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

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