KARACHI: In the first six months of the current fiscal year (6MFY22), the outflow of dollars from stocks, Treasury bills (T-bills), and Pakistan Investment Bonds (PIBs) surpassed one billion dollars, according to figures released by the State Bank of Pakistan (SBP) on Wednesday.
Despite half a billion dollars in inflows in stocks and other securities, the SBP statistics shows a net outflow of $492 million from July to December FY22. Inflows totaled $515 million, with outflows totaling $1007.4 million. During this time, stocks received $272.5 million in inflows, compared to $661 million in outflows. T-bills received $151.4 million, while PIBs attracted $91.1 million, against outflows of 268.7 million and $77.5 million, respectively.
Also read: PIBs help the SBP raise Rs158 billion
The SBP has been making efforts to attract dollars through the domestic bonds. However, the papers could not attract investments as they did in the beginning of 2020 before the Covid-19 pandemic made its way to Pakistan.
Both the equities and T-bills noted net outflows while the PIBs succeeded to hold $13.6m as net inflow during the period. Talking to Dawn, bankers said the recent increase in the interest rate, which saw a hike in return on both the government papers in double digits, could again attract foreign investments in coming months.
However, the bankers were not sure whether the worsening current account deficit of the economy would allow the investors to park their money in domestic bonds.
The SBP data showed that the highest inflows during 6MFY22 were from United States at $212.9m while the outflow was $472m. The inflows from USA were highest for equities at $132.2m while $80.7m for PIBs.
The inflows from the United Kingdom in equities were 28.8m, for T-bills $64.9m and 9.6m for PIBs. The total inflows from the UK were $103.4m compared to outflow of $247.9m in 6MFY22.
The inflows from United Arab Emirates were $92.7m against an outflow of $48.8m, leaving $44m as net inflow for the country during this period.