T. Rowe Price's Bell: The opportunity in forgotten Asian reformer Pakistan

The Pakistani equity market recently hit an all-time high after MSCI upgraded it to emerging markets status, effective from May 2017.

Pakistan typifies the classic investment case of a frontier country transitioning to emerging market status, and is a good example of where perception and reality differ. The combination of increased peace and better politics leads to improved economic management and attracts investment, in Pakistan's case $46bn from China for infrastructure, resulting in higher growth. The Pakistani economy is clearly at an earlier stage of development compared to other Asian economies. However, the current overall economic environment in the country is solid, with growth at an eight-year high, and i...