KARACHI: Despite frequent sharp decreases in the cut-off yields across all tenors, foreign investors poured a record $55 million into short-term treasury bills during the first week of September. The inflows were disappointing in August, but the scenario changed at the outset of the current month. “Some of the good reasons are the macroeconomic stability which compels foreign investors to look towards Pakistan for better returns,” said Tresmark Chief Executive Officer Faisal Mamsa. The State Bank of Pakistan data showed that the foreigners invested $55.332m in the first week of this month, with major inflows of $28.624m from Bahrain and $26.707m from the United Kingdom. The three-month treasury bills offer a return of 17.47pc, which is highly attractive for foreign investors, mainly because the US Federal Reserve has recently cut the interest rate, and the returns in the developed economies are much lower than what Pakistani bonds offer. “The exchange rate is stable, inflation may fall further, the interest rate is declining, and the current account deficit is just $171m in the first two months of FY25. This economic stability is attracting foreign investors,” said Mr Mamsa. Financial experts believe that approval of a new IMF loan would further stabilise the economy and would be an additional attraction for foreign investors. The outflow from T-bills was just $3.317m in the first week of this month. Inflows reached $386.7m in the current fiscal year, convincing experts that more are expected in the coming weeks and months. “If the current account remains low or positive and debt servicing remains under control, foreigners would like to invest more in Pakistan,” said a senior banker. “The current return on T-bills in Pakistan is not the highest in the developing economies since the rates are higher in Turkiye, Egypt, Sri Lanka and other countries, but Pakistan is more stable economically than these countries,” said the banker, adding that the political uncertainty needs to be addressed for a boost in the foreign investments.