Pakistan’s local debt market is experiencing its first annual inflow in five years, driven by attractive yields and a more stable rupee, according to a report by Bloomberg. The State Bank of Pakistan announced on Monday that net foreign inflows into treasury bills have reached $875 million in 2024, marking a significant turnaround from four consecutive years of outflows totaling $1.4 billion.
The country’s treasury bills are currently offering yields between 16 and 17 percent, which has piqued the interest of overseas investors. “Investors see a stable currency and high rates that are attracting them to Pakistan,” noted a Karachi-based wealth manager.
This positive development comes as Pakistan’s foreign reserves have surged to their highest level in over two years, following the approval of a $7 billion loan package from the International Monetary Fund (IMF).
In addition to the inflows into the debt market, Pakistan’s benchmark stock exchange index has soared by 73 percent over the past year, making it the world’s best performer. Furthermore, the country’s dollar bonds have returned nearly 40 percent in 2024, according to Bloomberg data.
