Karachi: The recent rally in the KSE-100 index has boosted Pakistan’s chance for inclusion in the MSCI Emerging Markets Index, as per data from the recent MSCI review. The country’s stock market performance and strategic positioning have contributed to its growing prominence in global financial indices.

According to a statement by AKD Securities Limited, MSCI's February review added 13 securities to its Frontier Markets (FM) Index, including two from Pakistan, while removing four. This adjustment increased Pakistan’s weight in the MSCI FM Index to 6.7% as of January 31, 2025, with a total of 23 securities.

The forecast suggests that the rally in Pakistan equities is expected to continue throughout 2025, driven by significant monetary easing and currency stability, supported by a robust external position under the International Monetary Fund (IMF) program. This economic backdrop is anticipated to enhance Pakistan’s weight in the MSCI FM main index to approximately 10% by the end of 2025, alongside an increase to around 18% in the MSCI Small Cap index.

AKD Securities Limited also projects that Pakistan could be added to the MSCI Emerging Markets Index, as seven Pakistani stocks are likely to meet the MSCI EM criteria, surpassing the requirement of three qualifying securities. Additionally, three other stocks are slightly below the threshold, indicating potential for further growth and inclusion.