Official: Pakistan is Now Classified As An Emerging Market

The much awaited MSCI 2017 Semi- Annual Classification Review was announced today, with Pakistan now officially a part of the MSCI EM Index, effective from June 2017.

The MSCI Pakistan Index was upgraded from frontier market to its emerging market classification as part of the review. The Pakistan indexes will fully converge with the MSCI Provisional Pakistan Indexes, effective from June 1. There will be no additions to and 10 deletions from the MSCI Pakistan Index and 11 additions and six deletions from the MSCI Pakistan Small Cap Index.

Pakistan’s benchmark Karachi stock exchange jumped  636 points, or 1.23 percent, on Monday ahead of the expected upgrade.

“The MSCI Pakistan Indexes will fully converge with the MSCI Provisional Pakistan Indexes, effective June 1, 2017,” said the press release issued early Tuesday morning.

After the decision six large-cap stocks will now be part of the MSCI Pakistan Index with effect from June 1, 2017.

  • Oil and Gas Development Company
  • Habib Bank Limited
  • United Bank Limited
  • Lucky Cement
  • MCB Bank
  • EngroCorporation

And additionally 27 more small caps were included in MSCI Pakistan Index.

  • Fauji Cement
  • Engro Fertilizers
  • Bank Alfalah
  • Fauji Fertilizer Bin Qasim
  • Fauji Fertilizer Company
  • Ferozesons Laboratories
  • Honda Atlas
  • Hub-Power Company
  • IGI Insurance
  • Indus Motor Company
  • International Steels
  • DG Khan Cement
  • KotAddu Power Company
  • Maple Leaf Cement
  • Millat Tractors
  • National Bank of Pakistan
  • National Refinery
  • Nishat Mills
  • Packages
  • Pak Elektron
  • Pak Suzuki Motor Company
  • Pakistan Oilfields
  • Pakistan State Oil
  • Searle Pakistan
  • Shell Pakistan
  • Sui Northern Gas Pipelines
  • Thal Jute Mills

Having a Weight of 0.15%

With the new reclassification coming into effect, Pakistan will have a weight of 0.15% compared to 9.1% in MSCI FM. Pakistan’s succession into EM will be more favorable given funds tracking EM are ~ USD 1.2-1.5trn (~100x times bigger) vis-a-vis funds benchmarking FM (~USD 16-17bn).

Since the announcement of Pakistan migrating into MSCI EM (Jun’16), Pak equities have  observed a stunning return of 35.6% during the period. Contribution of local investors has not gone unnoticed especially with outflows witnessed on the foreign front to the tune of USD 547mn.

Pakistan recieved emerging market status in early 90s that continued till 2008, when stock market saw the crisis and was shut down for some period, which resulted in heavy losses which resulted in Pakistan’s exclusion from the EM Index in December 2008.


  • What a great success by a country about whom pple were thinking to collapse. When I say pple, I mean about coward country that too to its neighbours. It’s all due to the positive intentions of the country men and God bless those who stay Positive. Much more to come INSHA ALLAH.

  • Transport on strikes Import & Export is stuck & hold since 9 days.
    Million Dollars waste.
    Court Ne 20 May Ki Date Di
    DIG & IG Kehte hai This is not our Responsibilities.
    Media Khamosh Hai Is Main
    Port Main Offloading Ki Jagh nahi Ab
    Ship Wapis Jane Lage
    & Stock MARKET Increase Ho Rahi Hai :
    THANK YOU MIAN SAHAB !


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