Pakistan faces positive development opportunities and political uncertainties. The country is currently led by a caretaker government and democratic elections are scheduled for the end of July 20181. Meanwhile, the currency has lost much of its value.

On the other hand, the country next to India offers a great potential for long-term investors. The economy grew by more than 5 percent in real terms in 2017, supported by low inflation and low interest rates. The population of 200 million people is comparatively young, the middle class is growing and the economy is slowly transforming into a service economy2. China plans to invest USD 46 billion in the framework of the China-Pakistan Economic Corridor (CPEC)3. 

Performance MVIS Pakistan Index (TR Net) versus
MSCI Pakistan Net Total Return USD Index 

Source: MV Index Solutions

About the Author:

Jan Altmann is consultant and contributor to the investment and Fintech industry. He has been instrumental in setting up the ETF business in Europe and worked for many big names as well as small boutiques since then. He provides advice and content about emerging topics like ETF-Investing, digitisation, distribution and industry standards.


The article above is an opinion of the author and does not necessarily reflect the opinion of
MV Index Solutions or its affiliates.

Sources:
1World Bank Report on Pakistan, April 2018