KARACHI: Foreign investors poured about $171 million into Pakistan’s government securities during the first 50 days of the current fiscal year, with Treasury bills attracting the bulk of the inflows at $126.9m and long-term Pakistan Investment Bonds (PIBs) drawing $44m.

However, the momentum remained concentrated in short-term debt during August, as T-bills attracted another $46.7m in the first 21 days of the month while PIBs received no fresh foreign investment, latest data issued by the State Bank showed.

The renewed interest in domestic bonds is likely due to relatively high returns, as yields around 12 per cent remain attractive compared to many international markets.

PIBs had remained relatively unattractive to foreign investors over the past two years, but the fresh inflows into long-term bonds in FY27 are being viewed by market participants as a positive sign.

Foreign investors buy T-bills worth $126.9m, put $44m into PIBs

Foreign investors also put $82.8m into the equity market during the first 50 days of FY27, taking total inflows across equities, T-bills and PIBs to about $253m. Cumulative outflows during the period stood at around $214m.

T-bills recorded outflows of $81.4m against inflows of $126.9m, while PIBs saw outflows of $64m against inflows of $44m.

Market analysts said the return of foreign investment to long-term PIBs was encouraging, adding that some matured amounts were also being reinvested.

Investment from Gulf countries has traditionally been important for Pakistan’s domestic debt market, but regional conditions have changed amid the prolonged conflict between the US and Iran, which has affected the incomes of oil-producing countries.

In the case of the UAE, inflows into T-bills stood at $10m against outflows of $10.4m. PIBs saw inflows and outflows of $20m each during the 50-day period.

The UK remained one of the more active investors in T-bills, investing $51.4m during the period against outflows of $28.5m. It made no investment in PIBs.

The United States invested $23m in T-bills with no outflow recorded during the period. It also invested $6m in PIBs against outflows of $1.9m.

Bahrain invested $20m in T-bills, while outflows stood at $42.5m. It made no fresh investment in PIBs, while outflows from PIBs amounted to $40.2m, indicating that matured holdings were withdrawn.

Published in Dawn, August 29th, 2026