Islamabad, April 10: Pakistan has experienced a significant outflow of foreign investment in its treasury bills (T-bills), with just three countries—the United Kingdom, the United Arab Emirates, and the United States—withdrawing nearly $1 billion during the current financial year.
This highlights growing investor caution amid the country’s fragile economic conditions.
According to the State Bank of Pakistan (SBP), between July 1, 2024, and March 14, 2025, inflows into T-bills totaled $1.163 billion, while outflows reached $1.121 billion, leaving a net investment of merely $42 million.
This near parity between inflows and outflows suggests investors are pulling out funds almost as quickly as they are entering, despite Pakistan offering some of the most attractive yields in comparison to both developed and developing economies.
The United Kingdom, historically Pakistan’s largest T-bill investor, had invested $710 million during FY25, but has already withdrawn $625 million, a significant reversal of its earlier commitment.
Similar trends are being observed with investors from the UAE and the US.
A financial analyst noted that foreign investors remain wary of Pakistan’s external vulnerabilities, particularly the country’s annual external debt servicing burden of around $25 billion.
The government continues to rely on IMF support, while actively engaging in debt rescheduling talks with China, the UAE, and Saudi Arabia.
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Adding to investor anxiety is Pakistan’s limited access to international capital markets, where it has been unable to issue Eurobonds or secure commercial loans amid persistently low GDP growth and ongoing political and economic uncertainty.
While the high returns on T-bills were intended to attract inflows, they have so far failed to overcome the underlying confidence gap plaguing the economy.
