Pakistan’s T-Bill Inflows Surge on High Interest Rates and IMF Deal
Pakistan’s economy is showing signs of recovery, with foreign investment in short-term government debt securities reaching a four-year high in the fiscal year 2024.
Why the Surge?
- High interest rates are attracting foreign investors seeking higher returns.
- A stable currency provides confidence to investors.
- Anticipation of a new bailout from the IMF is further boosting investor sentiment.
What’s Next?
The recent $7 billion loan deal with the IMF is expected to attract more foreign funds to Pakistan, further supporting the local currency and foreign exchange reserves. Analysts believe that inflation will gradually recede and interest rates will decline in the coming months.
This positive development is a testament to Pakistan’s commitment to economic reform and its ability to attract foreign investment. However, it’s crucial to continue these reforms to ensure sustainable economic growth.
