Foreign investment in govt securities exceeds $711 million

KARACHI: Foreign investment in government securities has exceeded $711 million since the beginning of the current fiscal year as the country saw an inflow of an unprecedented level on high interest rates and exchange rate stability.

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However, analysts say this reserve build-up process is choking growth.

Foreign investment in treasury bills reached a new high of $267 million between November 1-12. The US, UK and the UAE have increased their portfolios of government T-bills and Pakistan Investment Bonds. Investment from the UK clocked in at $169.5 million, followed by the US ($92.6 million) and the UAE ($5 million). Since the start of the current fiscal year, foreign investment in government securities stood at $711 million.

State Bank of Pakistan (SBP) Governor Reza Baqir said foreign investors were investing in T-bills because of attractive rates and about $500-600 million worth of foreign investment has arrived in short-term government bonds.

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