Karachi: The Board of Directors of ABL Asset Management Company Limited has released the un-audited condensed interim financial statements for the ABL Islamic Money Market Fund (ABL IMMF) for the quarter ending September 30, 2025. The report highlights a significant growth in net assets and stable economic conditions in Pakistan during this period.
On November 3, 2025, the Board announced that ABL IMMF’s net assets rose to PKR 36,172.95 million by the end of September 2025, marking a 30.27% increase compared to June 2025, when assets under management (AUMs) were PKR 27,767.11 million. The fund’s performance reflects a return of 9.89% for the quarter, slightly above the benchmark return of 9.74%.
The economic landscape in Pakistan during the first quarter of FY26 (July-September 2025) showed signs of stabilization. Inflation averaged 4.2% year-on-year, a decline from the previous year, despite a slight uptick in September to 5.6%. The State Bank of Pakistan maintained its policy rate at 11%, signaling confidence in price stability. According to information available from the Pakistan Stock Exchange (PSX), large-scale manufacturing showed tentative recovery signs, with July 2025 output rising 8.99% year-on-year.
Fiscal performance in the quarter showed mixed results, with the Federal Board of Revenue collecting Rs 2.86 trillion, falling short of the target. Exports for July-August totaled US$5.3 billion, against imports of US$10.4 billion, resulting in a goods deficit of US$5.1 billion. However, worker remittances played a crucial role, reaching US$6.35 billion, which helped limit the current account deficit to US$624 million.
The mutual fund industry in Pakistan saw a 7.81% growth in AUMs, driven by favorable macroeconomic conditions. Conventional Income Funds and Money Market Funds experienced notable inflows, with equity funds also showing robust growth.
In the money market, easing inflationary pressures and a stable policy environment characterized the quarter. The State Bank’s foreign exchange reserves stood at USD 14.4 billion as of September 22, 2025, providing adequate import cover. The Islamic money market mirrored conventional trends, with strong demand for Shariah-compliant instruments such as the Government of Pakistan’s Ijarah Sukuk.
The report also noted that M/s. A.F. Ferguson & Co. (Chartered Accountants) has been re-appointed as auditors for ABL IMMF for the year ending June 30, 2026. The Pakistan Credit Rating Agency Limited (PACRA) assigned a Fund Stability Rating of ‘AA+ (f)’ to ABL IMMF on June 16, 2025, and a Management Quality Rating of ‘AM1’ to ABL Asset Management Company on October 25, 2024.
Looking forward, the economic outlook remains cautious, with potential risks from flood-related inflation and fiscal reforms. The Board acknowledges the support from the Securities & Exchange Commission of Pakistan and expresses gratitude to the management team and unit holders for their continued confidence.