Despite a notable increase in Pakistan's weightage by leading international indices providers, foreign investors continue to stay away from the Pakistan Stock Exchange (PSX).
Leading indices providers, such as Morgan Stanley Capital International (MSCI) and the Financial Times Stock Exchange (FTSE), have increased Pakistan's weightage.
While the FTSE Frontier Market Index raised Pakistan's weight to over 10% in September 2025, "but it has no practical use," said Shankar Talreja, Director of Research at Topline Securities.
These increases have not translated into meaningful foreign portfolio inflows, reflecting persistent scepticism about the country's equity market.
Author's summary: PSX sees index boost without foreign investment.