Bloomberg has stated that the Pakistan Stock Exchange (PSX) is one of the best in the Asian markets in a report and further added that Pakistan has regained their ‘tiger’ status in the region with a rise of 15 percent with an increasing growth rate.
It was said that Pakistan’s economy was moving ahead to a stable economy. There have been reforms introduced in the privatization sector and now the country also has good relations with the International Monetary Fund (IMF) which have led to a strong economy. In the report it was said that Pakistan is included in countries which now have a strong emerging market status which has also led to an increase in foreign investments significantly. Investors are keeping an eye on the joint venture of Pakistan and China called the China Pakistan Economic Corridor (CPEC) which is said to increase the foreign direct investment.
The transnational investors are considering Pakistan as the best market for gains after the Chinese economy and interest rates in the United States have given reduced performance. In the past Pakistan was downgraded to the frontier status in December 2008 that is four months after the Karachi Stock Exchange imposed a rule which had an adverse affect on the market for more than three months. MSCI’s Frontier Markets Index features 16 Pakistani companies which make up about 9 percent of the gauge and the Karachi Stock Exchange KSE-100 Index has gained 15 percent due to which it is now termed as the best performer in Asia.
The report said that Prime Minister Nawaz Sharif avoided an external payment crisis in 2013 by taking a loan from IMF and is dedicated to boost the economy at a fast pace.