⚡ Flash Summary

The Pakistan Income Fund (PIF) quarterly report for the period ended September 30, 2025, shows a positive performance with an annualized return of 10.94%, exceeding the benchmark return of 10.57%. The fund’s net assets increased significantly by 75.79% to Rs. 2,396 million compared to June 30, 2025. However, the Net Asset Value (NAV) per unit decreased slightly to Rs. 56.5412. The fund’s investment portfolio is diversified across T-Bills, PIBs, and TFC/Sukuks. The issuance of fresh units has been temporarily suspended to ensure fair treatment of unit holders.

📌 Key Takeaways

• 📈 Fund generated an annualized return of 10.94%, surpassing its benchmark of 10.57%.
• 💰 Net Assets increased significantly by 75.79%, reaching Rs. 2,396 million as of September 30, 2025.
• 📉 Net Asset Value (NAV) per unit decreased slightly by Rs. 1.5176 to Rs. 56.5412.
• 📊 Portfolio allocation: 9.0% in T-Bills, 29.4% in PIBs, and 15.4% in TFC/Sukuks.
• 📅 Weighted average maturity of the fund stood at 1.7 years.
• 🚫 Issuance of fresh units temporarily suspended from September 25, 2025.
• 🤝 Management Company agreed to convert TFCs worth Rs. 49.94 million into 9.2 million ordinary shares of PACE at Rs. 9 per share.
• 🌱 GDP growth is expected to be 3.5% in FY26, with agriculture growing at 2.8%.
• 🏦 SBP reserves are projected to increase to USD 17.5 billion by year-end.
• 💲 A modest current account deficit of around USD 1.5 billion (0.3% of GDP) is anticipated for FY26.
• inflation is expected to remain in single digits, averaging 6.3% for the year.
• 📉 The fiscal deficit is expected to clock in at 4.0% in FY26, the lowest since FY2006.
• ⬇️ SBP has decreased interest rates by a cumulative 1,100 bps since June 2024.
• 💼 Net Assets of the open-end mutual funds industry increased by 10.3% to PKR 4,065 billion.
• 🏦 Money Market funds lead with a 44.8% share, followed by Income/fixed return funds at 36.2%.

🎯 Investment Thesis

HOLD. While the fund shows positive performance, the slight decrease in NAV per unit and the temporary suspension of fresh unit issuance require monitoring. The fund’s strong asset growth and returns above benchmark are encouraging, but further analysis is needed to determine long-term sustainability. Target price: Rs. 58, Time horizon: Medium Term.