Karachi: The Alhamra Islamic Income Fund has reported a commendable performance for the quarter ended September 30, 2024, with an annualized return of 20.99%, outperforming its benchmark. This comes as Pakistan's economy shows signs of stabilization and growth despite ongoing global and local challenges.

In a recent report released by the management, the fund highlighted a net asset value increase from Rs. 104.0607 per unit at the end of June 2024 to Rs. 109.5654 per unit at the end of September 2024. The total net assets of the fund stood at Rs. 35,924 million, up from Rs. 32,294 million at the end of June, marking an 11.2% increase.

According to information available from the Pakistan Stock Exchange (PSX), Pakistan's economy has seen significant improvements, including a decrease in the current account deficit and robust growth in remittances and exports, particularly in the textile sector. This economic rebound is supported by an IMF Extended Fund Facility of approximately USD 7.0 billion, which has helped bolster foreign exchange reserves and stabilize the national currency.

During the quarter, the fund primarily invested in Ijara Sukuk and cash, with exposures of 54.3% and 40.5% respectively. The economic indicators have been positive, with a declining headline inflation, which averaged 9.2% during the first quarter of FY2025, a decrease from 29.0% in the previous year. The GDP of the country grew by 2.5% this year, with contributions from agriculture, services, and a slight decrease in the industrial sector.

Looking forward, the fund remains cautious yet optimistic about the future economic trajectory. The GDP is projected to increase up to 2.8% in FY2025, driven by a gradual recovery in the industrial and services sectors. The fund expects further monetary easing and a stable policy environment, which should support continued growth and investment returns.

The Alhamra Islamic Income Fund has expressed gratitude towards its investors, the Securities and Exchange Commission of Pakistan, and other stakeholders for their continued support and cooperation, acknowledging their role in the fund's successful performance amid challenging times.