Rally in Pakistani stocks as 15 local firms enter MSCI Frontier Markets Index

Stockbrokers watch an index board showing the latest share prices during a trading session at the Pakistan Stock Exchange (PSX) in Karachi, Pakistan, on September 20, 2021. (AFP/File)
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Updated 11 August 2023
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Rally in Pakistani stocks as 15 local firms enter MSCI Frontier Markets Index

  • The benchmark KSE100 index surged by 619.03 points, marking a 1.28 percent increase by the close of the trading session
  • Pakistan’s prominence in the FM Index is likely to entice foreigners to consider it as a promising investment destination

KARACHI: Pakistan’s stock market witnessed a bullish trend on Friday as 15 locally listed companies were added to the Frontier Markets (FM) Index maintained by Morgan Stanley Capital International (MSCI), a globally renowned provider of investment decision support tools and data.

Frontier markets are smaller economies with less developed financial markets and lower levels of liquidity compared to emerging markets.

The inclusion of Pakistani companies in the index is significant since it reflects growing investor confidence and highlights the potential for higher returns.

The Pakistani stock market responded positively to the development, with the benchmark KSE100 index rising to 48,898.82 points during intraday trading before settling at 48,409.48 by the end of the day. Overall, Pakistani stocks gained 619.03 points, amounting to a rise of 1.28 percent.

“The positive momentum in market is due to the MSCI quarterly review results which increased Pakistan weightage from 0.6 percent to 2.6 percent,” Ali Nawaz, chief executive officer of Chase Securities, told Arab News. “We can see foreign inflows returning to Pakistan’s equity markets on the back of increased weightage in the MSCI Frontier Market Index.”

Earlier, Shahid Ali Habib, an investment banker at Arif Habib Limited, described the inclusion of over a dozen Pakistani companies as “the highest increase amongst all the #MSCi #FM countries” in a social media post.

“15 stocks are now added making the total to 17 stocks in the index,” he said while sharing the list of the companies. “Earlier only 2 stocks OGDC and ENGRO were part of index, now total 17 stocks.”

 

 

 

Pakistan faced significant economic challenges in the past couple of years while seeking external financial assistance from friendly nations and international lenders like the International Monetary Fund (IMF).

The outgoing government of the country managed to secure a $3 billion IMF bailout package in recent months after extensive negotiations.

While Pakistan’s national economy is not yet completely stabilized, its increasing weight in the FM Index is likely to attract foreign entrepreneurs to consider investing in the country’s future.

“The changes to MSCI Frontier Market Index will be effective from August 31, 2023,” Muhammad Sohail, CEO of Topline Securities, said. “The interest of foreign participants is back in Pakistan. In the last six weeks, foreign corporates have done a net buying of $27 million.”


Pakistani politicians urge dialogue with Imran Khan’s party as PM offers talks

Updated 07 January 2026
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Pakistani politicians urge dialogue with Imran Khan’s party as PM offers talks

  • National Dialogue Committee group organizes summit attended by prominent lawyers, politicians and journalists in Islamabad
  • Participants urge government to lift alleged ban on political activities and media restrictions, form committee for negotiations 

ISLAMABAD: Participants of a meeting featuring prominent politicians, lawyers and civil society members on Wednesday urged the government to initiate talks with former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, lift alleged bans on political activities after Prime Minister Shehbaz Sharif recently invited the PTI for talks. 

The summit was organized by the National Dialogue Committee (NDC), a political group formed last month by former PTI members Chaudhry Fawad Husain, ex-Sindh governor Imran Ismail and Mehmood Moulvi. The NDC has called for efforts to ease political tensions in the country and facilitate dialogue between the government and Khan’s party. 

The development takes place amid rising tensions between the PTI and Pakistan’s military and government. Khan, who remains in jail on a slew of charges he says are politically motivated, blames the military and the government for colluding to keep him away from power by rigging the 2024 general election and implicating him in false cases. Both deny his allegations. 

Since Khan was ousted in a parliamentary vote in April 2022, the PTI has complained of a widespread state crackdown, while Khan and his senior party colleagues have been embroiled in dozens of legal cases. Prime Minister Shehbaz Sharif last month invited the PTI for talks during a meeting of the federal cabinet, saying harmony among political forces was essential for the country’s progress.

“The prime objective of the dialogue is that we want to bring the political temperatures down,” Ismail told Arab News after the conference concluded. 

“At the moment, the heat is so much that people— especially in politics— they do not want to sit across the table and discuss the pertaining issues of Pakistan which is blocking the way for investment.”

Former prime minister Shahid Khaqan Abbasi, who heads the Awaam Pakistan political party, attended the summit along with Jamaat-e-Islami senior leader Liaquat Baloch, Muttahida Quami Movement-Pakistan’s Waseem Akhtar and Haroon Ur Rashid, president of the Supreme Court Bar Association. Journalists Asma Shirazi and Fahd Husain also attended the meeting. 

Members of the Pakistan Peoples Party, the ruling Pakistan Muslim League-Nawaz (PML-N) and the PTI did not attend the gathering. 

The NDC urged Prime Minister Shehbaz Sharif, President Asif Ali Zardari and PML-N chief Nawaz Sharif to initiate talks with the opposition. It said after the government forms its team, the NDC will announce the names of the opposition negotiating team after holding consultations with its jailed members. 

“Let us create some environment. Let us bring some temperatures down and then we will do it,” Ismail said regarding a potential meeting with the jailed Khan. 

Muhammad Ali Saif, a former adviser to the Khyber Pakhtunkhwa chief minister, told participants of the meeting that Pakistan was currently in a “dysfunctional state” due to extreme political polarization.

“The tension between the PTI and the institutions, particularly the army, at the moment is the most fundamental, the most prominent and the most crucial issue,” Saif noted. 

‘CHANGED FACES’

The summit proposed six specific confidence-building measures. These included lifting an alleged ban on political activities and the appointment of the leaders of opposition in Pakistan’s Senate and National Assembly. 

The joint communique called for the immediate release of women political prisoners, such as Khan’s wife Bushra Bibi and PTI leader Yasmin Rashid, and the withdrawal of cases against supporters of political parties.

The communiqué also called for an end to media censorship and proposed that the government and opposition should “neither use the Pakistan Armed Forces for their politics nor engage in negative propaganda against them.”

Amir Khan, an overseas Pakistani businessperson, complained that frequent political changes in the country had undermined investors’ confidence.

“I came here with investment ideas, I came to know that faces have changed after a year,” Amir Khan said, referring to the frequent change in government personnel. 

Khan’s party, on the other hand, has been calling for a “meaningful” political dialogue with the government. 

However, it has accused the government of denying PTI members meetings with Khan in the Rawalpindi prison where he remains incarcerated. 

“For dialogue to be meaningful, it is essential that these authorized representatives are allowed regular and unhindered access to Imran Khan so that any engagement accurately reflects his views and PTI’s collective position,” PTI leader Azhar Leghari told Arab News last week.