KARACHI – Global financial markets are bearing brunt of Middle East crisis and alarm bells are ringing in Pakistan too. In last few weeks, foreign investors pulled staggering $348 million out of the country’s bonds and stock market, showing panic and uncertainty.
From Treasury Bills to Pakistan Investment Bonds, numbers are not pleasent, amid fears of pressure on the rupee and incoming remittances. Fresh data from State Bank of Pakistan shows surge in foreign investor withdrawals from the country’s bond and stock markets this month, signaling growing global unease.
Foreign investors pulled out $177.9 million from Pakistan’s Treasury Bills (T-bills), a massive jump compared to just $31.2 million in February.
Despite investing $19.257 million, investors withdrew $197 million, highlighting a clear loss of confidence.
Stocks and Bonds Numbers
The selling didn’t stop at T-bills:
- $21 million worth of Pakistan Investment Bonds (PIBs) dumped
- $148.7 million worth of stocks sold on the Pakistan Stock Exchange
- Stock market inflows: $7.4 million
- Stock market outflows: $156.1 million
- Total inflows (bonds + stocks): $27.7 million
- Total outflows: $375.8 million
- Net foreign selling: $348 million
Financial experts point directly to rising global uncertainty fueled by the Middle East conflict. Investors are rapidly shifting funds to safer markets amid fears of prolonged instability.
JS Global experts warned that even if the conflict resolves quickly, the damage may already be underway. According to him, foreign investment in T-bills has already taken a hit. Remittances from overseas Pakistanis may slow down, Pakistani rupee could face increased pressure
Pakistan heavily relies on overseas inflows, especially from the UAE and Saudi Arabia, which were the top contributors in February. Any disruption there could deepen economic stress.
