Foreign investors pulled out $20 million from Pakistan’s domestic bond market in a single day on March 13, highlighting growing unease over global uncertainties. In total, $184.3 million left the market during the first 13 days of March, as rising tensions in the Gulf region prompted investors to rethink their positions.
Meanwhile, inflows remained limited at just $19.3 million, creating a clear imbalance between money coming in and going out.
According to the State Bank of Pakistan, the United Kingdom led the withdrawals with $69.5 million, followed by Bahrain, the United States, Singapore, the UAE, and Australia. Despite these outflows, Pakistan’s currency and oil supply have remained relatively stable, providing some reassurance amid investor jitters.
Financial analysts note that while Pakistan is not directly involved in the Gulf conflict, global risk aversion has a way of affecting emerging markets like Pakistan’s. A prolonged crisis could increase pressure on the country’s financial system, though remittances from overseas Pakistanis, particularly in the Gulf, continue to flow steadily, offering some cushion against immediate shocks.
Historically, Pakistan’s bond market has been sensitive to geopolitical developments, and past tensions in the Middle East have often caused short-term volatility.
Experts say careful monitoring and clear communication from authorities can help calm investors and prevent panic-driven exits.
