Pakistan upgrades to Emerging Market status next year

Will MSCI upgrade Pakistan to Emerging Markets status

30 November 2016: Sale of 40% stake: PSX set to open bids on 5 December

Pakistan Stock Exchange (PSX) is scheduled to open bids on Monday 5 December submitted by foreign strategic investors and local institutions to acquire 40 percent stake of the bourse.

Initially, 17 bids have been submitted. Foreign strategic investors are a consortium of Nasdaq and two UK-based funds and Chinese based consortium of Shanghai and Shenzhen stock exchanges with one Chinese fund.

Among the local financial institutions, MCB Bank, Allied Bank, Pak-Kuwait Investment Company, Pak-Oman Investment Company and others had submitted their bids to acquire the 40 percent stake. – Business Recorder


Pakistan🇵🇰’s market leaves India🇮🇳’s and China🇨🇳’s in the dust: Forbes

29 November: Unshaken by the rise in US interest rates, Pakistan’s equity markets continue to beat China’s and India’s markets by a wide margin.

In the last twelve months, Global X MSCI Pakistan ETF was up 16 percent, beating India’s and China’s comparable ETF’s, which were in negative territory for the year.

pakistans-market-leaves-indias-and-chinas-in-the-dust


S&P raises Pakistan sovereign credit rating to B

31 October: S&P raises Pakistan sovereign credit rating to B from B-. It says improved macroeconomic stability has raised Pakistan’s growth prospects and bolstered its fiscal and external buffers.

S&P estimates Pakistan’s GDP per capita to be $1,500 in 2016 (versus $1,430 in 2015). S&P revises upward forecasts of average annual GDP growth to 5 percent over 2016-2019 from earlier estimate of 4.7 percent.

S&P B rating reflects improved construction, services sector activity, low-cost oil, finance, high investment associated with China-Pak economic corridor.

S&P forecasts Pakistan’s gross general government debt to fall below 60 percent of GDP by 2018. – Reuters


Pakistan outperforms 26 frontier and emerging markets in 2016: Bloomberg

20 October: Pakistan has outperformed both its fellow frontier markets and members of the emerging-market grouping that it is slated to join in 2017. The KSE100 Index has rallied 27 percent year-to-date to become Asia’s best-performing equity market in 2016, according to a basket of 26 peers tracked by Bloomberg (photo, below).

“The benchmark index can easily reach 60,000 before the general election in 2018,” said an investment analyst.

Pakistan to upgrade to Emerging Market status from next year

15 June: MSCI said its Pakistan Index will be reclassified to the Emerging Markets status, effective May 2017 Semi-Annual Index Review.


Earlier rating upgrades:

5 Pakistani banks: ABL, UBL, HBL, MCB, NBP get Stable rating

Moody’s revises Pakistan rating from negative to stable

Moody’s Pakistan rating at B3 with a stable outlook

pakistan-to-get-emerging-market-status

More about Pakistan:

Harvard predicts Pakistan GDP to grow by 5% over next 10 years

Pakistan is the world’s fastest-growing Muslim economy: The Economist

Pakistan GDP set to grow by 5.3% by 2020: IMF

$10B TAPI natural gas pipeline to be operational in 2020

Pakistan is less corrupt than last year. This is good news. What’s the bad news?

Pakistan petrol prices 18th lowest in the world

Pakistan to become full member as SCO shifts focus from security to economy


Wall Street Journal published this optimistic forecast for Pakistan: Index provider MSCI has revealed it plans to consider upgrading Pakistan from frontier- to emerging-market status next year.

WSJ says: Citing “a number of positive developments over the course of the past 12 to 18 months,” MSCI said it would include Pakistan on its 2016 review list.

News that Pakistan is being considered for inclusion in the MSCI emerging markets index will be seized upon by a government desperate for international recognition of what it says are its achievements in stabilizing the Pakistani economy.

The government of PM Sharif, who came into power in June 2013, inherited low growth, high inflation, a foreign-exchange reserve crisis and crippling electricity shortages.

Since then, inflation has dropped sharply and foreign exchange reserves are more comfortable.


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Pakistan GDP

The government is now on a mission to boost economic growth from the anemic 3 percent that it inherited to around 7 percent by the end of its five-year term. The IMF expects GDP growth to hit 4.3 percent this year and rise to 4.7 percent in 2016.

Pakistan has already achieved recognition among frontier-markets analysts, including Renaissance Capital, which describes the country as “the best undiscovered investment opportunity in emerging or frontier markets.”

Pakistan stocks jump most in a year as MSCI upgrade seen luring cash

June 2016: Pakistan stocks jump most in a year as MSCI upgrade seen luring cash.


Have you seen CPEC stories on this blog?

China-Pakistan Economic Corridor: A timeline

16 CPEC projects in Balochistan, 8 in KPK: Chinese Embassy

Chinese Embassy shares progress on CPEC projects

40 CPEC projects in 4 photos & 60 seconds

CPEC gets 4-layer security as Gwadar to be weapon-free

China’s world-reshaping One Belt, One Road (OBOR)


Pakistan was last in the MSCI emerging markets index in 2008 and brokers said its re-inclusion would be positive.

“Not only size of passive fund flows will increase, many large [emerging markets] funds may return back to Pakistan,” Karachi brokerage Topline Securities said.

Text: Saeed Shah, WSJ | Infographics: Bloomberg, The Economist, MSCI.

pakistan-outperforms-frontier-and-emerging-markets

20 October 2016: Pakistan outperforms frontier and emerging markets in 2016.


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48 comments

  1. Baba Jee Ankhain Khool Lain ab Subah Ho gaee hai…………Lagta Hai Non leagueen hai aap aur Ahsan Iqbal se Boht impress hain………Mulk ka berda Khuruk hua pera hai…Jobless Youth increasing day by day…n u making the slide in favor of Nawaz Shareef Jiska apna Paisa Mulk se Baher hai

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