Bonds begin to attract dollars

The continued stability in the exchange rate has made treasury bills (T-bills) attractive for foreign investors, as increased inflows noted during the first 15 days of the current month, according to sources in the financial sector. State Bank of Pakistan’s latest data shows that market treasury bills attracted $13.863 million during the first 15 days of March FY24. Financial market experts find this trend encouraging, despite poor economic performance and persistent political uncertainties. However, experts said that the primary reason is the stable exchange rate, which has remained steady for about three months, assuring investors of “less risk”. Pakistan’s domestic bonds offer returns of 21.66 per cent for three-month T-bills, 20.39pc for six months, and 20.89pc for 12-month papers. The returns are paid in Pakistan rupees, but investors are allowed withdraw their profits and invest in dollars.