Karachi: Pakistan Cash Management Fund reported a return of 21.92% for the fiscal year ending June 30, 2024, slightly outperforming its benchmark return of 20.90%. The fund’s performance was supported by Pakistan’s broader macroeconomic recovery, driven by the International Monetary Fund’s (IMF) Stand-by Arrangement (SBA) program.

According to information available from the Pakistan Stock Exchange (PSX), the fund’s net assets increased by 54.29%, rising to PKR 26,970 million by the end of June 2024, compared to PKR 17,480 million at the close of the previous fiscal year. The Net Asset Value (NAV) per unit stood at PKR 50.4678, up from PKR 50.4675 as of June 30, 2023.

The government's efforts to stabilize the economy helped avert a looming default, with Pakistan securing USD 3.0 billion from the IMF in June 2023. The country’s foreign exchange reserves grew to USD 9.4 billion by June 2024, driven by inflows from multilateral sources and bilateral loans. In parallel, the Pakistani rupee appreciated by 2.6%, closing the year at PKR 278.3 against the US dollar.

During the fiscal year, inflation averaged 23.9%, prompting the State Bank of Pakistan to raise the policy rate to 20.50% by June 2024. Despite inflationary pressures, Pakistan’s GDP grew by 2.4%, with agriculture posting strong growth at 6.3%.

Looking forward, the fund anticipates further economic stability in FY2025, with GDP growth expected to rebound to 3.5%. Additionally, the IMF’s continued involvement will play a key role in maintaining macroeconomic stability, especially in addressing the country’s external vulnerabilities.