Investors based in Gulf countries purchased $129.8 million worth of longer-term Pakistani government bonds during the first 25 days of September, according to State Bank of Pakistan figures reported in October.
Most of the investment came from the United Arab Emirates, which accounted for approximately $110 million in Pakistan Investment Bonds. Bahrain contributed another $10 million.
Pakistan Investment Bonds allow investors to lend money to the government for longer periods in exchange for returns. They differ from Treasury bills, which generally mature sooner.
The interest from Gulf investors is significant because longer-term borrowing can help the government spread out its repayment obligations rather than repeatedly seeking short-term financing.
The figures also show investment in shorter-term Treasury bills. UAE-origin investors purchased around $5 million in these securities during September, while Bahrain-origin investors purchased approximately $14 million.
Looking at the wider period from July 1 to September 25, foreign purchases of Pakistan Investment Bonds reached about $203.7 million. However, investors also withdrew or received repayments totalling around $115 million during that period.
These movements matter because purchases do not necessarily represent money that will remain invested permanently. Some investors may reinvest when their existing bonds mature, while others may withdraw funds.
The figures refer to investment originating from Gulf countries, not necessarily purchases made by Gulf governments.
Foreign participation in Pakistan’s bond market can support government financing and demonstrate interest in domestic financial assets. The latest data show that investors from the UAE were particularly active in longer-term Pakistani government securities during September.