MSCI has added Air Link Communication Limited to its Pakistan Small Cap Index and removed Biafo Industries Limited as part of its latest semi-annual index review.

The changes were announced on August 12 and will take effect at the close of trading on August 31, 2026.

The latest review leaves Pakistan with one addition and one deletion, meaning the country’s overall number of stocks in the MSCI Pakistan Small Cap Index remains unchanged.

Air Link’s inclusion places the technology and communications equipment company in the MSCI small-cap benchmark, while Biafo Industries has been excluded from the index.

The changes could influence foreign portfolio flows in the two stocks, particularly from international funds and ETFs that use MSCI frontier-market indexes as benchmarks.

However, the impact on the broader Pakistan Stock Exchange (PSX) is expected to remain limited because Pakistan has a relatively small weight in the overall MSCI Frontier Markets Small Cap Index.

No Change in MSCI Frontier Markets Index

Pakistan did not receive any constituent changes in the broader MSCI Frontier Markets Index in the latest review.

This means Pakistan’s entire reshuffle for the current review cycle is confined to the small-cap index, with Air Link replacing Biafo.

The changes are part of a wider reshuffle across MSCI’s frontier-market small-cap universe.

Sri Lanka recorded the largest number of changes, with six additions and two deletions, while Vietnam added six stocks and removed three.

Tunisia recorded one addition and five deletions, while Mauritius saw three deletions with no additions.

In the broader MSCI Frontier Markets Index, Vietnam recorded three additions and three deletions. Morocco lost two constituents, while Oman, Ivory Coast and Slovenia each gained one stock.

All announced changes will become effective after the close of trading on August 31, 2026.