Flush With Hot Funds in Bills, Pakistan Now Wants Sticky Money
- Central bank plans to boost liquidity, improve price discovery
- Overseas funds have piled record money into T-bills since July
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Having seen global bond investors gorge on its Treasury bills, Pakistan now wants to make its longer-tenor securities palatable to them.
The nation’s central bank is looking at ways to boost liquidity, transparency and improve price discovery in its debt market to make foreign funds stay invested for longer periods. Attracting such sticky money would amplify efforts to turn around an economy saddled with high debt, weak growth and low foreign currency reserves.