Gulf Investors Pour $188 Million Into Pakistan Government Bonds in Just Nine Days of October, UAE Leading the Way

KARACHI: Foreign investors put $188 million into Pakistan government bonds in the first nine days of October, the latest State Bank of Pakistan figures show, opening up another channel of dollar inflows for a government that has long chased overseas money for its debt market. The interest is coming mainly from the Gulf, and mainly for the longer-term paper — Pakistan Investment Bonds drew $110 million of the total, against $78 million for treasury bills. In the past, foreign buying of Pakistani government securities was mostly short-term and modest; this time the balance has flipped.

The UAE accounts for $130 million on its own

The Emirates was by far the biggest buyer, putting $50 million into T-bills and $80 million into PIBs. Bahrain followed with $30 million in PIBs and $10 million in T-bills. Outflows over the same nine days were just $38.16 million, a fraction of the money coming in. Since the fiscal year began in July, foreign investment in government securities has reached $656 million — $404 million in PIBs and $252 million in T-bills.

Why the money is coming in

Analysts read the trend two ways. Some reckon Pakistanis living and doing business in the Gulf are moving part of their liquid savings home, into high-yielding, risk-free government paper. Others say the returns on T-bills and PIBs simply look more attractive now, against the regional uncertainty thrown up by the continuing war. The inflows land at a useful moment: Pakistan took in a record $41.5 billion in remittances in FY26, but weak export growth and a widening trade deficit are making the current account surplus harder to hold.