Foreign Investment Trends in Pakistan Witness a Shift with Net Outflow in the Final Week of 2023

In a notable development, foreign investors transitioned from net buyers to net sellers during the last week of 2023, reflecting a significant shift in investment dynamics. According to the State Bank of Pakistan's weekly report on Specially Convertible Rupee Accounts (SCRA), the week ending December 29, 2023, saw a net sale of securities amounting to Rs439.46 million. This stands in contrast to the previous week, which recorded a substantial net purchase of securities totaling Rs3.19 billion.

The report outlines that the gross sale of securities for the week was Rs4.76 billion, marking a substantial decrease of 53.98% from the figures reported in the preceding week. Similarly, the total purchase of securities amounted to Rs4.32 billion, reflecting a significant decline of 68.08% compared to the prior week. These shifts resulted in the net sale of securities reaching Rs439.46 million by the end of the week.

Noteworthy changes were also observed in the overall metrics, with the overall purchase of securities decreasing by Rs9.21 billion over the week, accompanied by a decrease of Rs5.58 billion in the net sale of securities.

Additionally, the SCRA report highlighted the financial activity related to remittance in these accounts. An inflow of Rs1.25 billion was reported, contrasting with an outflow of Rs2.91 billion during the same period.

The closing balance of SCRA concluded the week at Rs25.26 billion, marking a decline of Rs1.17 billion compared to the previous week. This nuanced shift in investment patterns underscores the dynamic nature of foreign investments in Pakistan's financial landscape.