2016-06-15

Pakistan Added in MSCI Emerging Market Index. A great news for the economic managers of Pakistan, the Pakistan has been added again in the Morgan Stanley Capital International’s (MSCI) Emerging Market Index. Pakistan had attained the status in 1990s but was removed from MSCI Emerging Market Status in 2008.

According to Mr Nadeem Naqvi, Chairman SECP, Pakistan stock exchange will get an investment of $ 100 to 300 million after Jun 2017 when Pakistan will be actually added in the EM index.   The MSCI Emerging market is a $ 1.4 trillion market. After the actual entry of Pakistan in the MSCI Emerging Market Index in Jun 2017, 28 Pakistani Companies will be traded by foreign investors.

Pakistan Stocks rallied more than 1000 points to a record breaking 38400 level.  Pakistan Stock exchange increased 15% in 2016, which is the highest growth in Asia. Pakistan is likely to get Chinese investment of $ 46 billion under China Pakistan Economic Corridor (CPEC) in the next 5 years. According to the research of AKD Securities, The Pakistan Stock Exchange Index can reach 42,000 points by Jun 2017.

Pakistan will have a lower weightage of 0.19, second only to 0.18 of Czech Republic. The highest weightage is given to China in the MSCI Emerging Market Index i.e. 25 %.

The 28 companies include, Oil and Gas Development Company Limited, Habib Bank Limited, MCB Bank Limited, Lucky Cement, Fauji Fertilizer Company Limited, Engro Corporation, Hub Power Company , Pakistan State Oil, National Bank of Pakistan, Indus Motor Company, Fatima Fertilizer, Kot Addu Power Company, Fauji Cement, Dawood Hercules Corp, Packages, Pakistan Oilfields, Fauji Fertilizer Bin Qasim, Searle Pakistan, Maple Leaf Cement, Bank Al-Falah, Pak Suzuki Motor Co, Kohat Cement, Nishat Mills, Ferozesons Laboratories, IGI Insurance, Pak Elektron, and Millat Tractors.

Pakistan has to improve its credibility by ensuring corporate governance and transparency.

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