UK, UAE & US Withdraw $1 Billion from Pakistan’s Treasury Bills
Pakistan has been facing significant economic challenges in recent times, and the latest development has added to its woes. The UK, UAE, and US have withdrawn nearly $1 billion from Pakistan’s treasury bills, marking a major outflow of foreign investment in the country.
According to the State Bank of Pakistan, between July 1 and March 14, inflows into T-bills totalled $1.163 billion, while outflows stood at $1.121 billion, leaving a net balance of $42 million. This is a stark contrast to the usual inflows of foreign investment that Pakistan receives from these countries.
The withdrawal of foreign investment is a cause for concern for Pakistan’s economy, which is already grappling with a number of challenges. The country is facing a severe balance of payments crisis, which has led to a decline in its foreign exchange reserves. The current account deficit has also been widening, making it difficult for the government to meet its foreign exchange obligations.
The withdrawal of foreign investment is not just limited to these three countries. According to a report by the State Bank of Pakistan, foreign investment in Pakistan’s debt securities declined by 44% in the first half of the current fiscal year compared to the same period last year. This decline is attributed to a number of factors, including the decline in global oil prices, which has led to a decline in remittances from Pakistanis working abroad.
The withdrawal of foreign investment is also expected to have a negative impact on Pakistan’s stock market. The Karachi Stock Exchange (KSE) has been facing a number of challenges in recent times, including a decline in foreign investment. The KSE has lost nearly 15% of its value in the current fiscal year, making it one of the worst-performing stock exchanges in the region.
The decline in foreign investment is also expected to have a negative impact on Pakistan’s economy in the long term. Foreign investment is an important source of capital for Pakistan’s economy, and its decline is expected to lead to a decline in economic growth. The decline in economic growth is expected to lead to a decline in employment opportunities, which could have a number of negative consequences for the economy.
In conclusion, the withdrawal of $1 billion from Pakistan’s treasury bills by the UK, UAE, and US is a major concern for the country’s economy. The decline in foreign investment is expected to have a number of negative consequences for the economy, including a decline in economic growth and a decline in employment opportunities. The government needs to take swift action to address these challenges and restore investor confidence in the economy.
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