Foreign investors return to Pakistan

Pakistan has “come a long way from the end of last year when we were basically looking at a default [on foreign debt payments]”, according to finance minister Shaukat Tarin.

It seems foreign investors agree with his assessment, returning in force to the Karachi stock exchange (KSE), Pakistan’s main stock market, just 18 months after many chose to exit in the midst of economic, political and security related turmoil.

In August, foreign equity investments rose to approximately $95m (£58m, €66.4m), a higher monthly average than the $85m a month seen in 2007 when the KSE figured prominently as a destination for foreign investors. Investor enthusiasm has been strengthened by the KSE recently becoming the most undervalued market across Asia.