Pakistan

Pakistan’s equity capital market suffers from a lack of high quality listed companies and initiatives are needed to boost the market as a whole, according to a new plan from the country’s regulator.

China may have grabbed the spotlight after its MSCI review this week but Pakistan was the real winner with its upgrade to emerging market status. Bankers expect the move will light a fire under equity capital markets and give a big boost to IPOs, especially in sectors like infrastructure. John Loh reports.

Pakistan’s equity capital market is set for a big boost from MSCI’s decision to return the country to emerging market status after a seven year hiatus, with bankers expecting foreign investors to pour into stocks.

In a rare liquidity event for one of Pakistan’s blue chip conglomerates, Engro Corp sold down some of its stake in Engro Fertilizer on Tuesday, raising Prp19.31bn ($185m) from the accelerated share sale.

Pakistan’s Engro Corp is selling down its stake in Engro Fertilizers worth some Prp22.04bn ($210m) in a private bookbuilding exercise with local and international investors, said a source close to the trade.

The Pakistan government is planning to sell shares in a pair of energy companies, following approval from the country’s privatisation authority.

In a rare side-by-side appearance in a debate at the ADB annual meetings, the finance ministers of India and Pakistan sidestepped the normal hostile tone between the two Asian powers to outline how they will both surpass China with 7% annual growth.

The Securities and Exchange Commission of Pakistan is seeking comments on its draft Public Offering of Securities Rules 2016 in a bid to tighten regulation on equity and debt issuance.

Pakistan has signed its latest loan at a higher than launch size of $408m, completing the syndication within just three weeks.

A recent succession of frontier market sovereign loans have given banks an opportunity to build relationships with these countries. Outwardly, some lenders may find it hard to stomach Mongolia, Pakistan and Sri Lanka risk. But a more nuanced view is needed. Getting in early will allow banks to be part of their development story.

Pakistan and Sri Lanka have approached the loan market for their latest fundraisings. While interest in the former has been steadily rising, the latter was recently hit by a rating downgrade.

The Islamic Republic of Pakistan has launched its third syndication in just the past year, seeking a $150m financing this time around.