In FY25, Pakistan’s equity market experienced a pronounced bull rally, with the KSE-30 index appreciating by approximately 50.94%. Core macro-financial drivers underpinning this growth included the successful IMF Extended Fund Facility review, supported by rollover inflows such as $3.4 billion from China; the State Bank’s aggressive monetary easing, which reduced policy rates from ~22% to ~11% amid CPI inflation easing to 4.6%; and a sharp reserve build-up to USD 14.51 billion, which stabilized the currency and strengthened external buffers. These developments collectively restored foreign investor confidence. Together, these structural and cyclical shifts drove substantial valuation gains in large-cap equities, particularly within the KSE-100 and KSE-30 indices, marking FY25 as a standout year. Within Equity Funds, PACRA rated five out of twenty-four funds, recording an average return of ~50.59%, with the top-performing fund delivering ~81.19%. The NBP Stock Fund earned a 4-Star rating, achieving a 1-year return of ~67.40%. As of June 2025, the Fund’s strategy remained heavily equity-focused, with ~96.1% invested in stocks, ~1.2% held in cash, and ~2.7% in other assets. Its equity allocation was well-diversified, with notable exposures to Oil & Gas Exploration (20.1%), Commercial Banks (18.7%), Cement (12.2%), and Fertilizers (10.8%).

Over the past three years, Pakistan’s capital markets have navigated a challenging macroeconomic landscape, characterized by protracted IMF program delays, entrenched fiscal deficits, elevated political uncertainty, and sharp fluctuations in inflation. These factors tempered investor confidence, producing a wide divergence in fund performance. Yet, the market displayed remarkable resilience, with return profiles reflecting both the adaptability of investment strategies and the selective opportunities captured across asset classes. PACRA assigned star ratings to five funds out of twenty-three, with the category posting an average return of ~153.66%. The top fund achieved ~324.23%. NBP Stock Fund recorded a strong three-year return of ~202.97%, maintaining its 4-Star rating. As of June 2025, the Fund’s strategy remained heavily equity-focused, with ~96.1% invested in stocks, ~1.2% held in cash, and ~2.7% in other assets. Its equity allocation was well-diversified, with notable exposures to Oil & Gas Exploration (20.1%), Commercial Banks (18.7%), Cement (12.2%), and Fertilizers (10.8%).

Over the five-year horizon, Pakistan’s equity markets have weathered periods of pronounced volatility amid enduring macroeconomic imbalances, sustained currency pressures, heightened political uncertainty, and evolving monetary policy stances. Yet, the market’s inherent resilience came to the fore in FY25, culminating in a powerful bull run underpinned by broad-based momentum across all major benchmark indices. Within the Equity Fund category, PACRA rated five funds, with the category posting an average return of ~184.76%. The top-performing fund gained ~302.87%, while NBP Stock Fund delivered a return of ~254.07%, maintaining its 4-Star rating. As of June 2025, the Fund’s strategy remained heavily equity-focused, with ~96.1% invested in stocks, ~1.2% held in cash, and ~2.7% in other assets. Its equity allocation was well-diversified, with notable exposures to Oil & Gas Exploration (20.1%), Commercial Banks (18.7%), Cement (12.2%), and Fertilizers (10.8%).