Foreign investors placed approximately $275 million in Pakistani government securities between July 1 and September 11, 2026, according to State Bank of Pakistan figures.
The investment included $151.4 million in Treasury bills and $123.7 million in Pakistan Investment Bonds, taking the combined amount to $275.1 million.
Treasury bills are short-term government borrowing instruments. Pakistan Investment Bonds, known as PIBs, generally have longer repayment periods. The sizeable investment in PIBs is notable because overseas investors have often preferred shorter-term Pakistani securities.
Investors from the United Arab Emirates accounted for about $100 million of the inflows, including $90 million in PIBs. UK investors purchased $60.7 million in Treasury bills, while investors from Luxembourg, the United States and Bahrain also participated.
Attractive returns are one reason overseas investors buy Pakistani government debt. Market participants cited yields of around 12%, although actual returns also depend on exchange-rate movements and other risks.
These purchases are different from foreign direct investment, which generally involves businesses, factories or other productive assets. Money invested in government securities can leave when bonds mature or investors decide to withdraw.
Foreign purchases can support Pakistan’s access to financing while the funds remain invested. However, the reported figures represent purchases during the period, not necessarily a permanent increase in foreign investment.
The latest data show growing foreign interest in Pakistan’s longer-term government bonds, particularly among UAE-based investors. Whether that continues will depend on borrowing costs, the rupee’s value and confidence in Pakistan’s economy.