Bloomberg has termed the Pakistan Stock Exchange (PSX) the best of the Asian markets in a report which said it has regained the ‘tiger’ status in the region with 15 per cent rise and increasing rate of annual growth.
The report states that the Pakistani economy is moving ahead to even stronger points with stable output.
Reforms in the privatisation programme and better relations with the International Monetary Fund (IMF) have strengthened Pakistan’s economy. According to the report, inclusion of Pakistan in countries with emerging markets status will increase foreign investment significantly.
Meanwhile, foreign investors are looking at the rewarding outlook in Pakistan after Chinese investment of $46 billion under the China-Pakistan Economic Corridor (CPEC) project.
Bloomberg states that transnational investors are considering Pakistan the best market for gains after reduced performance of the Chinese economy and interest rates in the United States.
Pakistan was downgraded to frontier status in December 2008, four months after the Karachi Stock Exchange imposed a rule that caused near total paralysis of market activity for more than three months.
MSCI’s Frontier Markets Index currently features 16 Pakistani companies that make up about 9 per cent of the gauge.
The Karachi Stock Exchange KSE-100 Index has gained 15 per cent this year, making it the best performer in Asia.
Prime Minister Nawaz Sharif averted an external payments crisis in 2013 through a loan programme of the IMF and is dedicated to boosting economy to its fastest pace of the decade, according to the report.