In a significant development for Pakistan’s financial sector, Meezan Bank Limited (PSX: MEBL), Askari Bank Limited (PSX: AKBL), and Bank of Punjab (PSX: BOP) have been added to the MSCI Frontier Markets Index as part of the MSCI November 2025 Index Review. The inclusion marks a notable milestone in Pakistan’s representation in global frontier markets and is expected to attract increased foreign investor attention to the country’s banking sector. The changes are scheduled to take effect after the market close on November 24, 2025.
Meezan Bank has emerged as one of the three largest additions to the Frontier Markets Index by full company market capitalization, alongside Vietnam Airlines JSC (Vietnam) and Bank Al Etihad (Jordan). This reflects both the bank’s strong market position and the growing global recognition of Pakistan’s financial institutions. The inclusion of Meezan Bank is particularly significant for the Islamic banking segment, highlighting its expanding role in frontier market investments.
In addition to the main Frontier Markets Index, MSCI has made several changes to its Small Cap Index. Eleven Pakistani companies have been added, including AGP Limited, BBF Foods Limited, Gatron Industries Limited, Ghandhara Capital Limited, Ghani Global Holdings Limited, Image Pakistan Limited, International Industries Limited, Javedan Corporation Limited, Sitara Chemical Industries Limited, Synthetic Products Enterprises Limited (SPEL), and Thal Limited (TOMCL). On the other hand, Askari Bank and Bank of Punjab have been deleted from the Small Cap Index, reflecting adjustments based on market capitalization and liquidity criteria.
The latest MSCI reshuffle underscores Pakistan’s growing footprint in frontier market equities and is expected to bolster foreign portfolio inflows into both banking and industrial sectors. Analysts suggest that this enhanced visibility in global indexes may strengthen investor confidence, potentially contributing to higher trading volumes and improved liquidity in the domestic market.
Across its broader global indexes, MSCI made 69 additions and 64 deletions in the MSCI All Country World Index (ACWI), alongside various changes in the Small Cap, All Cap, and Investable Market Indexes. However, MSCI confirmed that no changes would be implemented for securities classified in Bangladesh in this review cycle due to ongoing market accessibility concerns, highlighting the selective approach of global investors in frontier markets.
For Pakistan, the inclusion of leading banks such as Meezan Bank, Askari Bank, and Bank of Punjab signals increased recognition of the country’s banking sector on a global platform. It also emphasizes the potential of Pakistani equities to attract foreign capital, diversify investment portfolios, and support the long-term growth of frontier markets.
This development is expected to have a cascading impact on investor sentiment, banking sector performance, and overall market perception, reinforcing Pakistan’s position as a key player in frontier market investment opportunities.
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