Pakistan experienced a net outflow of $30 million from domestic bonds in the first 10 days of FY27, primarily due to Bahrain's withdrawal of $21 million from T-bills and $9 million from PIBs amidst the Gulf conflict. The State Bank reported no new foreign investment from Gulf states, while the US-Israeli war on Iran has also pushed up oil prices. Although Saudi Arabia replaced a $3.5 billion UAE withdrawal to stabilize the current account, prolonged conflict could threaten remittances, a key economic backbone. This economic uncertainty and pressure on the current account could lead to increased volatility in USD/PKR and potentially boost local gold demand as a safe haven.
بحوالہ / Source: www.dawn.com