T-Bills

In order to reduce risk, we decided to invest in safest investment which is fixed income. In this
the investments is risk free and returns are fixed and after all these things we decided to invest
65,000,000 in t bills.

What is T-Bills :
Is a revocable debt instrument that State Bank of Pakistan issued on behalf of the Pakistani
government and is secured by the government's full faith and credit. Typically, discount
Treasury Bills are sold at auctions with a yield equal to the spread between the purchase price
and the maturity value.

Returns:
Since the market for bonds is not affected by shifting market conditions until the first week of
April when interest rates rise by 100 basis points.
Up till week 7, which is the first week of April 2023, we had a return of 1,402,171. When the
interest rate rose by 1%, or 100 basis points, on April 4, 2023, we saw a return of 918,335 from
Week 8 to Week 12 or maturity. But after the interest rate increased by 1%, we experienced a
capital loss because, even though coupon rates remained constant, yields increased. This is
because when interest rates rise, the prices of existing bonds tend to decline.

Forex Market
As a corporate treasurer, investing in the FX market was essential due to its higher level of
liquidity. Even if your currency increases in value as well, there is always an opportunity to
invest in different currencies. Therefore, despite the market's volatility, gains are higher as well.

What is Forex Market :

The Forex Market is a market in which you can buy, sell, and exchange currencies. 

Returns:
We purchased dollars on February 9 in anticipation of the dollar's future appreciation versus
the Pakistani PKR. We made purchases totaling 221,975 dollars and Rs. 59,999,843. During our
forex trading, we made the decision to keep the dollar and sell it in May for a profit of
$3,622,632. We held dollars mostly because we anticipated rising interest rates, which would
have a long-term depreciating effect on the rupee. Although there were many factors that the
dollar rate throughout the investing term, including political stability, we still chose to hold our
dollar.
Month of February:
We purchased dollars at a cost of 1/270.30, but since we anticipated an increase in the value of
the dollar, we chose to hold them even though the value of the dollar declined over the month
of February and peaked at 259.92 on February 28. Political stability and the IMF's refusal of
loans because of an agreement in one of the articles regarding tax increases, which if done,
would have increased the value of the dollar over the long run, were major factors that
disrupted the dollar rate.

Month of March:
By the end of March, the dollar had increased to 283.92 by the month. The opposition party
challenged the government with a motion of no confidence, which caused many investors to
lose confidence and caused the dollar to appreciate. Despite this, we still opted to hold the
dollar and not sell it. But because we believed that all of these factors would lead to further
increases in the value of the dollar in the future, we chose to hold.

Month of April:
April was a month with a lot of unpredictability. The dollar increased to 287.85 by April 5th.
However, this increase in the dollar's value caused the SBP to raise interest rates by 1%, which
caused the dollar to lose value by the end of the month, falling from 287.85 to 286.6. We chose
to sell the dollar at 286.62 because we believed that SBP will raise interest rates further,
causing a decline in the value of the dollar and a reduction in our return. Dollar worth will
therefore decrease in the future. Our profit after three months was PKR 3,622,632.