Karachi: MCB Investment Management Limited has released its quarterly report for the Alhamra Islamic Money Market Fund for the period ending September 30, 2026. The report reveals a substantial decrease in the fund's net assets, which declined by 42.74% from Rs. 3,832 million on June 30, 2026, to Rs. 2,194 million by the end of the quarter. Despite this decline, the fund's performance slightly exceeded its benchmark, posting a return of 10.31% against the benchmark's 10.02%.

According to information available from the Pakistan Stock Exchange (PSX), the broader economic context during this period showed a mixed picture. The country's current account deficit for the first two months of the fiscal year 2027 stood at USD 543 million, marking a decrease from the USD 853 million deficit in the same period last year. However, the trade deficit saw an 18.8% year-on-year increase, with exports rising by 4.0% and imports growing by 11.4%.

Remittances to Pakistan grew by 14.7%, reaching USD 7.3 billion, contributing to the robustness of the country's external position. The State Bank of Pakistan's foreign exchange reserves rose to USD 21.4 billion, up from USD 18.4 billion at the close of the previous fiscal year. The local currency also saw a minor move, appreciating by 0.4% against the US dollar to 277.1 during the quarter.

Inflation, as measured by the Consumer Price Index, averaged 10.2% in the first quarter of FY27, a significant increase from 4.3% in the previous year. This rise was largely attributed to higher global oil prices, which impacted domestic fuel costs and triggered inflation across various consumer goods.

The country's GDP growth for FY26 was recorded at 3.7%, with the agricultural sector growing by 2.9%, the industrial sector by 3.5%, and the services sector by 4.1%. On the fiscal front, the Federal Board of Revenue's tax collection for the first quarter of FY27 increased by 6.7% year-on-year, totaling PKR 3,083 billion and surpassing the target by PKR 30 billion.

Despite the challenges, the Alhamra Islamic Money Market Fund maintained a consistent Net Asset Value (NAV) per unit of Rs. 99.5100 as of September 30, 2026, unchanged from June 30, 2026. The fund's exposure in cash was reported at 66.8%, reflecting its position in the market during the quarter.