In CY25, Pakistan’s equity market posted a strong performance, with the KMI-30 Index gaining approximately 39.1% during the year, supported by macroeconomic stabilization and improved investor confidence. The rally was reinforced by continued support under programs of the International Monetary Fund, including disbursements of approximately USD 1.2 billion, while foreign exchange reserves held by the State Bank of Pakistan strengthened to above USD 15.8 billion by year-end. Ongoing monetary easing, relative stability in the PKR, and resilient remittance inflows further supported liquidity and overall market sentiment. Against this backdrop, Islamic stock Category funds remained well positioned to benefit from the positive momentum. Within the Islamic Equity Fund category, PACRA assigned ratings to three out of 21 funds, with the category posting an average annual return of approximately 31.5%. The NBP Islamic Stock Fund earned a 4-Star ranking, delivering a one-year return of approximately 39.5%, while the top-performing fund within the same category generated a return of approximately 45.4%. As of December 2025, the Fund maintained an exposure of approximately 95.5% to equities, with 2.9% allocated to cash and the remaining ~1.6% held in other instruments. Major sector allocations comprised Oil & Gas Exploration Companies (27.5%), Fertilizers (16.3%), Cement (12.0%), Textile Composite (9.3%) and Commercial Banks (5.9%), while 21.7% was diversified across other sectors. The portfolio positioning reflects a strategy focused on capturing sectoral growth opportunities while maintaining selective diversification. The Fund’s allocation framework remains aligned with prevailing market dynamics and evolving economic conditions.

Over the past three years, Pakistan’s market navigated persistent inflationary pressures, sharp currency depreciation, external financing constraints, and prolonged political uncertainty, alongside a consistently high interest rate environment; despite these macro headwinds, the KMI-30 Index delivered cumulative gains of roughly ~262.9% across three years, supported by stabilization under the IMF program, gradual monetary easing, strengthening foreign exchange reserves, improving current account dynamics, and resilient corporate profitability, positioning Pakistan among the top-performing frontier markets during this period. Despite this, Islamic Equity category showed resilience, with the average return at ~266.2%. NBP Islamic Stock Fund received a 3-Star ranking, posting a return of ~286.6%. As of December 2025, the Fund maintained an exposure of approximately 95.5% to equities, with 2.9% allocated to cash and the remaining ~1.6% held in other instruments. Major sector allocations comprised Oil & Gas Exploration Companies (27.5%), Fertilizers (16.3%), Cement (12.0%), Textile Composite (9.3%) and Commercial Banks (5.9%), while 21.7% was diversified across other sectors.

Over five years, Pakistan’s market faced high inflation, PKR depreciation, external financing stress, and political uncertainty, but improved macro stability, IMF support, stronger FX reserves, and easing rates from CY23 fueled a strong recovery, with the KMI-30 Index delivering multi-year gains and emerging as a top-performing frontier market. Despite this, Islamic Equity category showed resilience, with the average return at ~158.2%. NBP Islamic Stock Fund received a 4-Star ranking, posting a return of ~234.5%. As of December 2025, the Fund maintained an exposure of approximately 95.5% to equities, with 2.9% allocated to cash and the remaining ~1.6% held in other instruments. Major sector allocations comprised Oil & Gas Exploration Companies (27.5%), Fertilizers (16.3%), Cement (12.0%), Textile Composite (9.3%) and Commercial Banks (5.9%), while 21.7% was diversified across other sectors.