Karachi: MCB Cash Management Optimizer has reported a return of 22.15% for the fiscal year ended June 30, 2024, surpassing its benchmark return of 20.90%. The fund’s performance was driven by Pakistan's broader macroeconomic recovery, which averted a looming default and stabilized key economic indicators.

According to information available from the Pakistan Stock Exchange (PSX), Pakistan entered a new IMF program in June 2023, securing a USD 3.00 billion Stand-by Arrangement (SBA). This arrangement helped restore confidence in the economy, with the Pakistani rupee appreciating 2.6% since the start of the fiscal year. The government also introduced decisive measures to combat speculative currency activity and smuggling, contributing to stability in exchange rates.

During the period under review, the fund's net assets decreased by 19.53% to PKR 46,798 million, down from PKR 58,153 million at the end of the previous year. The Net Asset Value (NAV) per unit rose to PKR 102.04 from PKR 101.69, registering a modest increase of PKR 0.35 per unit.

Headline inflation, averaging 23.9% in FY2024, continued to challenge the economy, with the State Bank of Pakistan (SBP) raising the policy rate to 15% to curb inflationary pressures. Despite these challenges, Pakistan's GDP grew by 2.4%, driven by strong growth in agriculture and services sectors.

Looking ahead, the fund remains optimistic about fiscal year 2025, expecting Pakistan’s GDP growth to rebound to 3.5%. The IMF program is anticipated to play a key role in bolstering economic stability, while the USD/PKR rate is expected to stabilize around 311. The fund also plans to focus on fixed-income securities to align with expected monetary easing in the near term.