With regards to the double digit interest, the Pakistani bonds market is now proving out to be of great interest to investors all over the globe, who have piled up around $624.5 million right into the local-currency bonds in the last month of November alone.
Bloomberg has taken notice of such astonishing numbers by stating that this is actually more than what global investors had invested in debt over the course of the past four years to date.
The report has put down two factors that have gone on to contribute to this huge development : first and foremost, the high interest in the Pakistani bonds have led to the central bank of the country in doubling its policy rate to that of 13.25 percent – which happens to be the highest in Asia – in an attempt to stabilize the economy.
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Secondly, the fact that the government has convinced the IMF to support the economy has led to the improvement within public finance – this too hence lending a hand in helping the Pakistani bonds being made an attractive option for the international investors.
Bilal Khan, who happens to be a senior economist at Standard Chartered Plc in Dubai has commented on the proceedingsby stating that Pakistan ‘stands out’ in a low-yield global environment. He added to his comments by saying : “Following the recent rate hikes and currency adjustment – and more broadly, the reform momentum under the IMF.”
Also, reports have gone on to suggest that foreign inflows in the month of November have all gone right into Treasury bills, which happen to have a maximum holding period of one year – with 55 prevent of them coming from the UK and the remaining amount from the US.