Since Musharraf’s departure, Prime Minister Nawaz Sharif has supported economic growth and achieved relative stability through an International Monetary Fund loan program that helped avoid an external payments crisis in 2013.

“This achievement is the result of macroeconomic stability, economic reforms and good governance by the incumbent government,” Finance Minister Ishaq Dar said in a statement. “The new status of emerging market will help Pakistan to attract maximum foreign investment.”

Following previous MSCI upgrades, the United Arab Emirates and Qatar saw their benchmarks jump by at least a third in the 12 months following June 2013. Muhammad Asim, chief investment officer at MCB-Arif Habib Savings & Investments Ltd., argued that the impact of the MSCI’s move has not been priced into Pakistan yet.

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The indexer said the MSCI Pakistan Index will be reclassified from frontier at its May 2017 semi-annual index review and the country will receive a 0.14% tilt in the MSCI Emerging Markets Index.

For more information on Pakistan, visit our Pakistan category.

Global X MSCI Pakistan ETF