The Pakistani Debt market saw a significant outflow of investment in October 2020 as foreign investors liquidated $ 268.9 million in short-term government securities (Treasury bills) in exchange for an inflow of $ 12.53 million, resulting in a net liquidation in the amount of 256.34 million dollars as per statistics of State Bank of Pakistan (SBP).
Unlike treasury bills, PIBs did not register an outflow of funds during the month, and the inflow reached $ 12.69 million. This indicates that the cumulative inflow of foreign funds invested in Treasury bills and PIBs was $ 25.2 million in October 2020, with a reported outflow of $ 268.9 million, and therefore a net outflow of government securities in during the month amounted to $ 243.66 million. Whereas last month, the net inflow of government-backed securities totaled $ 3.12 million.
In terms of equity, the Pakistani Stock Exchange also saw an outflow of $ 88.37 million, compared with an inflow of $ 41.5 million during the month. This boosted net outflow of all investments including Treasury bills, Treasury bonds and stocks to $ 290.54 million for the month under review.
During the month, the outflow of government securities (Treasury bills) was mainly driven by foreign investors from the United Kingdom and Bahrain, with the former reaching $ 260.68 million and the outflow from the latter $ 5 million.
In general, for 4 months of the fiscal year 2021, the inflow of Short Term Investment into Treasury bills amounted to 126.75 million dollars. However, capital outflows for the reporting period reached $ 435.7 million, which resulted in an increase in the net liquidation of investments in short-term instruments to $ 308.95 million.
As for PIBs, the total inflow of foreign capital from July to October 2020 amounted to $ 22.86 million, while there was no outflow.
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