Pakistan’s MSCI Frontier Index Weight Falls to 4.8%

Pakistan’s representation within the MSCI Frontier Markets Index declined to 4.8% following the latest semi-annual index review, compared to 5.8% previously, primarily due to an approximate 13% reduction in the market capitalisation of Pakistani listed constituents, while the aggregate market capitalisation of the broader frontier markets index increased by nearly 6% during the corresponding review period, according to an analytical assessment issued by Topline Securities.

Under the May 2026 MSCI review, Habib Metro Bank was added to the principal Pakistan index, whereas Searle Pakistan Limited was removed from the benchmark.

Topline Securities noted that Habib Metro Bank secured eligibility for inclusion after satisfying the prescribed liquidity criteria, specifically the annualised traded value ratio requirement established under MSCI index methodology.

Conversely, Searle Pakistan was excluded after its free-float adjusted market capitalisation declined below MSCI’s minimum qualifying threshold for constituent inclusion.

According to the review findings, the minimum free-float market capitalisation benchmark applicable for May 2026 was set at approximately $116 million.

Searle Pakistan’s adjusted free-float market capitalisation reportedly declined to nearly $82 million by the close of April 2026, resulting in its removal from the index framework.

In contrast, Habib Metro Bank’s adjusted free-float market capitalisation increased to approximately $129.5 million, thereby exceeding the minimum qualifying requirement for inclusion.

Analysts at Topline Securities further observed that although Habib Metro Bank had previously met the required free-float benchmark, stronger trading liquidity and improved market activity appear to have supported its successful addition to the index during the latest review cycle.