Foreign investors recorded net inflows of $15 million into Pakistan's short-term government treasury bills during July 2026, up from $12.9 million in the previous month, according to the latest data released by the State Bank of Pakistan (SBP).

The data showed overseas investors purchased $74.16 million worth of treasury bills by July 24, while divesting $59.15 million, resulting in the positive net inflow. The latest figures indicate continued foreign interest in Pakistan's local debt market despite evolving global economic conditions.

Special Convertible Rupee Account (SCRA) data reflects typical "hot money" flows driven largely by attractive yield differentials and investor sentiment rather than long-term structural investment. He noted that while inflows strengthened during periods of higher returns, March 2026 witnessed significant outflows due to profit-taking and external market concerns.

The development comes after the State Bank of Pakistan kept its benchmark policy rate unchanged at 11.5%, citing inflationary pressures and external sector risks. The central bank expects inflation to gradually moderate toward its medium-term target, although global energy prices, fiscal risks and geopolitical developments remain key challenges.

The SBP also noted that Pakistan's current account deficit remained contained during FY2025-26, supported by record workers' remittances and a financial account surplus. However, foreign exchange reserves stood at $17.03 billion as of July 24, with the central bank expecting the current account deficit to widen moderately as economic activity gains momentum during FY2026-27.