PIBs attract net inflow of $256 million in 12 months

PIBs inflow

Foreign investment in Pakistan Investment Bonds (PIBs) attracted a cumulative net inflow of $256 million during the outgoing financial year. 

During the fiscal year 2020-21, inflows in Pakistan Investment Bonds (PIBs) were $277.5 million whereas the outflows touched the figure of $21.5 million.

As such, the cumulative net inflows were $256 million.

According to the data, issued by the State Bank of Pakistan on Wednesday, the inflows inequities and T-bills remained less than the outflows, resulting in negative figures for these two segments.

Long-term Pakistan Investment Bonds offered a 9.84 % return therefore, these bonds remained attractive for the foreign investors as compared to the government bonds internationally.

Read more: SBP amends banking regulations to boost investment in real estate

The biggest figure of inflow in PIBs was from the United States which was $118.5 million in the outgoing financial year.

The second highest investment in PIBs was from Luxemburg which came to $115.3 million. The inflow in equities was $681 million against the outflow of $1101 million during the outgoing fiscal year, showing a net outflow of $420 million. The inflows in T-bills during the last fiscal year were $688 m while outflows were $890 m. Here net outflow was $202 million.  

Total net inflows of Pakistan Investment Bonds, T-bills, and equities were $1647 million as compared to the outflows of $2013 million during the fiscal year 2020-21. Here, the net outflow was $366.6 million during the outgoing fiscal year.  

In the last month of the previous fiscal year, there was a change in the form of large inflows of $93.5 m in T-bills as compared to the outflow of $40.1 m. This change canceled the impact of a huge outflow of $136.8 m from the equity as compared to an inflow of only $48 m during this month.  

PIBs brought $22 m inflow during June whereas the outflow was zero, helping the country to remain on the positive side with net foreign investment. Pakistan’s foreign investment could not be increased during the whole fiscal year 2020-21 which came down to 27.7 % to $1.7 billion in the 11 months of the fiscal year. 

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