KARACHI: Leading stock market brokerage house AKD Securities has expressed optimism that Pakistan’s growing diplomatic influence amid evolving regional geopolitical dynamics could benefit the country’s economy and investment climate.
Commenting on the MSCI review, AKD Securities said that if the ongoing war-like environment in the region subsides and tensions ease, investor interest in Pakistan could increase significantly. The brokerage noted that Pakistan’s role in facilitating mediation and ceasefire efforts between Iran and the United States reflects the country’s rising diplomatic influence in the region.
At the same time, Pakistan has successfully returned to the international debt market after a gap of four years, which has further strengthened investor confidence in the country.
On the economic front, Pakistan has continued implementing reforms under the IMF program while successfully maintaining the loan arrangement. The brokerage said these measures have resulted in visible macroeconomic improvements, including easing supply chain and price pressures, a record reduction in the fiscal deficit, and the continuation of a tight monetary policy framework.
According to AKD Securities, all these factors are helping restore investor confidence in Pakistan’s economy.
The brokerage further stated that three Pakistani companies could meet the criteria for inclusion in the MSCI Emerging Markets Index next year, potentially paving the way for Pakistan’s re-entry into the index.
Although Pakistan’s weight in the index would remain limited, the improving outlook for Pakistani equities could attract a broader pool of quality foreign investors.
Meanwhile, MSCI announced changes to its equity indexes following its May 2026 quarterly review. All changes will become effective after market close on May 29, 2026.
As part of the review, the MSCI Frontier Markets Index recorded five additions and eight deletions globally. In Pakistan’s case, one company was added while another was removed, keeping the total number of Pakistani companies in the index unchanged at 29.
In the MSCI Frontier Markets Small Cap Index, 25 companies were added globally, including three Pakistani firms, while 19 companies were removed, including one from Pakistan.
Pakistani Company Added to MSCI Frontier Markets Index
MSCI added Habib Metro Bank to the index, while The Searle Company was removed following a downgrade. As a result, the number of Pakistani companies in the index remained at 29.
Pakistan’s weight in the index stood at 7.5%, slightly lower than 7.7% in October 2025, despite pressure on the KSE-100 Index due to recent geopolitical tensions.
MSCI also added three Pakistani companies to its Small Cap Index under the latest review, including one company added due to downgrade adjustments, while one company was removed.
Following these changes, the number of Pakistani companies in the MSCI Small Cap Index increased to 78, with Pakistan’s weight standing at approximately 10.2%, compared with around 11.3% in October 2025.
Crescent Textile Mills, Highnoon Laboratories and The Searle Company were added to the index, while Murree Brewery was removed.
