External inflows increase by $125 million in four days of October

In a significant development, the cash-strapped country attracted $125 million via external inflows during four days of October 2024, according to the State Bank of Pakistan.

A press release issued by the central bank stated that the latest increase brought the total inflow to $570 million, which is above the beginning of the fiscal year 2024, reflecting a sign of confidence in the economy.

The inflow surged by $125 million in the four days of October, which was not much different from June 2024, when the inflow rose to $194 million, leading the full-year investment to $581 million.

Financial experts believe the economy has recovered from the two sides, including investors and authorities.

“The government succeeded in getting a $7 billion loan from the IMF, which assisted in stabilising the exchange rate and beefed up foreign exchange reserves,” said S.S. Iqbal, a financial expert.

However, experts are optimistic about the Shanghai Cooperation Organisation (SCO) summit, which they believe, would help Pakistan to get some relief on debt servicing by attracting foreign investment.

Pakistan and China’s collaboration on the China-Pakistan Economic Corridor (CPEC) for removing hurdles faced by investors, would bring more money, but it would take time, financial experts said.

They added that investors never put their money in a place with uncertainty.

“Islamabad has been sealed; armed forces have taken control of the capital. This is enough for investors to realise the situation is not normal for any new venture,” said a researcher.