Pakistan’s weight in MSCI Frontier Markets Index falls from 5.8% to 4.8%

Pakistan’s weight in the MSCI Frontier Markets Index declined to 4.8% in the latest semi-annual review, down from 5.8% previously, mainly due to a nearly 13% decrease in the market capitalisation of existing Pakistani constituents, while the overall market capitalisation of the frontier markets index increased around 6% during the same period, according to analysis by Topline Securities.

As part of the May 2026 review, MSCI added Habib Metro Bank to the main Pakistan index and removed Searle Pakistan Limited.

According to Topline Securities, Habib Metro Bank qualified for inclusion after meeting the required liquidity benchmark, known as the annualised traded value ratio.

Searle Pakistan was removed because its free-float adjusted market capitalisation fell below MSCI’s minimum threshold for inclusion.

The review showed the minimum free-float market capitalisation requirement for May 2026 stood at $116 million.

Searle Pakistan’s adjusted free-float market capitalisation declined to around $82 million by the end of April 2026, resulting in its exclusion from the index.

In comparison, Habib Metro Bank’s adjusted free-float market capitalisation rose to approximately $129.5 million, exceeding the required threshold.

Analysts at Topline Securities said Habib Metro Bank had already met the free-float criteria earlier, but improved trading liquidity appeared to have supported its latest inclusion in the index.