Islamabad, March 28, 2024 – The position of Pakistan as a secondary emerging market has been retained by the Financial Times Stock Exchange (FTSE) Russell, a globally recognized index provider.
This decision comes after Pakistan met the minimum investable market capitalization criteria required for maintaining its status, according to a statement released by FTSE.
The evaluation, based on data up to the close of trading on Friday, December 28, 2023, revealed that Pakistan surpassed the minimum investable market capitalization exit level threshold, thus ensuring its continuity as a secondary emerging market. This assessment is part of a biannual review process conducted by FTSE Russell, with evaluations based on data from month-end June and December.
The next assessment for Pakistan’s market classification will be conducted using data up to the close of trading on Friday, June 28, 2024. FTSE Russell is scheduled to announce the results of this assessment by Friday, July 05, 2024.
FTSE Russell maintains a watch list of markets under review, providing investors with visibility into potential market movements and reclassifications. This watch list is crucial for investors seeking insights into the evolving landscape of emerging markets.
Pakistan’s retention of its secondary emerging market status underscores its resilience and attractiveness to investors despite global economic challenges. The country’s capital markets have demonstrated stability and growth potential, contributing to its favorable position within the FTSE Russell index.
This decision by FTSE Russell reflects positively on Pakistan’s efforts to strengthen its economy and financial markets. It reaffirms investor confidence in the country’s economic trajectory and the government’s commitment to creating a conducive environment for investment.
Maintaining its status as a secondary emerging market opens up opportunities for Pakistan to attract foreign investment and enhance its integration into the global financial system. It also highlights the potential for further development and expansion of the country’s capital markets.
In response to the announcement, Pakistani officials expressed satisfaction with the outcome and reiterated their commitment to implementing policies that foster economic growth and stability. They emphasized the importance of continued reforms aimed at improving market transparency, investor protection, and regulatory frameworks.
The retention of Pakistan’s secondary emerging market status in the FTSE Russell index is expected to have a positive impact on investor sentiment and market performance. It reinforces Pakistan’s position as an attractive destination for investment in the emerging market landscape.
As Pakistan prepares for the next assessment in June 2024, stakeholders across the financial industry will be closely monitoring developments to gauge the country’s progress and potential for further advancement within the global investment arena.
In conclusion, Pakistan’s retention of its secondary emerging market status in the FTSE Russell index signifies a vote of confidence in the country’s economic resilience and growth prospects. It underscores the significance of ongoing reforms and policies aimed at enhancing the competitiveness of Pakistan’s capital markets on the global stage.
