Foreign investors put $188 million into Pakistan’s domestic government securities during the first nine days of October 2026, according to State Bank of Pakistan figures cited in reporting published on Sunday. The inflows were concentrated in Treasury bills and longer-term Pakistan Investment Bonds (PIBs), with investors based in the Gulf playing a prominent role.
Of the gross inflows, $110 million went into PIBs and $78 million into Treasury bills. The United Arab Emirates accounted for $130 million, including $80 million in PIBs and $50 million in Treasury bills. Bahrain accounted for another $40 million, comprising $30 million in PIBs and $10 million in Treasury bills. These two countries together represented about 90% of the reported gross inflows for the nine-day period.
Reported outflows of $38.16 million imply net inflows of approximately $149.84 million over the period. That distinction matters: the $188 million headline figure measures money entering the securities market before withdrawals, rather than a net addition of the same amount.
For the fiscal year to date, reported foreign investment in government securities stood at $656 million, including $404 million in PIBs and $252 million in Treasury bills. The preference for PIBs in the latest period is notable because those instruments generally have longer maturities than Treasury bills. It does not, by itself, establish that the investment will remain in Pakistan over the long term.
Foreign participation can provide an additional channel for dollar inflows and broaden demand for government debt. However, portfolio investment can also reverse as yields, exchange-rate expectations and international conditions change. The inflows should therefore be considered alongside debt-servicing costs, currency stability and Pakistan’s broader external financing position.
The reported figures describe investment flows into government securities, not foreign direct investment in factories or businesses. They also do not establish the ultimate nationality of every investor whose funds were routed through Gulf financial centres.
Sources and attribution
- https://www.dawn.com/news/2037907/gulf-inflows-in-domestic-bonds