KARACHI: Foreign investments in Pakistan’s treasury bills (T-bills) saw a significant rise in October, reflecting growing investor confidence amid a mix of regional and domestic developments. According to the State Bank of Pakistan, T-bills attracted $118.6 million last month, marking the highest monthly inflow of the current fiscal year.
Most of the foreign investments came from Arab countries, with the United Arab Emirates leading at $112.5 million. Bahrain contributed $63 million, while the United Kingdom and the United States invested $9.6 million and $47.6 million, respectively. Analysts highlighted that geopolitical developments, such as the defence pact with Saudi Arabia and the ceasefire in Gaza, have reduced regional uncertainties, encouraging foreign capital flows.
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During the July–October period of FY26, total inflows into T-bills reached $333 million, against outflows of $213 million. Experts noted that while net investment remains modest, the upward trend could strengthen Pakistan’s financial stability in the coming months.
Banking analysts also pointed out that T-bill yields, hovering around 11 per cent, remain attractive compared to other emerging and developed markets, making them an appealing option for foreign investors. The government offers one-month, three-month, six-month, and 12-month T-bill papers with slightly fluctuating yields.
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With sustained foreign interest, experts said Pakistan could see increased liquidity in its debt market, bolstering confidence in the broader economy.