Pakistan Upgraded to Emerging Market Status

The index provider MSCI has announced that it will include the Pakistan’s equities in its benchmark emerging-market index for the first time since 2008. This will upgrade PSE’s status to an “Emerging market” status and it will be applicable from May 2017.

The classification could bring up to $500 million in foreign investment within a year.

An Impending Economic Revolution?

The Pakistan Stock Exchange has shown gradual and constant improvement in economic statistics over the the past several months. The improved security situation has attracted foreign investment to the country.

According to Bloomberg News, the KSE 100-Share Index has already gained 15% this year, making it the best performer in Asia.

The gauge has climbed 4.2% this month, compared with a 0.4% fall in the MSCI Emerging Markets Index

Before the announcement, Mattias Martinsson, the chief investment officer at Tundra Fonder which holds $200 million of Pakistani equities, said, “Pakistan is moving into acceptance: the nation has what it needs, a decently functional state and decent stability.”

Also read: Pakistan’s Post MSCI Reclassification to Bring $500 Million in Foreign Investment

Arthur Kwong, the Hong Kong-based head of Asia-Pacific equities at BNP Paribas Investment Partners said,

Basically people are looking for alternatives, finding markets that are less correlated to the U.S. interest-rate cycle and the China macro slowdown. Pakistan, no doubt, is one of the outstanding spots.

After this announcement, the KSE-100 Share Index surged 2% early today following the overnight announcement. This trend is expected to be maintained as new investors will be interested to invest in Pakistan if there is consistency in government’s economic policies and the security situation in the country.

  • Another great Achievement by PMLN.Germans are confident of this government.Telenor is also confident about this government and now after day and night hard work of PMLN.Pakistan will be getting Emerging Market Status.Well done pmln keep up the good work.PMLN is making Quaid-E-Azam dream of Roshan Pakistan a reality.

    • Well this is true but really hard to digest for many. Instead of being a little appreciative there are bunch of people who will find a way to abuse sitting government… anyways whatever the abusers say the fact is that Government’s efforts are commendable.. and credit should be given where it’s due.
      (Now Start abusing me haters)

  • Well if Imran Khan a “true leader” and humble with Pakistan, we should see his appreciation for PMLN. If he doesn’t, then he is just hungry to be PM. And he can not be a brave “leader”.

  • Well Done, Masha Allah, we need to think across the boundaries and need to make our country and nation number one in the world by fair means. these steps (regardless which political party) will give us an extra mile towards success.

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