial sector suggests that overseas Pakistanis are investing in T-bills due to their perceived security.The government is also borrowing through the stock exchange by issuing Sukuk bonds. State Bank data reveals the government has borrowed 3.7 trillion rupees from banks, despite a 2.7 trillion rupee profit provided by the State Bank earlier in the fiscal year.
Government borrowing from banks during July-May of fiscal year 2025 was substantially lower than the 7.76 trillion rupees borrowed during the same period in the previous fiscal year. The role of foreign investment and T-bills remains crucial for Pakistan’s economy.
What’s next
Pakistan will likely continue its efforts to attract foreign investment through various incentives, while monitoring the impact of geopolitical tensions on investor confidence.