The world's top money managers are supporting Pakistan's stocks after the Stock Exchange was declared among the best globally last year.

According to a fresh article carried by renowned American journal Bloomberg, attractive valuations and a stabilizing economy have improved the outlook for local shares in Pakistan.

The report further says that Pakistan's stocks surged last year with the help extended by improving economic outlook and loan deals with the International Monetary Fund. Similarly, the current account balance of Pakistan has also improved and easing inflation spurred the State bank of Pakistan to cut policy rates.

The report says that asset managers belonging to American multinational investment company,  BlackRock, and another American Investment Management Company, Eaton Vance Corporation, are warming up to fifty billion dollars market of Pakistan, which has handed over eighty four percent returns to investors in 2024. The optimism is also reflected in foreign fund allocations.

The Bloomberg added that despite the challenges of political instability and other financial challenges, investors are bullish, given the improving external finances and foreign exchange reserves, which now cover more than two months of imports.

Steven Quattry, New York-based Portfolio Manager at Morgan Stanley Investment Management Inc says you don't have to stretch your imagination to make an investment case for Pakistan. The rally has been supported by strong earnings growth.

The Chief Executive Officer of Topline Securities Limited Mohammed Sohail says the level of foreign investor interest in Pakistan's economy at present is comparable to the peak years of 2014-2018.

Another fund manager, Ruchir Desai, at Asia Frontier Capital Limited in Hong Kong says if Pakistan can manage its current account deficit, which they should be able to, we can see a multi-year rally in the market.