The movements in Special Convertible Rupee Accounts (SCRAs), an instrument used for portfolio investment in Pakistan, remained largely range-bound, oscillating between $350 million and $360 million during the period from April 19 ($359 million) to Mat 22 ($359 million).
On May 18, these were $352 million. On May 25, the balances in SCRAs crossed the $360 million mark for the first time during the last about 5 weeks to reach $365 million but the level retreated to $362 million the following day. These were still $358 million and $354 million on May 30 and 31, respectively, but suddenly dipped to $324 million, indicating a massive withdrawal of about $30 million in the first two days of June. The entire withdrawal occurred on June 1 as there was a net inflow of $0 14 million on June 2.
Further details showed that as on June 2, the single largest withdrawal of about $33 million took place in the case of investors from USA, reducing their cumulative net flow during the year up to June 2 to $253.7 million.
Compared to February 28, when the balances in USA accounts touched the record high at $364 million, the cumulative withdrawals so far have amounted to $111 million. A minor withdrawal also took place in the case of Singapore whose cumulative net flow stood at $2.3 million as on June 2. The contraction impact of these withdrawals was partially offset by inflows of $1 million from UK, $1.3 million from Switzerland and $0.5 million from Hong Kong between May 31 and June 2, raising their cumulative net flows during the year so far to $33.8 million, (-) $9 million and $28.2 million, respectively.
Relatively smaller inflows were also observed in the case of Liberia and UAE. Among other countries BV Island, Bahamas, Bahrain, France, Germany, Guernsey, Japan, Kuwait, Luxembourg, Netherlands, Oman, Philippines, Qatar, Sri Lanka and Saudi Arabia neither withdrew any amount nor brought in any fresh funds during June so far.
It may be of interest to note that by May-end, not only KSE 100 Index failed to maintain the 11,000 baffler but also failed to maintain the 10,000 points barrier, with the Index closing at 9,801 level on May 31, down 318 points from the previous day closing of 10,119. It was clearly a disappointing signal for SCRA holders. (Report by [email protected])
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