Morgan Stanley Capital International (MSCI) has announced that it will add Pakistan to the MSCI frontier markets 100 as a number of global investors have shown their willingness to invest in the country’s businesses. The MSCI initiated the consultation on the eligibility of the MSCI Pakistan Index for the Frontier Markets 100 and MSCI Frontier Markets 15% Country Capped indexes.
According to the global indexes and analytics provider, Pakistan’s inclusion in the MSCI frontiers was undertaken during the semi-annual index review which will be announced in May 2022.
The addition of Pakistan to the frontier markets 100 can help the country attract much-needed inflows as Pakistan continues to struggle to attract foreign exchange reserves to meet its current account deficit due to a ballooning import bill. Although this development can attract a limited number of foreign inflows, the local market would continue to be driven by local investors. Currently, three companies, LUCK, MCB, and HBL will retain their position on the MSCI Pakistan index.
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