Pakistan⁣ experienced a notable increase ⁢in foreign​ investment ⁣during October and ‍the ⁤first four months of⁣ the current financial year, largely driven by ​inflows from Arab countries. This​ positive trend coincides with a recent defence⁣ pact signed with Saudi Arabia and a ceasefire in Gaza, factors that have⁢ contributed to​ reduced regional uncertainties. A Saudi delegation⁣ recently visited Pakistan to explore potential investment opportunities.
‍

Investment Breakdown and Key players

​ ‍ ‍ Data indicates that the‍ United Arab Emirates (UAE) led investment inflows with $112.5 ‍million.⁤ The UAE is already Pakistan’s largest trade ⁣partner. However, the article notes a concerning trend:‍ several companies have⁤ relocated to ‍Dubai due to challenges within Pakistan, specifically high electricity prices and inadequate internet ⁢infrastructure. ⁤
‌

Other notable investors in October​ included Bahrain ($63 million),‍ the United States ($47.6 million), and ​the ‍United Kingdom ($9.6 ‍million).

Treasury Bill (T-Bill) ‍Performance

‌ ⁣ The State Bank ⁢of Pakistan reported that inflows into Treasury​ Bills (T-bills) between July and October of FY26 totaled $333 million, while outflows during the same period reached $213 million.​ This results ‌in ⁣a⁤ net inflow of ⁣$120 million from‌ T-bill investments.

‍ The government offers T-bills with maturities of one, three, six, and twelve months.⁢ yields currently hover around 11%, experiencing minor fluctuations.
⁣

Expert Analysis and Future ‍Outlook

Banking experts acknowledge that the current net investment remains modest. Though, they express ⁣optimism that increased inflows will improve the ​situation⁤ in the coming months. A⁤ key concern raised by bankers is that the 11% yield on ‍Pakistani T-bills is‍ still comparatively high when benchmarked‍ against similar⁢ instruments in other emerging and developed ‍markets. This⁢ higher yield may be necessary to attract investment given perceived risks.
​ ⁣