Pakistan’s recent surge in foreign investment, evidenced by a $20.6 million net flow into T-Bills through Special Convertible Rupee Accounts (SCRA), highlights a positive trend in the country’s economic landscape. This influx follows a robust performance last month, with $89.2 million in net flows into T-Bills, indicating growing confidence in Pakistan’s economic stability and exchange rate.
Throughout the current fiscal year, Pakistan has witnessed a substantial net flow of $152 million in T-Bills through SCRA, emphasizing the attractiveness of these investment avenues. The allure of T-Bills lies in their appealing returns, with rates reaching 21.66% for three-month T-bills, 21.39% for six months, and 20.90% for 12-month papers, all denominated in Pakistan rupees (PKR).
SCRA serves as a gateway for foreign entities, institutions, and non-resident Pakistanis to participate in Pakistan’s financial markets by investing in various instruments, including equities, government bonds, and TFCs (Term Finance Certificates). This platform facilitates seamless transactions, allowing foreign investors to convert their funds into PKR and deposit them into their “Special Convertible Rupee” accounts.
The increased foreign investment through SCRA underscores the confidence of investors in Pakistan’s economic prospects and the stability of its financial markets. Moreover, it reflects the effectiveness of measures taken by the government and regulatory authorities to create an environment conducive to foreign investment.
Overall, the inflow of foreign investment through SCRA not only bolsters Pakistan’s economic resilience but also contributes to its broader financial inclusion and market development objectives.
