In CY25, Pakistan’s equity market posted a strong performance, with the KSE-30 Index gaining approximately 48.5% 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, Stock Category funds remained well positioned to benefit from the positive momentum in the equity market. Within the Equity Fund category, PACRA assigned ratings to four out of 22 funds, with the category posting an average annual return of approximately 37.5%. The NBP Stock Fund earned a 4-Star ranking, delivering a one-year return of approximately 48.0%, while the top-performing fund within the same category generated a return of approximately 91.1%. As of December 2025, the Fund maintained an exposure of approximately 95.9% to equities, with 3.4% allocated to cash and the remaining 0.7% held in other instruments. Major sector allocations comprised Commercial Banks (21.9%), Oil & Gas Exploration (18.9%), Fertilizers (12.4%), Cement (12.0%), and Textile Composite (9.6%), while 21.1% 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 KSE-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, Equity category showed resilience, with the average return at ~246.5%. NBP Stock Fund received a 4-Star ranking, posting a return of ~354.3%. As of December 2025, the Fund maintained an exposure of approximately 95.9% to equities, with 3.4% allocated to cash and the remaining 0.7% held in other instruments. Major sector allocations comprised Commercial Banks (21.9%), Oil & Gas Exploration (18.9%), Fertilizers (12.4%), Cement (12.0%), and Textile Composite (9.6%), while 21.1% 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 KSE-30 Index delivering multi-year gains and emerging as a top-performing frontier market. Despite this, Equity Fund category showed resilience, with the average return at ~192.0%. NBP Stock Fund received a 4-Star ranking, posting a return of ~292.7%. As of December 2025, the Fund maintained an exposure of approximately 95.9% to equities, with 3.4% allocated to cash and the remaining 0.7% held in other instruments. Major sector allocations comprised Commercial Banks (21.9%), Oil & Gas Exploration (18.9%), Fertilizers (12.4%), Cement (12.0%), and Textile Composite (9.6%), while 21.1% was diversified across other sectors.