Pakistan is going to downgraded to Frontier Market from Emerging Market.

[Desprado]

MSCI to launch a consultation on potential reclassification of MSCI #Pakistan Index from Emerging to Frontier Markets status.

https://twitter.com/x/status/1408264324301328384

in simple, reason they are saying that we do not qualify for the market bases we do not have enough dollar value in our stock market that we can avail status quo. So there, they will downgrade us due to lack of dollar in our stock market.

Now PTI guys can give how it is related to 19 billion dollar CAD but even IMF not buy PTI bullshit.

It is serious learn from Sri Lanka how a default nation, which has less than 4 billion dollar reserve ,which has mostly based on Swap is running better than us and going to be upgraded in the market.

 

[hydrabadi_arab]

Good news.

 

[crigar]

"absolutely not" after shocks?

 

[Trango Towers]

Pakistan is a country where the corporates are seen as leeches and tax evaders. Most PDF Pakis deride TATA's, Ambani's and Adani's for making money for themselves. No wonder their market capitalization is very low, if society sees it as evil.

What an Indian reply.

 

[nahtanbob]

interesting article

 

[Hareeb]

Pakistan is a country where the corporates are seen as leeches and tax evaders. Most PDF Pakis deride TATA's, Ambani's and Adani's for making money for themselves. No wonder their market capitalization is very low, if society sees it as evil.

Did Tata, Birla, Ambani invest in emerging technologies or did they dump their earnings in e-state sector to avoid future taxes?

 

[Patriot forever]

MSCI to launch a consultation on potential reclassification of MSCI #Pakistan Index from Emerging to Frontier Markets status.

https://twitter.com/x/status/1408264324301328384

in simple, reason they are saying that we do not qualify for the market bases we do not have enough dollar value in our stock market that we can avail status quo. So there, they will downgrade us due to lack of dollar in our stock market.

Now PTI guys can give how it is related to 19 billion dollar CAD but even IMF not buy PTI bullshit.

It is serious learn from Sri Lanka how a default nation, which has less than 4 billion dollar reserve ,which has mostly based on Swap is running better than us and going to be upgraded in the market.

https://twitter.com/x/status/1408308019398643713

 

[blueazure]

many intl funds will likely exit PSX if we are downgraded to FM

i see a stock market dip

 

[Desprado]

many intl funds will likely exit PSX if we are downgraded to FM

i see a stock market dip

If we downgrade our self than it will not.

 

[Protest_again]

Did Tata, Birla, Ambani invest in emerging technologies or did they dump their earnings in e-state sector to avoid future taxes?

I am happy that we have TATA's and Ambani's. They pay huge taxes and provide meaningful employment in our country. Yet I see lot of Pakistanis cursing these companies even though they are not of their country. They just think corporations make money by tax evading and corruption. That is so 80's idea. Today corporations survive because of innovation, quality delivery and service. Yet we are ridiculed in this very forum for having such companies in India.

 

[Jungibaaz]

Not a good sign at all, what’s the criteria that we’re now failing to meet that we had met before? I think we were upgraded to EM status in 2017

 

[Vapour]

MSCI is a private investment company, yes its decision may provide an indication into Pakistan's economy, but does it really? Isn't Pakistan's economy mostly informal and not necessarily accurately reflected as per the KSE?

Unlike any naysayers, I wouldn't read too much into this.

 

[Desprado]

MSCI is a private investment company, yes its decision may provide an indication into Pakistan's economy, but does it really? Isn't Pakistan's economy mostly informal and not necessarily accurately reflected as per the KSE?

Unlike any naysayers, I wouldn't read too much into this.

it is only because our market does not have capital in term of dollar. We require dollar to be in EM market but foreign investor are not coming since 2018.

We require foreign funds for our company to get EM status ,which is not and only their is a outflow in our stock market since 3 years.

So now Pakistan may get breathing space as our stock market will be competing against default nations.

 

[Jugger]

The way Pakistani economy is going I agree that this country deserves the downgrade.
Economic condition caused the sudden change of attitude of Pakistan military towards India and also explains the lack of action against India after Aug 5th annexation.

 

[Patriot forever]

it is only because our market does not have capital in term of dollar. We require dollar to be in EM market but foreign investor are not coming since 2018.

We require foreign funds for our company to get EM status ,which is not and only their is a outflow in our stock market since 3 years.

So now Pakistan may get breathing space as our stock market will be competing against default nations.

I am impressed with your last line, but you messed up your reply when you said since 2018 and included your political bias. Stock market was on a downward trend since 2017.

Thats exactly what was happening, irrespective of economy our stock market is rudementary ( the investor base and the number of listed companies is poor, most of our public buys properties earn rent or ooen a saving account and get profits ) and it can not compete with the other markets. Even if our status was upgraded the actual netflow decreased.

The impact will be very marginal as most of the capital flew out at the begining of covid lockdown (around $2.1b in and since than has not returned in any meaninful way).

From the depression when covid first wave the rebound in stock market is on the back of local investors. Hot money had little to no contribution.