Hong Kong has strengthened its Special Convertible Rupee Account (SCRA) in Pakistan by over $1 million in November so far. By November 1, 2005, Hong Kong had $23.5 million strong SCRA which was the third largest after USA and UK who had $120 million and $35.9 million, respectively, in their SCRAs in Pakistan on that date.
Foreign countries, or non-resident investors, to be specific, maintain their SCRAs with Authorised Dealers in Pakistan for portfolio investment viz for investment in stock exchange and government securities.
By the same date, USA and UK withdrew (disinvested) from SCRAs amounts equivalent to $0.3 million and $0.1 million respectively. However, there was a net inflow in SCRAs of some $0.7 million mainly because of inflow originating from Hong Kong suggesting that country''s interest in Pakistan''s corporate and government paper.
It may be of interest to recall that authorised dealers are required to submit information with regard to inflow into and outflow from SCRAs on daily basis as from March 12, 2005 which previously was to be submitted on weekly basis. Besides USA, UK and HK, other major account holders are Switzerland ($12.8 million), Bahrain ($10 million), British Virgin Islands ($4.4 million), and Kuwait ($2.6 million).
Between July and November 1, 2005, Saudi Arabia and Germany were the largest disinvestors, taking out $4.1 million and $2.2 million, respectively. Cumulative net inflow in SCRAs during the year so far was $203.8 million.
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