Pakistan’s foreign investors withdrew $167 million from treasury bills in April. The total investments reached $1.168 billion, but divestments amounted to $1.355 billion. This caused a net outflow of $187 million from July 2024 to April 2025. Experts say investor confidence is falling due to multiple issues. These include lower interest rates, trade tensions, and rising geopolitical risks. Data from the State Bank of Pakistan shows that investor behavior changed during April. Initially, they invested $5.023 million until April 18. Later, they withdrew $172.3 million, leading to the monthly outflow. This trend is part of a larger pattern, with outflows reaching $197.4 million in March and $164.9 million in April up to the 11th. Market analysts blame these declines on profit-taking and a 10 percentage point drop in interest rates. Concerns over the rupee’s depreciation and geopolitical tensions also play a role. Experts warn that tensions between India and Pakistan add to the uncertainty. Additionally, US tariffs and trade war fears increase global economic worries. In response, Pakistan’s central bank kept interest rates steady at 12 percent in March to avoid more risks. Still, the SBP expects inflation to fall and believes real interest rates will support recovery. Analysts now anticipate a rate cut to 11.5 percent in the upcoming policy meeting. Overall, foreign investor confidence remains cautious amid ongoing economic and geopolitical challenges.