With the high local interest rates and stable Pakistani rupee, foreign investors are investing in local T-Bills through Special Convertible Rupee Accounts (SCRA). According to Topline Securities, after a gap of four years, a net inflow of $82 million was seen from March 1-22, 2024, according to official data released by the State Bank of Pakistan. Since January 2024, these inflows have reached $126 million. The brokerage house said in its note that carry trades are common in countries with high-interest rates. But in the case of Pakistan, political uncertainties and currency risk were not allowing investors to do this arbitrage. It further highlighted that in FY20 net T-Bills inflows of $612 million came to Pakistan. The brokerage house said that once Pakistan gets the new long-term IMF deal, chances are high that more such funds will come to Pakistan to get high-yielding government papers thereby providing short-term support to Pakistan FX reserves and the rupee. Source: ProPakistani