It would be interesting to see how market will treat FATF news. FATF has given one more deadline to implement CFT (Counter Terrorism Financing). Simultaneously, appreciated government commitment to eliminate infrastructure of ML (Money Laundering). Importantly, FATF will decide to delist Pakistan from grey list, compared to its earlier stance of upgrading Pakistan name to Black list from Grey list.
This is big success in such a short-time notice. Since the risk of getting into Black list is almost over, in my view, market in general and foreign participants in particular should work to increase their stakes in Equities
1- Rollover, week is over so locals should also price in FATF, improved CAD in January and forward earnings
2- We may start to hear more news flow from IMF side and fast convergence of agreed policy actions steps between Pakistan authorities and IMF
3- big break through expected between China- US trade deal
4- Lastly, softness from across the border. Already Modi has changed his aggressive tone and offer to fight war against poverty to Pakistan Prime Minister.
5- Economic Reform Package likely to approve from the parliament in upcoming week.
6- Malaysian and Turk leaders to visit Pakistan for some big announcements. There are positive signs in near future.
Read also: Pakistan sails between FATF and IMF smoothly