In FY26, Pakistan’s equity market posted a strong performance, with the KMI-30 Index gaining ~39% during the year, supported by continued macroeconomic stability and improving investor confidence. The rally was reinforced by sustained progress under the International Monetary Fund (IMF) program and continued external financing, while the State Bank of Pakistan’s foreign exchange reserves strengthened to above ~USD 17bn by year-end. Easing inflation, a relatively stable PKR, and resilient remittance inflows further supported liquidity and market sentiment. Within the Islamic Equity Fund category, PACRA assigned ratings to three out of 24 funds, with the category posting an average annual return of approximately 31.5%. Pak Qatar Islamic Stock Fund earned a 3-Star ranking, delivering a 1-Year return of ~29.7%, while the top performing fund within the same category generated a return of ~44.41%. As of June '26, the Fund maintained an exposure of ~92.77% in Equities, ~7.02% in Cash, and the remaining in Others including receivables. Major sector allocations included Oil & Exploration Companies (~22.97%), Cement (~14.84%), Commercial Banks (~11.86%), Fertilizer (~10.97%), Power Generation & Distribution (~7.69%), and the remaining was diversified among other sectors.

Over the past three years, Pakistan’s equity market navigated elevated inflationary pressures, sharp currency depreciation, external financing challenges, and political uncertainty, alongside a prolonged high interest rate environment. Despite these macroeconomic headwinds, the KMI-30 Index delivered cumulative gains of ~263.64% over the period, supported by stabilization under the IMF program, subsequent monetary easing, strengthening foreign exchange reserves, improving external account indicators, and resilient corporate earnings, positioning Pakistan among the best-performing frontier markets during the period. Within the Islamic Equity Fund category, PACRA assigned ratings to three out of 24 funds, with the category posting an average 3-year return of approximately 266.99%. Pak Qatar Islamic Stock Fund earned a 1-Star ranking, delivering a 3-Year return of ~186.15%, while the top performing fund within the same category generated a return of ~336.3%. As of June '26, the Fund maintained an exposure of ~92.77% in Equities, ~7.02% in Cash, and the remaining in Others including receivables. Major sector allocations included Oil & Exploration Companies (~22.97%), Cement (~14.84%), Commercial Banks (~11.86%), Fertilizer (~10.97%), Power Generation & Distribution (~7.69%), and the remaining was diversified among other sectors.