• Sunday, December 15, 2019

Foreign investors rush into Pakistan, with inflows surging 200% in first half of the year

Discussion in 'Pakistan Economy' started by Areesh, Dec 4, 2019.

  1. Areesh

    Areesh ELITE MEMBER

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    Pakistan has seen unprecedented inflows of foreign money this year. Global investors bought 1-year bonds worth $642 million in November alone.
    That is expected to reach a record $3 billion by the end of the fiscal year as investors are lured by high interest rates and promises of economic reform.

    According to Abdul Hafeez Shaikh, financial adviser to Prime Minister Imran Khan, foreign direct investment surged 200 percent in the first half of 2019. Stocks have also risen, with the main Karachi stock index up by 13 percent over the past month, making it the best-performing stock exchange of the 94 tracked by Bloomberg.

    “A double-digit yield on a cheap currency is a good value trade in itself,” Charles Robertson from Renaissance Capital told Deutsche Welle. “I would recommend investors keep buying Pakistan while it offers double-digit interest rates,” he said.

    Robertson added that even central bank rate cuts of a few percent would still make Pakistan interesting. “The current policy choices of Pakistan offer the country the best chance of getting onto a sustainable growth path. Borrowing costs are lower thanks to foreign investors buying government debt.”

    Central bank data showed that of 1-year papers bought in November, 55 percent were from the UK and 44 percent from the US.

    Habib Bank CEO Muhammad Aurangzeb said that Pakistan plans to issue $1 billion worth of ‘Panda bonds’ in the first quarter of 2020 in the Chinese market for the first time in yuan. A Panda bond is a Chinese renminbi-denominated bond from a non-Chinese issuer, sold in China.

    This week, Moody’s upgraded Pakistan’s credit outlook from negative to stable, saying the financial situation is on a path of improvement. It also expressed hope that the help from the International Monetary Fund (IMF) will mitigate the risks to its economy. Last month, Islamabad secured another tranche from the IMF as part of a $450-million loan package.

    The experts at Moody’s said the country’s economic recovery reduces “external vulnerability risks,” but warned that “foreign exchange reserve buffers remain low and will take time to rebuild.”

    https://www.rt.com/business/474966-investors-pile-into-pakistan/amp/?__twitter_impression=true
     
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  2. PakSword

    PakSword PDF THINK TANK: ANALYST

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    Shukar hai, achi khabrain tou aani shuru hueen.. aankhain taras gaee theen
     
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  3. Maxpane

    Maxpane SENIOR MEMBER

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    thats a good news hope it will bring some ease in country
     
  4. W.11

    W.11 BANNED

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    :lol::lol:
     
  5. kris

    kris SENIOR MEMBER

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    Pls clarify,

    Is this a pakistani bond or investment in Pakistan.

    If it's a bond nothing to be happy about
     
  6. Protest_again

    Protest_again FULL MEMBER

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    This is pure economic gimmickry. What Hafeez Shaikh said was net FDI as in inflow minus outflow. Inflow is still down. Outflow also reduced substantially (but there is nothing left to outflow).

    World over when we talk about FDI, we only talk about inflow FDI not net. Because most countries would not lose FDI after they received it.

    Hafeez Shaikh making up stories like 17 rupees per kg tomatoes.
     
  7. Syed1.

    Syed1. SENIOR MEMBER

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    Apply burnol please :partay:


    while you are at it first education yourself of what is direct investment and portfolio investment. :enjoy:
     
  8. Sine Nomine

    Sine Nomine ELITE MEMBER

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  9. Protest_again

    Protest_again FULL MEMBER

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    Seriously, please don't show your ignorance.

    I understand you are desperate for some good news but please don't fall for propaganda news.
     
  10. Zibago

    Zibago ELITE MEMBER

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    2020 will be a turnaround year
     
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  11. Del

    Del FULL MEMBER

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    Stop worrying about Pakistan's economy for once and heed towards your own slowing down economy.

    https://insight.kellogg.northwestern.edu/article/indias-economy-is-slowing-down-what-happens-next
     
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  12. Syed1.

    Syed1. SENIOR MEMBER

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    Munnay when you grow up a little you will realize that nobody invests in a country out of the goodness of their heart, foreign investment is always measured in terms of money coming in minus profits being repatriated by the investor. Also there is a difference in investment in manufacturing and services versus investment in stocks and bonds.


    So please don't step out of the boundaries of your auqaat and educate yourself before talking.


    If I were Indian I would worry more about the rapidly plummeting economy.
     
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  13. GHALIB

    GHALIB SENIOR MEMBER

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    good development
     
  14. WarKa DaNG

    WarKa DaNG FULL MEMBER

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    Still skeptical
     
  15. Starlord

    Starlord ELITE MEMBER

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    Bhai ignore ker .. yeh Chutiy@@ gaye hai Indians ..
     
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