Gulf war erodes 90pc investment in T-bills

KARACHI: The Gulf War has begun to affect the Pakistani economy as hopes for an early recovery diminish with the conflict’s increasing intensity each day. The latest data from the State Bank showed that 90 per cent of foreign investment in domestic bonds had been withdrawn. Local investments in treasury bills are increasing as returns have risen to 11.5 per cent compared to the SBP’s policy rate of 10.5pc. This makes them very attractive to foreign investors, but a war ongoing for more than 35 d...