Pakistan, May 27 -- Foreign investors have withdrawn $42.2 million from Pakistan's treasury bills (T-bills) as of May 2, 2025, reflecting declining interest in local debt due to falling interest rates. According to the State Bank of Pakistan (SBP), this marks another month of net outflows from the T-bill market.

The SBP recently reduced its key interest rate by 100 basis points to 11%, the lowest level in three years. Since June 2024, the central bank has cut rates by a total of 11 percentage points, reducing the appeal of fixed income assets for international investors. Lower returns have made Pakistan's T-bills less competitive globally.

In April and March, T-bills saw net outflows of $187.9 million and $197.4 million, respectively, s...