Stocks Observer. com

Pakistan is likely to be removed from the Morgan Stanley Capital International (MSCI) emerging markets index if the floor at the Karachi Stock Exchange (KSE) remains intact.Such a development could limit the ability of institutional investors to invest in Pakistan, government argued in a request placed with International Monetary Fund, which approved $7.6 billion standby arrangement, to remove the floor at the stock markets. Country's stock market is currently under floor and now the authorities are mulling over various options to resume the normal trading following the IMF' opposition to give the support fund to the market from the taxpayers' money."Such a decision could lead to significant portfolio outflows, consequently putting the pressures on the reserves position," government contends. The authorities also indicated that they were considering supporting the market through: a fund to be established by four state-owned financial institutions (with borrowing g...