Foreign investment in Pakistan's T-bills reached a net $81.2 million in the first 23 days of October, the strongest monthly inflow since January, according to State Bank of Pakistan (SBP) data. The central bank’s figures show overseas buyers returning to short-term government paper after three quieter months at the start of the fiscal year.
Market analysts linked the October rise to fresh money rather than the rolling over of bills that were already maturing. That distinction matters because new buying adds demand, while pure reinvestment mainly replaces paper that is falling due.
Where the October money came from
Investors from the United Arab Emirates put in $49.7 million. The United Kingdom contributed $17.8 million, and Bahrain $13 million. Together, the UAE and Bahrain accounted for about 77% of October’s T-bill inflows.
T-bills are short-term loans the government raises from the market, usually for a few months. Foreign interest in them can shift with interest rates, inflation and how investors judge Pakistan’s near-term outlook.
Rate rise and longer-term bonds
The inflows followed an SBP decision to lift its benchmark policy rate by 50 basis points to 12%. A basis point is one-hundredth of a percentage point, so the move was half a percentage point. October inflation stood at 9.6%, leaving the real policy rate — the gap between the policy rate and inflation — at about 2.4%.
Foreigners also added $210.3 million to Pakistan Investment Bonds (PIBs), which are longer-term government bonds. Analysts said the stronger PIB interest pointed to demand for longer-term yields rather than only the shortest paper.
FY27 picture so far
Across FY27 — Pakistan’s fiscal year that runs from July — net T-bill investment stood at $63.9 million after net withdrawals of $17.3 million between July and September. Adding the PIB buying, total net inflows into government debt securities came to about $274 million. That sum is roughly 1.3% of the SBP’s $21.5 billion foreign exchange reserves.
Timeline: what has happened so far
- July–September: Foreigners withdrew a net $17.3 million from T-bills.
- After the SBP rate move: The benchmark rate was raised by 50 basis points to 12%.
- October (first 23 days): Net foreign T-bill buying reached $81.2 million, the strongest monthly inflow since January.
- FY27 to date: Net T-bill investment stood at $63.9 million; total net inflows into government debt securities were about $274 million, including $210.3 million in PIBs.
- October inflation: Consumer prices rose 9.6%, putting the real policy rate near 2.4%.
Aasan alfaaz mein
October ke pehle 23 dinon mein bahar ke investors ne Pakistan ke T-bills mein net 81.2 million dollar lagaye. Ye January ke baad kisi bhi mahine ka sab se bara inflow hai. UAE, UK aur Bahrain ne zyada hissa diya, aur PIBs mein bhi 210.3 million dollar aaye. Seedha matlab yeh hai ke sarkari qarz ke papers mein thori foreign capital aa rahi hai, jo reserves ke hisab se chhoti lekin musbat madad ho sakti hai.
