Funds Return to Pakistan Local Bills as Economy Stabilizes

  • Inflation is easing, dollar reserves at highest in two years
  • The nation’s treasury bills yield is among the highest in Asia
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Pakistan’s short-term local government bonds are set for their first annual inflow from foreign investors in five years, buoyed by high yields and a stable rupee in an improving macroeconomic environment.

Net overseas inflows into Treasury bills rose to $875 million in 2024, according to State Bank of Pakistan’s latest data from Monday. That’s a turnaround from four straight years of outflows totaling $1.4 billion.