SBP statement on investment by international investors in debt markets.

KARACHI -- State Bank of Pakistan (SBP) here Monday in a statement said there are several misconceptions about the implications of international investors' investments in the debt markets of Pakistan. State Bank of Pakistan would like to clarify as under: 1. International investors have been investing in Pakistan's equity markets for a long time. Such investments are considered portfolio investments, just like investments in debt instruments, and use the same framework of Special Convertible Rupee Account (SCRA). Such investors have been able to move capital in and out of our financial markets without problems for the Pakistan economy.

2. Recently, international investors have started investing in debt instruments issued by the government of Pakistan. This is largely a manifestation of their growing confidence in the positive outlook for the economy. As endorsed by international financial institutions, including the IMF, the ADB and the World Bank, and...