Gulf investors are showing strong interest in Pakistan Investment Bonds, even as uncertainty hangs over the wider region. In the first 25 days of September alone, they put $129.8 million into the bonds.
The figures point to Pakistan emerging as a higher-yielding alternative market for investors in the Gulf.
The United Arab Emirates accounted for the bulk of the inflows, investing $110 million in Pakistan Investment Bonds during the period. Bahrain added $10 million.
Returns on fixed-rate Pakistan Investment Bonds stood at roughly 12.4 to 12.5 percent in September. That level of yield has helped make the bonds attractive to overseas buyers.
Across the first quarter of the current fiscal year, total foreign investment in Pakistan Investment Bonds came to $203.7 million. The September inflow from Gulf investors makes up a large part of that figure.
The growing appetite from Gulf investors is opening up new sources of foreign capital for Pakistan. It also improves the prospects for greater financial stability in the country.
