Three nations pull $1bn from T-bills amid uncertainty

Only three countries withdrew nearly $1 billion from Pakistan’s treasury bills during the current financial year, with outflows almost matching total inflows. The near-parity between incoming and outgoing investment highlights growing investor caution despite relatively attractive returns. Efforts by the government to attract foreign investment have yielded limited results. Despite offering higher yields on T-bills compared to most developed and developing economies, foreign investors remain concerned about Pakistan’s fragile external sector. While some macroeconomic indicators and foreign exchange reserves have shown improvement, the country remains burdened by some $25bn in annual external debt servicing. To manage this pressure, the government continues to seek support from the International Monetary Fund (IMF) and is actively trying to reschedule debt with China, the UAE and Saudi Arabia.