Expert expects foreign investment in Pakistan to hit $6bn
As signs of economic stabilization emerge, financial experts anticipate that by the end of this fiscal year foreign investment in Pakistan will hit $6 billion.
“We expected foreign investment of up to $3 billion to $4 billion at the start of the current fiscal year, but looking at the current scenario, these estimates seem quite small, we could now reach $5bn to $6bn,” said Mohammad Sohail, CEO of Topline Securities.
The financial expert said that there is no better option for international investors anywhere else as interest rates are falling globally, Pakistan is the only exception where one can obtain double digit returns.
“The international investors, are not only confident on the stabilization of Pakistan economy, they are also optimistic that the IMF quarterly monitoring would keep the economy on track, and lastly the investor believes that the PKR would not depreciate further,” said Sohail.
During this fiscal year (FY20), foreign investment in government debt instruments, including Market Treasury Bills (T-bills) and Pakistan Investment Bond (PIBs) upped to $2.26 billion.
According to the State Bank of Pakistan (SBP), on January 16, 2019 in the Special Convertible Rupee Account (SCRA), foreign investment in T-bills has reported the largest inflow of $536 million in a single day.
With these inflows arriving total net foreign investment in T-bills and PIBs totaled to more than $2.26 billion.