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Pakistan retained its “secondary emerging markets” status for the next six months in FTSE Russell’s first 2024 review, ARY News reported.
However, the global index provider said that the country faced the risk of demotion as its index weight declined over the past few years.
According to a Bloomberg report, the market capitalisation of Pakistan clocked in at $100 billion in 2017 which declined to $21 billion in 2024.
However, it said that the decision to maintain Pakistan’s status as secondary emerging markets comes after positive developments on the political front following the formation of a stable government.
Bloomberg considered the election of reform-friendly Prime Minister Shehbaz Sharif a positive development for the cash-starved country.
Pakistan Muslim League-Nawaz President Shehbaz Sharif was elected as Pakistan’s 24th prime minister on March 4.
PM Shehbaz secured 201 votes while his Sunni Ittehad Council’s (SIC) opponent Omar Ayub Khan secured 92 votes.
Read more: Pakistan to ‘seek’ fresh IMF loan program
On the economic front, Pakistan reached a staff-level agreement with the International Monetary Fund (IMF) earlier this month on the second and final review under Pakistan’s Stand-By Arrangement.
According to the official statement issued by an IMF team led by Nathan Porter, IMF reached a staff-level agreement with Pakistan on the second and final review of the country’s stabilization programme supported by the IMF’s US$3 billion (SDR2,250 million) SBA approved.
The agreement is subject to approval by the IMF’s Executive Board, upon which the remaining access under the SBA, US$1.1 billion (SDR 828 million), will become available.
Soon after the February 8 election, the newly-elected PML-N-led government was reported to have been planning to avail a fresh IMF loan programme.
Pakistan is likely to seek $6 to 8 billion loan program from the international lender and for this immediate contact will be made with the IMF for negotiations. The sources further said the conditions of the International Monetary Fund would be stricter this time.
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