KARACHI: Foreign investments in treasury bills (T-bills) surged in October, signalling a positive shift for the economy, which is receiving both favourable and unfavourable signals.

The latest data of the State Bank showed T-bills attracted $118.6 million in October, the highest monthly inflow during FY26.

Experts and analysts believe that some economic indicators with a changed regional situation have brought stability in Pakistan. They said Arab countries are willing to invest in Pakistan, while the United States is also willing to invest in mining and other sectors. The defence pact with Saudi Arabia and the ceasefire in Gaza have also reduced the uncertainties in the region. Saudi Arabia recently sent a delegation to explore investment opportunities in Pakistan.

The data shows that most of the investment in October and during the four months of the current financial year came from the Arab countries. The highest inflow of $112.5 million came from the UAE, which is Pakistan’s largest trade partner, and several companies have shifted to Dubai due to high electricity prices and poor internet quality in Pakistan.

The inflows from Bahrain were $63m, $9.6m from the UK and $47.6m from the US in October.

The State Bank reported that inflows into T-bills during July-October FY26 totalled $333m, while outflows during the same period totalled $213m.

Banking experts said the net investment is low, but the higher inflows would improve the situation in the coming months. Some bankers said the yield on T-bills is still very high compared to other emerging and developed markets. The government offers one-month, three-month, six-month, and 12-month papers, while yields, with slight fluctuations, remain around 11 per cent.

Published in Dawn, November 13th, 2025