Foreign investment in Pakistan’s treasury bills rose sharply in October, with inflows hitting $118.6 million, the highest monthly level of FY26, according to data released by the State Bank of Pakistan (SBP).
The SBP figures show that total inflows into T-bills during July–October FY26 reached $333 million, while outflows amounted to $213 million in the same period.
The SBP data indicates that Arab states were the primary contributors to October’s inflows. The UAE alone accounted for $112.5 million, remaining Pakistan’s largest trade partner and a key source of portfolio investment.
Other inflows in October included $63 million from Bahrain, $9.6 million from the UK, and $47.6 million from the US.
Market analysts said the improved inflows reflect a shift in sentiment, supported by stabilising economic indicators and a changing regional environment. They noted that Gulf countries are showing renewed interest in Pakistan, while the United States is also exploring investment in mining and other sectors.
Recent developments, including the defence pact with Saudi Arabia, the Gaza ceasefire, and a Saudi delegation’s visit to assess investment opportunities, have eased geopolitical uncertainty and encouraged investors.
Analysts noted that several Pakistani firms have shifted operations to Dubai due to high domestic electricity costs and weak internet infrastructure.
Bankers said that despite low net investment so far, sustained inflows could help improve liquidity in the coming months. They added that Pakistan’s T-bill yields — offered on one-month, three-month, six-month and 12-month tenors — remain attractive at around 11 per cent, significantly higher than those of many emerging and developed markets.
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