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Pakistan’s Emerging-Market Status Just Got Into Big Trouble

  • Nation’s weight in index has dropped to about 3 basis points
  • Despite the slip, MSCI is in no hurry to demote Pakistan
Updated on

Pakistan’s inclusion in the MSCI Inc.’s emerging-market indexes has come under a cloud as the nation’s stocks fall below the market-size threshold.

The South Asian nation, which got promoted from a frontier nation in June 2017, has erased about $44 billion of equity value since then. That has narrowed its weight in the MSCI Emerging Markets Index to just above 3 basis points, lower than the 8 basis points Morocco and Jordan had when they were downgraded, according to EFG-Hermes Holding.