Pakistan Exchange CEO on MSCI Downgrade, Bourse Outlook

The transcript discusses the market downgrade of Karachi, its implications, and the performance of the Pakistan market. It highlights the strong economic fundamentals, the influx of investments in startups, and the IPO pipeline. Challenges with foreign investment are addressed, along with ongoing reforms in the trading system. The government's economic measures, including negotiations with the IMF, are discussed. The success of Roshan Digital Accounts for overseas Pakistanis is also highlighted.

What was the reason for Karachi's downgrade from an emerging market to a frontier market?

• Economic instability

• Size issues

• Regulatory issues

• Market access problems

How has the Pakistan market performed in dollar terms over the last 10 years compared to the MSCI Emerging Market index?

• Underperformed by 2-3%

• Underperformed by 5%

• Matched the performance

• Outperformed by 2-3%

What recent development has been launched to support growth capital for smaller companies in Pakistan?

• Growth Enterprise Market (GEM)

• Venture Capital Fund

• Startup Incubator

• Technology Park

What is the main reason foreign investors have been hesitant to invest in Pakistan despite attractive valuations?

• Lack of domestic liquidity

• High inflation rates

• Political instability

• A billion dollars have exited since 2017

What system is being implemented to enhance Pakistan's trading and surveillance capabilities?

• Blockchain technology

• AI-based trading system

• System from Shenzhen Stock Exchange

• European trading model

What has been the impact of Roshan Digital Accounts on Pakistan's financial sector?

• Decreased foreign investments

• Over $2 billion inflow

• Minimal impact

• Increased inflation

How has the government of Pakistan been balancing economic stimulus with IMF recommendations?

• By increasing taxes

• By reducing public spending

• Through negotiations and discussions

• By cutting interest rates