On June 16, 2016 the mood was jubilant for the Capital Market of Pakistan. The day marked the historic achievement of MSCI Pakistan Index being elevated from Frontier Markets Index to Emerging Markets Index.
This success has been made possible by coordinated efforts of all capital market entities in implementing a number of reforms in recent years to improve liquidity and transparency. The same has also been acknowledged in the MSCI consultation report on market reclassification proposal for Pakistan.
MSCI Pakistan Index will now be counted amongst an elite group of indices that include regional heavyweights such as China and Korea among others. It will serve to promote the investment potential prevalent in the Pakistan Capital Market at the global level. With major foreign institutional investors and fund managers tracking only indices that are in developed or emerging markets category, Pakistan’s re-entry is expected to increase the participation of foreign investors in Pakistan’s capital market. The influx of foreign capital can help push the index to new heights.
Through unfettered dedication, the Pakistan Capital Market can firmly cement its place on the global financial landscape as a result of this momentous achievement.