Karachi: The Board of Directors of NBP Fund Management Limited has released the unaudited financial statements for the NBP Income Opportunity Fund (NIOF) for the quarter ending September 30, 2025. The fund, categorized as an Income Scheme, exhibited a notable 24% increase in its size, from Rs. 8,843 million to Rs. 10,983 million, outperforming its benchmark with an annual return of 21.3% compared to 10.6%.
During this quarter, the State Bank of Pakistan retained the policy rate at 11% to combat inflation, which rose to 5.6% in September from 3.0% in August. Despite this, average inflation for the first quarter eased to 4.2%, a decrease from 9.2% the previous year. The central bank anticipates that the average inflation for fiscal year 2026 will align with its 5%-7% target, although a slight increase is expected later due to base effects.
The projected real GDP growth for fiscal year 2026 is between 3.0% and 3.5%, falling short of government targets due to flood-related agricultural impacts and inflationary pressures. However, the economy is demonstrating resilience, bolstered by policy reforms and fiscal discipline. The current account deficit for July-August was USD 624 million, while foreign exchange reserves stood at USD 14.4 billion as of September 26 and are expected to reach USD 17 billion by June 2026.
Fiscal performance showed improvement, with a primary surplus anticipated in the first quarter of fiscal year 2026, facilitated by a Rs. 2.4 trillion profit transfer from the State Bank of Pakistan and increased petroleum levies. The sovereign debt market remained stable, with Rs. 3.55 trillion raised through six T-Bill auctions against a maturity of Rs. 3.95 trillion and a target of Rs. 2.98 trillion. Additionally, the central bank conducted multiple PIB auctions, realizing Rs. 1.64 trillion from fixed-rate and Rs. 558 billion from floating-rate instruments.
According to information available from the Pakistan Stock Exchange (PSX), the NBP Income Opportunity Fund reported a total income of Rs. 605.85 million for the quarter, with net income amounting to Rs. 553.03 million after expenses. The fund’s unit price increased from Rs. 10.9033 to Rs. 11.4892, reflecting a positive performance amidst challenging market conditions.
As of September 30, 2025, the fund’s total assets were Rs. 11.87 billion, while total liabilities decreased to Rs. 884.74 million from Rs. 4.46 billion at the end of June 2025. The number of units issued increased to 955,966,173 from 811,050,058, illustrating growing investor confidence.
The board acknowledged the support of its unit-holders, as well as the guidance from the Securities & Exchange Commission of Pakistan and the State Bank of Pakistan, in navigating the economic landscape. The management company, with its experienced team and established processes, continues to strive for capital preservation and reasonable returns through diversified investments in money market and debt securities.