KARACHI: The ongoing war in the Gulf has further reduced foreign investment in Pakistan, with Bahrain withdrawing its investments from domestic bonds within the first 10 days of the current fiscal year.
The State Bank reported on Thursday that there was no inflow of foreign investment into the domestic market during the first 10 days of 2026-27, particularly from the Gulf states.
The renewed US-Israeli war on Iran has not only pushed up oil prices but also left countries like Pakistan facing increasing trouble, as neither foreign investment is coming from the region nor is the market stable for exports.
Only a $4 million inflow was noted from Luxembourg in the treasury bills, which pay the highest returns, up to 11.5 per cent, in developing countries.
Bahrain withdraws $30m from bonds in first 10 days of FY27
