War with India fails to stop inflows in T-bills

The Indian aggression against Pakistan has not hurt, strangely enough, the inflow of foreign investment into treasury bills, while outflows from the equity market has been much higher than inflows during the same period. The State Bank’s latest update for May shows that foreign inflows in T-bills during the month (up to May 23 of FY25) reached $73.6 million. This was strange since India attacked Pakistan on May 6. It is believed that foreign investment quickly leaves a country during an international crisis. The war did not hurt inflows in t-bills, but outflows from the equity market reflected its negative impact. The State Bank data for May shows that while inflows in T-bills were $73.5m, outflows amounted to $66m.