Karachi: The Directors of TPL Properties Limited have released their financial and operational overview for the period ending March 31, 2025. This report provides insights into their company's activities amidst Pakistan's evolving economic landscape.
Pakistan's economy recorded a growth of 2.5% in the fiscal year 2024, with expectations of a 3.25% increase in FY25. The Large-Scale Manufacturing (LSM) sector saw a modest month-on-month growth of 2.1% in January 2025. Among key sectors, textiles and automobiles reported growth rates of 2.1% and 45.7%, respectively, during the first seven months of FY25. The agriculture sector grew by 1.1% in the first quarter of FY25, aided by government initiatives.
The fiscal deficit narrowed to 1.7% of GDP during the July to January period of FY25, down from 2.6% during the same period last year. Simultaneously, the primary surplus increased to 2.8% of GDP. The State Bank of Pakistan maintained its policy rate at 12% in March FY25 after cumulative rate cuts of 1,000 basis points since June 2024. Inflation fell to 0.7% in March FY25 from 20.7% the previous year, attributed to a high base effect and exchange rate stability. The average inflation from July to March FY25 was 5.25%, compared to 27% the prior year.
The current account reported a surplus of $691 million during July-February FY2025, a significant turnaround from a $1.73 billion deficit the previous year. This shift was bolstered by a 32.5% increase in remittances, with March 2025 alone seeing $4.1 billion in inflows. Exports rose by 7.2% to $21.8 billion, while imports grew by 11.4% to $38.3 billion, resulting in a trade deficit of $11.17 billion. Foreign exchange reserves increased, with the State Bank of Pakistan's reserves reaching $11.1 billion in March FY25, and total liquid reserves standing at $16.0 billion.
The Pakistan Stock Exchange (PSX) demonstrated strong performance, with the KSE-100 index climbing to 117,806 points, yielding a 49.5% return during the first nine months of FY25. According to information available from the Pakistan Stock Exchange (PSX), this growth reflects a robust market environment.
In the real estate sector, property prices showed modest growth in major Pakistani cities, with expectations of further recovery. The construction industry is set to rebound, aided by lower inflation and interest rates. Steel prices decreased from PKR 253,000 per ton in December FY25 to PKR 247,000 per ton in March FY25, while cement prices remained stable.
TPL Properties Limited, primarily involved in Real Estate Investment Trusts (REITs), holds a 37.41% stake in TPL REIT Fund I, Pakistan's first Sharia-compliant Sustainable Development Impact REIT Fund. The fund focuses on sustainable development projects across various sectors. Key projects include One Hoshang, a LEED Gold residential project, and The Mangroves, a mixed-use waterfront development. TPL Properties is also exploring international markets through its UAE-based subsidiary, TPL Investment Management.
Financially, TPL Properties reported a consolidated income of Rs. 662.90 million before unrealized fair value adjustments, compared to Rs. 573.02 million in the same period last year. However, the company faced an overall loss due to the mark-to-market valuation of its investments in TPL REIT Fund I. Direct operating costs increased to Rs. 115 million, up from Rs. 53 million in the same period last year, primarily due to heightened construction activity.
The Pakistan Credit Rating Agency Limited maintained TPL Properties' long-term and short-term entity ratings at "A+" and "A1", respectively, though with a "developing outlook". These ratings reflect a low expectation of credit risk and a strong capacity for timely financial commitments.