Pakistan Set to Gain Stronger Position in MSCI Frontier Markets Index

Pakistan’s position in the MSCI Frontier Markets Index is expected to improve in the upcoming review in November 2025. Analysts at Topline Securities predict that Fatima Fertilizer, Askari Bank, and Bank of Punjab may be added to the index. If included, Pakistan’s total number of listed companies in the MSCI Frontier Markets Index will increase to 30, slightly boosting the country’s overall weight. According to Topline Securities, MSCI will announce its global index review on November 5, 2025, and the changes will take effect on November 25, 2025. The firm noted that Pakistan currently has 27 stocks in the index, making up a combined weight of around 5.4 percent, with Fauji Fertilizer Company (FFC) having the highest individual share. However, the report warned that Abbott Pakistan could be removed from the index for not meeting the free float requirement, while Bank Al Habib might also be excluded for not fulfilling liquidity conditions. Their removal could still be avoided if MSCI’s buffer rules are applied. Despite the expected additions, analysts do not expect a major rise in foreign investments. This is because global frontier market funds have low assets under management, and some have already shut down. Estimated inflows are expected to stay limited to USD 3–5 million, even if new investments come in after the index changes. The report also mentioned that Pakistan’s position in the FTSE Frontier Market Index has improved more sharply. The country’s weight in that index rose to 10 percent in September 2025, but this increase has not yet brought significant foreign investment.