The present invention provides a paint formulation comprising a binder dispersion and a hydrophobically modified alkali-swellable emulsion. The wet weight ratio of the binder dispersion to the hydrophobically modified alkali-swellable emulsion is from 1:3 to 1:10. The binder dispersion comprises by dry weight based on total dry weight of the binder dispersion, from 0.1% to 80% of polymer particles, and from 0.1% to 5% of a polysaccharide; and the hydrophobically modified alkali-swellable emulsion comprises by dry weight based on total dry weight of the hydrophobically modified alkali-swellable emulsion, from 30% to 50% of an α,β-ethylenically unsaturated carboxylic acid monomer, and from 30% to 60% of an α,β-ethylenically unsaturated nonionic monomer. The present invention further provides a process for preparing the paint formulation comprising mixing the binder dispersion with the hydrophobically modified alkali-swellable emulsion under stirring.