Global funds eye Pakistan as 84% stock rally set to continue
ISLAMABAD: Leading global money managers are backing Pakistan’s stock market after it was ranked among the top performers worldwide last year.
A recent article in the renowned American publication, Bloomberg, highlights that attractive valuations and a stabilizing economy have improved the outlook for local stocks in Pakistan.
The report further mentions that Pakistan’s stock market saw significant growth last year, bolstered by a positive economic outlook and loan agreements with the International Monetary Fund. Additionally, the country’s current account balTesla Slashes Prices Amid Stock Woesance has improved, and easing inflation has led the State Bank of Pakistan to reduce policy rates.
According to the report, asset managers from major American investment firms like BlackRock and Eaton Vance Corporation are increasingly interested in Pakistan’s $50 billion market, which delivered an impressive 84% return to investors in 2024. This optimism is also reflected in the allocation of foreign funds.
Bloomberg notes that despite political instability and other financial challenges, investor confidence remains high, due to improving external finances and foreign exchange reserves, which now cover over two months of imports.
Steven Quattry, a Portfolio Manager at Morgan Stanley Investment Management in New York, stated that the investment case for Pakistan is compelling, supported by strong earnings growth.
Mohammed Sohail, CEO of Topline Securities Limited, remarked that the current level of foreign investor interest in Pakistan is comparable to the peak years of 2014-2018.
Ruchir Desai, a fund manager at Asia Frontier Capital in Hong Kong, mentioned that if Pakistan can manage its current account deficit, which is likely, the market could see a sustained multi-year rally.
