Foreign investors have withdrawn a net amount of $135.5 million from Pakistan’s treasury bills as of March 14, 2025. This decision comes in response to declining interest rates and early signs of rupee depreciation. Data from the State Bank of Pakistan shows a notable shift in investor sentiment.
During this period, foreign investments in T-bills reached $16.6 million, while withdrawals totaled $152.1 million. This outflow reflects a change after strong inflows earlier in the fiscal year. From July 1, 2024, to March 14, 2025, T-bill investments totaled $1.163 billion, leading to a modest net inflow of $42 million.
Analysts point out that recent outflows, including $156.1 million in December 2024, show cautious investor behavior. This behavior likely stems from profit-taking by those who previously invested during peak inflows in 2024. Although there was a brief recovery in February with $46.9 million in inflows, the March outflow indicates ongoing caution among investors.
Looking ahead, analysts believe that future investor flows will depend on the Pakistani rupee’s performance and interest rate expectations. The State Bank of Pakistan is expected to maintain interest rates for now, with potential cuts in late 2025. This situation underscores the importance of macroeconomic stability for attracting investment.