UK, UAE & US withdraw $1 billion from Pakistan’s treasury bills
The global economic uncertainty has taken a toll on Pakistan’s treasury bills, with major foreign investors, including the UK, UAE, and US, withdrawing nearly $1 billion from the country’s treasury bills during the current financial year. This significant outflow of foreign investment has raised concerns about the country’s economy, which is already reeling under the impact of corruption, political instability, and economic mismanagement.
According to the State Bank of Pakistan, between July 1 and March 14 this fiscal year, inflows into treasury bills (T-bills) totalled $1.163 billion while outflows stood at $1.121 billion, leaving a net balance of $42 million. This means that foreign investors have withdrawn nearly $1 billion from Pakistan’s treasury bills, a significant outflow that has raised concerns about the country’s ability to attract foreign investment.
The news has sent shockwaves through the financial markets, with many analysts attributing the outflow to the global economic uncertainty sparked by the US-China trade war. The tariffs imposed by the US on Chinese goods have led to a decline in global trade, which has had a ripple effect on economies around the world, including Pakistan.
The UK, UAE, and US are among the top foreign investors in Pakistan’s treasury bills. The UK has been a major investor in Pakistan’s debt market, with investments worth billions of dollars. The UAE has also been a significant investor, with many of its sovereign wealth funds and private investors having invested in Pakistan’s treasury bills. The US, on the other hand, has been a smaller but significant investor, with many of its private investors and institutional investors having invested in Pakistan’s debt market.
The outflow of foreign investment from Pakistan’s treasury bills is a major concern for the country’s economy, which is already facing many challenges. Pakistan’s economy has been struggling to recover from the impact of corruption, political instability, and economic mismanagement. The country’s debt-to-GDP ratio has been rising steadily, and the country is facing a significant fiscal deficit.
The outflow of foreign investment has also raised concerns about the country’s ability to meet its debt repayment obligations. Pakistan’s debt repayment obligations are significant, and the country is facing a major challenge in meeting its debt repayment obligations. The outflow of foreign investment has also raised concerns about the country’s ability to attract foreign investment in the future.
The news has also sent shockwaves through the financial markets, with many analysts attributing the outflow to the global economic uncertainty sparked by the US-China trade war. The tariffs imposed by the US on Chinese goods have led to a decline in global trade, which has had a ripple effect on economies around the world, including Pakistan.
The outflow of foreign investment from Pakistan’s treasury bills is a major challenge for the country’s economy, and it will require the government to take decisive action to stabilize the economy and attract foreign investment. The government will need to implement a series of reforms to improve the country’s business environment, increase foreign investment, and stabilize the economy.
In conclusion, the outflow of foreign investment from Pakistan’s treasury bills is a major concern for the country’s economy. The UK, UAE, and US have withdrawn nearly $1 billion from Pakistan’s treasury bills, a significant outflow that has raised concerns about the country’s ability to attract foreign investment. The government will need to take decisive action to stabilize the economy and attract foreign investment, and it will require a series of reforms to improve the country’s business environment and increase foreign investment.
