Naya Pakistan certificates investment halves to $763mn in six months

• Investors have withdrawn $660 million from Naya Pakistan Certificates
• The investment has halved down to $763 million by September 2022
• More than $730 million have been withdrawn between April to September

ISLAMABAD: Foreign investors have started divesting from the Naya Pakistan Certificates in the past six months ever since the ouster of PTI Chairman Imran Khan’s government, Bol News reported.

The country is embroiled in an economic and political crisis ever since the new government took control. According to reports, investors have withdrawn $660 million from Naya Pakistan Certificates in the last six months.

Between April to September, the investment decreased by 46 percent. More than $730 million have been withdrawn from Naya Pakistan Certificate in this time period.

The last data released by the State Bank of Pakistan shows that foreign investment in Naya Pakistan Certificates was increasing till March this year but the uncertainty after the change of government had a negative impact.

As of September 30, investment in Naya Pakistan Certificates decreased from $1.423 billion to $763 million. On September 30, 2021, Naya Pakistan Certificates had $1.178 billion which increased to $1.338 billion by December 31 last year.

By March 2021 of the same year, this investment increased to 1.423 billion dollars but has halved down to $763 million by September 2022.

Sources said the domestic uncertainty has affected investor confidence in Naya Pakistan Certificates while declining economic activities in has led to adverse effects

The PTI government launched Roshan Digital Account (RDA) in September 2020 to attract foreign investments. However, the withdrawal and maturity of NPCs reduced foreign investment to the lowest level of $763m.

Pakistan is also expected to pay $1 billion in bonds by December 5 this year. This is heightened concerns that the country is on the verge of default despite assurances by the finance minister.

Meanwhile, the foreign exchange reserves of the State Bank of Pakistan have decreased by 27 percent in the last seven months.

The reserves held by the central bank decreased by $2.8 billion to $7.9 billion, while foreign reserves held by commercial banks also decreased by six percent to $340 million. The total foreign exchange reserves have decreased by 19 percent and currently stand at $13.7 billion.

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