Mudassar,

Pakistani stocks have been among the strongest performers of the frontier equity markets this year. From my distant perspective, they seem to be responding to political stability (a fair election and smooth transition of government) and capital inflows, in part due to an amnesty program, begun in 2012 and set to expire in 2014, that allowed investors to invest in stocks with no questions asked from tax authorities about the source of funds.

If this relative performance trend were to continue, it is likely that Pakistan would be given a larger weight in the MSCI Frontier Market Index.

Thanks for visiting our blog!

-Dave